Is your restaurant not doing as well as you’d like? Do you need help making the best business decisions? Professional Employer Organizations, or PEOs, can assist here. They can manage payroll and HR operations and offer advice on risk management. This means you don’t have to do everything yourself. Want to know more about how PEOs can help your business grow? Keep reading!
6 Ways PEOs Can Help Your Restaurant
Here are some ways PEOs can help your restaurant succeed:
Providing Employee Benefits:
Small and medium-sized restaurants often struggle to offer good employee benefits. PEOs can help by creating benefit packages for employees. They can negotiate better benefits and insurance rates. They can offer things like dental, eye, and medical coverage, disability and life insurance, and worker’s compensation. Working with a PEO can also provide a savings plan for your employees.
Handling Payroll and Taxes:
PEOs can manage payroll operations and make sure taxes are paid on time. Payroll can be complex in a restaurant because a lot of employee income comes from tips. PEOs have years of experience handling these situations. This can reduce your workload and let you focus on growing your business.
Saving Time and Money:
Administrative work can be challenging and time-consuming for restaurant owners. Working with a PEO can make your daily operations easier and faster. A PEO can save you time and reduce your back-office costs. They can also offer affordable insurance plans and flexible ‘pay-as-you-go’ options. This can help manage your cash flow.
Creating a Safe Workplace:
Having a good product, a strong customer base, and proven marketing strategies isn’t always enough. Any unexpected accidents can hurt your business and reputation. A PEO can help you understand and protect your business with worker’s compensation and liability policies. They can also train you on discrimination and harassment to prevent claims and lower risks.
Keeping You Informed About the Law:
PEOs know a lot about the law and can help keep your business compliant. They can also keep you updated on changes in laws and regulations. For instance, a new law in Florida states that businesses with a minimum of 25 employees must use E-Verify while onboarding. Every business must use this digital immigration verification tool from the 1st of July, 2023 to confirm hiring authorized employees. Any non-compliance to this rule may attract a hefty penalty to the employer.
Working with a PEO protects your business from such lawsuits and ensures its compliance with labor laws. Thus, you remain safe against penalties and can run your business uninterruptedly.
Reducing Employee Turnover:
High employee turnover can be a big problem for restaurant owners. It’s expensive and time-consuming to hire and train new employees. According to statistics, replacing a worker in your restaurant can cost 15% to 200% of a person’s annual income. Working with a PEO can help reduce employee turnover by offering better employee benefits.
What to Look for When Hiring a PEO?
Here following are a few things to look at when finding a PEO:
- It must be industry-accredited
- The PEO services must be able to grow as your company expands
- How does the PEO charge? Is it per employee or a percentage of the total payroll?
- Do the PEO have a trained team?
Final Word
So, now you know why restaurant owners should hire PEOs for their business administration. They offer a streamlined business strategy to save your expenses and simplify the payroll and employment tax processes. For PEO assistance and other requirements, you can contact us. Read our previous blogs on PEO for a deeper insight into their working principles.
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