The remote work revolution took root and became supercharged in 2020 as the COVID-19 pandemic began to manifest. In 2019, prior to the emergence of the pandemic, only about 6% of Americans reported that they worked primarily from home. That number quickly jumped to roughly 35% of Americans by the following year.
The figures have ebbed and flowed since then, but the fact that many Americans are now quite comfortable with the concept of remote work remains the same. This also means that many companies must think about how they approach the management of those who perform remote work for them. The answer that so many have landed on is that they must consider bringing in a professional employer organization (PEO) to assist them.
In this post, we will share how PEOs can give companies this option and allow them to offer flexibility to their staff.
How Can a PEO Assist with Remote Work Compliance?
Not every aspect of a business's operation can necessarily be performed in-house. There are times when it makes more financial and organizational sense to bring in an outside service to assist with at least some of a company's operations. When that is the case, a PEO can become extremely useful.
Essentially, a PEO offers services to companies of all sizes to assist them with the everyday tasks necessary for running a business. From managing payroll to helping with the hiring and firing process, a PEO can offer a wide range of offerings to meet the needs of the companies they serve.
Remote work requires technological and compliance sophistication that smaller companies often lack the capability to achieve. It’s important to ensure that different state and local regulations are adhered to, and your employees need a robust online framework to stay connected across distances. PEOs have the expertise to manage your compliance needs, provide the framework to ensure benefits are available online, and offer guidance to empower your team to stay connected when far apart.
Ways PEOs Handle Remote Work Compliance
Professional employer organizations can assist with managing remote workforces in the following ways:
Payroll and Tax Compliance
The primary reason why any employee comes to work is so they can collect a paycheck at the end of the week that helps to fund their livelihood. They may find fulfillment in other aspects of their work as well, but you won’t keep them around for long if you don’t pay them. As such, a PEO can ensure that your company is maintaining proper payroll and tax records for all remote workers on your team and that their payroll and tax needs adhere to their local regulations.
Crafting HR Policies
It is always best when a company has set in stone HR policies that all employees are aware of. When everyone knows what the rules and expectations are while on the job, everyone can be treated fairly. Thus, a PEO can be instrumental in crafting the HR policies and handbooks that will apply to remote workers as well as to everyone else. Documenting this framework establishes a remote-work system that everyone follows and sets up a process to fall back to as your company grows and changes.
Benefits Administration
Another major reason why employees show up to work is because they rely upon the healthcare and retirement benefits that they earn for working there. Administering those benefits can be something taken on by the PEO as well. This will take some of the workload off of your shoulders and guarantee that everyone is able to receive the benefits that they are entitled to. PEOs offer benefits through an online portal, helping your people access their information from anywhere.
Data Security
Remote workers have access to a wealth of data that can potentially be vulnerable. Obviously, no one wants to see their data end up in the wrong hands, and that is why it is so critical to speak with remote workers about the important role that they play in keeping records safe. PEOs centralize data, so it stays in one secure place and doesn’t trade hands across the internet.
Independent Contractor Compliance
There is a special class of worker known as an independent contractor. They are not officially employed by the company, and they are not entitled to the benefits offered by that company. However, there are still some important workplace regulations that must be followed. A PEO can step in and make sure that the company they service is following all relevant regulations related to the work of independent contractors based on your location. They can verify that they are compensated for their hours and that overtime is properly documented to keep you in the clear.
Control Your Remote Work Compliance with ABO!
These are just a few of the ways that PEOs can step up and offer employers the opportunity to remove some of the workload from their shoulders and get back to handling the day-to-day operations of running the business.
ABO is an IRS-certified PEO with the expertise to assist you with the needs of your growing company and help put yourself in the best possible position to take care of the needs of your operations.
Reach out to ABO today to learn more about how we can help streamline your remote work efforts!
