How Professional Employer Organizations Can Assist Small Businesses in Michigan

Michigan is a very beautiful state with a great prospect for businesses and investments. In the third quarter of 2017, the Michigan economy grew at an annual rate of 3.5%, which was faster than the overall US growth rate of 3.4%. In total, there are about 870,301 small businesses in Michigan and 1.8 million small business employees in 2018.

The rapid growth of small businesses in Michigan did not just start today. In 2015 for instance, small businesses created 66,240 net jobs and about 139,013 loans under $100,000 (valued at $2.1 billion) were issued by Michigan lending institutions reporting under the Community Reinvestment Act. These awesome statistics are evidence of rapid growth and opportunities of small businesses in Michigan.

Are you wondering why this city is so peculiar when it comes to business opportunities? Obviously, the role of Professional Employer Organizations (PEO) cannot be overemphasized in the survival of small businesses in Michigan. Just imagine having a firm that handles all your HR needs, including payroll and administration, workers’ compensation insurance, employee health, and retirement benefits, state and federal compliance issues and even workers’ training!

What is PEO?

PEO or Professional Employer Organizations offer comprehensive HR solutions to small and mid-sized businesses. A PEO can be a cost-effective solution for bars and restaurants to help employee retention, save money, streamline compliance, executing payrolls and tax administration, regulatory compliance, etc. 

By taking care of this paperwork and offering regulatory compliance assistance, PEOs assist small businesses to improve productivity, increase profits, and enhance the concentration of business owners on the core aspects of their business.

More so, the employees of small businesses can gain access to big-business employee dividends like the 401(k) plans, life, dental, and health insurance, and other benefits they are not naturally entitled to as employees of small establishments.

The Department of Licensing and Regulatory Affairs (LARA), Michigan, attested that the Professional Employer Organizations are regulated under Act 370 of 2010.  The Act defines a “PEO” or “professional employer organization” as any person engaged in the business of providing professional employer services regardless of its use of a descriptive term other than “professional employer organization” or “PEO”.

Roles and Duties ChampionPEO and How Small Businesses Can Benefit

The roles and responsibilities of PEOs can be categorized into four. These categories are:

1.     Workers’ Compensation Administration

ChampionPEO takes charge of your workers’ compensation administrative tasks like reviewing and administering claims, creating and administrating workers safety plans, performing safety-related audits and reviews, complying with the OSHA regulations, reporting and documenting on-the-job accidents, and workers’ compensation billing reconciliation.

If you operate a business in which there is a reasonable chance of someone getting hurt, using ChampionPEO to manage your workers’ comp can save you thousands of dollars. With Champion, the workers’ comp claims are charged against the PEO in order to evaluate the insurance costs instead of your own business. Thus, the workers’ compensation administrative tasks of ChampionPEO prevent the potential disaster of having a major claim filed against your business.

2.     Payroll Administration

The payroll administrative tasks provided by ChampionPEO include the preparation and distribution of payroll checks, management of government withholdings, execution of employee direct deposits, preparing and reporting W2s, W3s and other employee-related documents, tracking vacation and sick time, and keeping payroll records for audits and inquiries.

If you currently perform these tasks on your own, then you must know the intense burden on you. Using ChampionPEO relieves you of the stress and save you a significant amount of money in some areas where payroll administration is practically free.

3.     Benefits Administration

The Benefits Administrative tasks provided by ChampionPEO include tasks like 401k administration, life insurance administration, management of disability plans, COBRA compliance, flexible spending account administration, benefits handbook creation, annual benefit plan review, and administration of employee assistance plans.

Providing your employees with the best possible plans through the use of Champion can be a good way to keep your employee happy and highly productive. Using a Champion can save you the hassle and resources required to research, shop, and compare different benefits plan. It also saves you money by offering you lower rates than you’d be able to get on your own.

4.     Human Resources Administration

The Human resources administrative tasks offered by ChampionPEO include tasks like accepting employment applications, creating employee handbooks, performing background checks, creating a channel of communicating policies with the employees, managing EPU insurance and providing legal assistance,

Instead of spending hours managing the HR tasks of your business, you can easily have ChampionPEO handle that for you. Likewise, hiring a PEO firm with little or no clear understanding of their roles and duties can hurt your business more.

Other roles of PEOs

5. ChampionPEO manages thousands of employees as such, can purchase insurance and benefit plans with a significantly low price. This can allow you to offer high-value plans that can attract and retain skilled labors. 

6. Champion provides quality HR, payroll, risk management, and other administrative services. Thus, if you agree that it is more profitable to allow professionals to handle these business activities, Champion will do it for you.

7. We will also provide HR manuals for your employees. These manuals are usually updated every time in compliance with the dynamic state and federal laws and regulations

8. Champion also helps with employment-related regulatory compliance (payroll, OSHA, EEOC, etc. This is a huge opportunity that worth more than the money saved on benefits costs for your business.

9. Champion also helps take charge of every HR employee claim like discrimination allegations.

10. We provide accurate management records of payroll, benefits, employee data, and specialized reports.

Professional Employer Organizations activities in Michigan

So, what are the relevance and significance of the role of PEOs in Michigan? According to the industry statistics, there are about 907 PEOs in the US and provide services to 175,000 small and mid-sized businesses, employing 3.7 million people. The 175,000 businesses covered by PEOs represent only about 15% of all businesses with employees between 2 and 99.

In Michigan alone, there are about 71 PEOs operating in the city. Each of these firms has different capabilities in terms of payroll services and HR management. Likewise, each of these PEOs has different access to various medical and insurance plans. Thus you can compare plans, sit through demos and lengthy sales pitches, or you can look to ChampionPEO where value-added and cost savings are our top priorities.

Is ChampionPEO for you?

The next question that will probably come to your mind right now is whether or not ChampionPEO is for you. If you run a small or mid-size business in Michigan or any other part of the country, there are some instances where the role of a Champion comes handy. Here are some of the instances include:

  1. You find your time taken with personnel and compliance issues
  2. You desire to recruit and retain experienced and productive employees
  3. You want to offer the benefits package of a much larger company without the cost and hassle of adding another department to administer those benefits
  4. You want to refocus on increasing revenue and driving down costs
  5. To you, the area of payroll has become a laborious and complicated procedure

If you are affected by one or more of the above instances, it is about time you hired ChampionPEO. Give Champion a call today to talk with a Business Solutions Professional at 1(313)67-CHAMP (24267).