How Does a PEO Reduce Employer Liability?

Small business owners have a lot to worry about when it comes to liability. Not all of us turn a large enough profit to easily settle lawsuits and claims should a workplace problem arise.

Through the co-employment business model, PEOs reduce an employer’s liability in the following ways:

Payroll: There are hundreds of regulations surrounding payroll, all of which businesses must comply. Learning all of them can be extremely tedious and confusing. With a PEO managing your payroll, you can rest assured knowing it’s handled by the experts. In a co-employment relationship, your PEO assumes liability for payroll activities, which is important if there is fine or lawsuit surrounding payroll.

Workers Compensation: Many PEOs provide workers compensation insurance as well, which takes another form of liability off your plate.

Risk Management: In addition to providing insurance, some PEOs will provide risk assessments for your workplace and even safety training for employees to limit the overall risk of your workplace.

EPLI: Employment Practices Litigation Insurance (EPLI) protects employers from employees or former employees who wish to sue them. Many PEOs offer EPLI through the co-employment relationship.

To limit your Company’s liability and simultaneously improve your company’s overall cash flow position, contact Employer Solutions Plus.