If doing payroll in house has you at your wit’s end, you have more options than hiring an accountant or outsourcing to a payroll company. You can also work with a PEO, or Professional Employer Organization.
PEOs are companies that handle Human Resources (HR) tasks like payroll, workers’ compensation coverage, employee benefits like insurance, and ensuring compliance with all payroll-related taxes, laws, and regulations. Unlike outsourced payroll and HR companies, a PEO company becomes a joint owner of your small business—which can be confusing and off-putting to some small-business owners but hugely reassuring to others.
If a PEO company doesn’t work for you, no sweat; there’s another payroll solution out there for you somewhere, whether in the form of payroll software or a full-service accountant. But for employers who could use another set of hands on one of the most expensive, complicated parts of running a business, a PEO company can be an affordable, stress-relieving solution.