PEO is a transparent PAYE employment model where the actual gross pay rate is quoted from the start and does not change. There are no deductions other than PAYE employee tax, national insurance and pension, if applicable.
Your business and the PEO will both be officially recognised as the individual’s employer, with appropriate contracts outlining responsibilities and liabilities for both parties, whilst also providing clear guidance to individual employees.
When you stop and think about it, numerous parts of your business could or maybe already are being outsourced, such as: IT, Marketing, Cleaning, Security, Lead Generation. Due to the raft of legislative changes, outsourcing payroll is a popular choice, mitigating risk and enabling you to focus on activities supporting profitable growth.
You, as the employer maintains full control. With typical outsourcing, you will often worry if the work is being completed accurately and compliantly; if anything goes wrong, you are ultimately responsible. You can reduce risk due to the PEO inheriting a level of responsibility and legal accountability for any penalties incurred.
Simply put, yes. Plus, it is financially prudent to move a number of internal administrative and support functions to an outsourced specialist.