Things you should know about PEO payroll providers – Husys

Small business owners can always conduct payroll processing independently, but the prospect of gathering employee information, distributing paychecks, and identifying applicable taxes and withholdings can be overwhelming. There are a variety of alternatives to DIY payroll, including regular PEO payroll providers and payroll software. However, if your company needs other services, such as human resources, compliance, and taxes, consider working with a professional employer (PEO).

When a company uses a PEO for payroll, the PEO becomes a co-employer responsible for managing the client’s payroll administration and employee taxes using its tax identification numbers rather than the client’s.

The PEO is often in charge of payroll-related tasks such as paying wages, depositing employment taxes, and giving W-2s to employees. PEO payroll occasionally assists with the administration of payments to complete- and part-time employees, vendors, and contractors. Your company is still in charge of day-to-day operations and management.