How Gym Owners Can Take Advantage of a PEO

The frustration and stress of modern HR functions have resulted in the increased use of outsourcing solutions. But one is incredibly valuable to small employers like gym owners: Professional Employer Organization (PEO).

A PEO guides businesses on employment issues and provides them the advantages of their economies of scale to access big-business benefits. PEOs help gyms save on employee benefits, but can also manage specific parts of their payroll and HR too.

What is a PEO?

A Professional Employer Organization (PEO) works with small and mid-sized businesses to help them manage access to benefits, payroll-related taxes, certain human resources functions, and other employer administrative functions necessary for the smooth running of a business. It, thus, leaves you free to focus on other business aspects like growth and scaling.

Legally speaking, PEO hires employees directly through a co-employment or joint employment process. It, therefore, shares and manages several employee-related liabilities and responsibilities. PEOs make processing payroll, benefits, insurance, and tax far easier while some assume the legal risk for hired employees.

PEOs offer employers economies of scale and more benefits options, sometimes at reduced rates. Depending on the contract with a PEO, a business can outsource a few or all its HR functions.

Benefits of a PEO for Your Gym Business

PEOs offer numerous significant advantages, especially for a small employer who may not have HR expertise or the systems' capabilities required for functions like HRIS and payroll. Some employers also opt for these services because they don't have the time or resources to focus on transactional HR functions.

A PEO is an innovative way of having HR and payroll infrastructure without spending the time and effort needed to run your business successfully. Engaging PEOs is common among startups, small businesses, and growing companies that require administrative support.

Below are the benefits of outsourcing a PEO:

1. Benefits Administration

A primary goal of hiring PEO services is to provide your gym employees with access to comprehensive, cost-effective benefits without the resultant administrative or regulatory burdens that are costly and can be overwhelming. As a co-employer, a PEO can offer various employee benefits through sponsored benefit plans, including health coverage (medical, vision, and dental), life and disability benefits, and a healthcare flexible spending account.

As the plan sponsor, a PEO will handle most related administrative tasks such as enrolling employees, negotiating with carriers, handling COBRA administration, and providing legal notices. PEOs can also help employees better understand their benefits by providing online content and enrollment tools and a call center to answer any related questions.

2. Payroll Administration

Working with a PEO can reduce your payroll process and other related accounting costs. They conveniently automate your payroll process and handle withholdings, garnishments, and W-2s. Always hire a PEO service that charges separate fees for its various payroll services, like providing annual or quarterly payroll reports.

3. HR Compliance Assistance

Employment law is complex and changes a lot. Therefore, failure to keep up with HR regulations, rules, and laws that apply to your gym business can cost you big time in fines and other penalties. A PEO has seasoned HR professionals to help you avoid mishaps with the following laws and regulations:

• You must adhere to the sick leave policies that apply to your business. For example, paid sick time policies. It more so applies to you if your gym business operates in multiple locations.
• You ought to stay current with hiring practices and regulations. For example, recent changes prevent employers from asking job candidates about their criminal backgrounds on initial job applications.
• Compliance with wage equity laws. The new wave of regulations prohibits you from requesting salary history on all job applications.

4. Retirement Plans

PEOs can provide you access to a retirement savings program, including 401(k), which may help your employee retention. As a small business, it is worth enquiring if your PEO sponsors 401(k) plans that allow your employees to defer retirement compensation while taking advantage of contributions like employer matching schemes.

As the plan sponsor, a PEO will manage the 401(k) regulatory requirements and administrative responsibilities, including distribution processing, compliance testing, and required notices. It will also provide educational materials or online experience to help employees achieve better retirement outcomes.

5. Worker's Compensations Administration

Insurance premiums and claims management make worker's compensation costly and time-consuming. A PEO can provide coverage to your employees through its workers' compensation insurance program since it's a co-employer. It can also handle the compliance, paperwork, audits, and certifications associated with these programs.

PEOs should offer access to a dedicated team of specialists familiar with your gym business and who will work collaboratively with your HR services team.

6. Recruiting and Hiring

Presently, recruitment moves at light speeds. You require a quick turnaround to find qualified and capable job candidates when positions open up, but you may not have the time to focus on solid recruiting essentials. What's more, when you consider the time and cost of placing job ads, conducting background checks, interviewing candidates, and more, hiring the wrong person is a costly error.

The right PEO offers additional services like recruitment assistance to provide you access to experienced recruiters.