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How to Leverage a PEO Firm During an Expansion to the US

06-02-2020 09:53 AM CET | Business, Economy, Finances, Banking & Insurance

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You've launched a business, scaled it and found a great base of customers in your local region. The logical next step is to expand into the US. But to solidify your presence in the United States, you'll have to bring on staff members, ensure that they've got all the benefits they need, and be sure that your hiring practices and employment strategies are in line with local and federal regulations.
For many entrepreneurs, handling those responsibilities can get in the way of growing into the US market, and these business leaders simply don't have the time. That's why for many international brands, a PEO firm is the best solution during their US expansion.
Here's what it is: A PEO, or professional employer organization, is a firm you can hire to outsource employee management tasks such as employee benefits, payroll, workers' compensation, recruiting, risk/safety management and even training and development.
A PEO firm is aware of the compliance regulations that oversee labor practices and benefits management, and can help you stay on the right side of the law. These companies can also help you bring on staff and offboard them when they leave. You'll have the satisfaction of knowing that you're in line with all laws while also having the time to scale your business.
By taking your staffing responsibilities off your hands, the PEO firm will allow you to enjoy the following benefits:
Significant Cost Savings
By using a PEO firm, you'll save money in a variety of ways. First, you won't have HR staff members on your payroll, and you'll only use the PEO's services when you need them. Instead of having to pay salaries and benefits, you'll either pay a flat fee or an hourly charge to get all of your professional employment responsibilities taken care of. You will also see savings in office space since the PEO is outsourced, and you won't have to invest in the software and technology required by these professionals.
Optimal Compliance
Staying on top of all federal, state and local employment and tax laws can be cumbersome and stressful, especially for a small business. By outsourcing to a PEO, a small business can protect itself from legal issues because there is a team of compliance experts working to ensure that all the rules are being followed including wage, hour, payment and break laws, requirements for insurance and so on. A PEO can also develop an employee handbook that includes appropriate harassment, anti-discrimination and Affordable Care Act (ACA) policies, among others.
Increased Business Focus
Taking your business into the US market can be stressful and time consuming. By outsourcing your HR responsibilities to a PEO firm, founders and CEOs can have more time to devote to scaling their companies.

2345 Yale Street, 1st Floor
Silicon Valley, California, USA


P (800) 956-8019

F (650) 392-8248

Back office services like accounting, payroll, HR, taxes etc. were limited to one or two services at a time. The search for and coordination of these providers was left to the business owner. There had to be something better than these time consuming and inefficient options.

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