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Published on Oct 22
The gig economy is growing and it’s here to stay. Approximately 57 million people, or more than one-third of the American workforce, are in the gig economy. The gig economy presents its own set of unique challenges for human resources (HR) professionals. With the additional paperwork, stricter compliance regulations from state and federal regulators, and the high turnover of temporary workers that come with the gig economy, many companies find that professional employer organizations (PEOs) are a huge asset in helping to navigate these challenges. Find out more about how PEOs can help you address the HR concerns you may have as your business enters the gig economy.
Helping manage the workload
PEOs are able to help minimize your daily workload and paperwork associated with gig workers. Often gig workers are in and out of your company quickly, and dedicating hours of your valuable HR staff’s time to onboarding and processing these temporary workers isn’t the best use of time or talents. By taking on payroll, employee benefits administration, risk management, compliance with regulatory issues, and training, PEOs leave your HR staff more time to focus on ensuring that gig workers are engaged, feel part of the culture of the company, and are adequately prepared to do the job expected of them.
In addition to alleviating workloads, your PEO can also help you assist with risk management and compliance. With constant changes to regulations and laws governing employment, your HR department may not always have the time or resources to navigate these updates. Your PEO partner can help you manage compliance and keep you up to date with all regulations. From producing employee handbooks to keeping you ACA compliant, your PEO can provide assistance and advise across all areas of compliance.
In addition, your PEO will also offer compliance support for government tax and reporting forms. These include employer payroll tax filings, W-2s and 1099s, COBRA forms, EEO-1, and others. Removing these types of time-consuming tasks from your hands allows you to focus on the overall management of your business.
Your co-employer will also manage employment-related risks. Unemployment and workers’ compensation claims are a fact of life in business, but your co-employer will take on the burden of administering these tasks for you. When an unemployment claim is made, your PEO will handle the paperwork and follow-up. In the event of an employee lawsuit, the co-employers EPLI coverage extends to you, providing additional safeguards for your business.
By partnering with a PEO system, businesses can manage these employees more efficiently, and ensure that any changes from the last time that person was hired or when a new person is hired are covered in one main database. It also means that employees won’t stay in the system mislabeled; a big problem with the IRS. A PEO partner can help you understand how each gig worker should be classified; whether as a standard W-2 employee or a 1099 independent contractor.
Let Sheakley help you navigate the gig economy
From managing the onboarding and payroll process to keeping you compliant, your PEO partner can help you take advantage of the great benefits of the gig economy. Sheakley’s HR and PEO professionals can alleviate many time-consuming tasks and free up your HR team to manage the daily needs of your team, all while keeping you compliant with federal and state employment laws.
Schedule your free consultation with a Sheakley PEO professional today. For more in-depth information about PEOs, download our What is a PEO e-book today. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. Join in the discussion by commenting below.