Outsourcing to HROs and PEOs

Source: The CPA Journal

Smaller businesses can provide employee benefits that compete with larger firms by outsourcing to a third party. It may be a better option than cutting benefits or increasing deductibles and co-pays in health coverage. It also may provide protection against employee lawsuits, as when an employee’s benefits are terminated because a deadline is missed. Finally, outsourcing to a third party can significantly reduce a business owner’s time devoted to paperwork related to employee benefits.

Use proper due diligence in selecting a provider. The following Web sites will be helpful: The National Association of Professional Employer Organizations www.napeo.org and www.peo-directory.com.

From The CPA Journal, June 2005. For the complete article, click on the following link:
http://www.nysscpa.org/cpajournal/2005/605/perspectives/p13.htm.