If you have been paying any attention at all to business news over the last 5 years, you might have seen a growing trend now reaching the mainstream marketplace, the gig economy. There are many reasons for the idea of “the gig” being such an attractive way to make money for most workers; particularly millennials. What does that have to do with working with a PEO?
For some, the gig economy is actually replacing traditional 40-hour work week type jobs. Instead of finding one full-time job, one place to go for one stream of income, they are doing two or three different part-time or gig jobs to cobble together a decent income. This is not bad news. For those who are not interested in doing the same thing day after day, this works well. These types of gig jobs do a lot to make others who do have 40-hour work weeks or who own businesses live a much more convenient life. You can find an app to literally help you do anything and someone will drive it to you for nominal fee. You can even Uber McDonald’s to yourself if you are feeling that lazy.
With that in mind, your gig economy workers may be just the people you could hire part-time or seasonally to help you grow your small business. This is great news as prior to the rise of the gig economy, it was hard to find anyone who would take a part-time job with no benefits unless they were stay-at-home parents. How are you going to manage the worker who doesn’t necessarily see themselves working for you as much as working for themselves to provide a service to you?
When do you pay someone on a 1099 and when is it a W-2? What are the upsides and downsides for either? These are great employment or tax law questions that working with a PEO will easily help you answer because your compliance with tax and employment law is their responsibility. It’s peace of mind in gig economy times.
The sister to the gig economy worker is the remote worker. Sometimes they are the same person. It is pretty attractive for many who prefer this way to create income to be able to work remotely for one company and then be able to do their gig jobs when they have time and without anyone raising an eyebrow about it.
Remote workers are very often be in other states. When you factor in workers who are neither working nor living in the state your business is in, you can run into some pretty interesting legal and tax questions regarding their HR compliant employment with your business. How do you pay state employment tax for a worker that is not in your state? What are the employment laws in their state versus yours? All this and more is handled efficiently with a PEO. You don’t have to limit yourself to talent living near where your business is. You can hire anyone, from anywhere to work for you and sleep well at night knowing that working with a PEO in a remote employment scenario isn’t anything to sweat.
How do some small businesses have such a big reach and be able to handle it all so well? Creating jobs with the gig economy and remote worker in mind is a great way, but being able to nimbly shift gears when you need to is the other. When cash flow is restricted and operating expenses put the squeeze on, growth seems out of reach. Thinking about how to do more with less releases that pressure and allows a small business to do more.
Are you doing all your own HR, dealing with employee issues, and working with a payroll company to keep things moving with your employees? Doing what you love for yourself is one thing, but most small business owners quickly realize the people management side of owning your own business is harder than they thought. How are you keeping up with it all?
For many small business owners, working with a PEO was the relief they were looking for. HR services, payroll processing and management, along with excellent benefits for the small business is pretty much unheard of if you are not working with a PEO.
How do you find a PEO to work with? Working with a PEO broker like PEO Spectrum is like working with your friendly neighborhood insurance agent. They find you the right PEO with the right plans, at a budget you can afford so you can grow your business without worrying about your employees. Want to find out if working with a PEO is right for you? Call PEO Spectrum today.
If you’d like to find out more about how PEOs can help you provide great benefits and payroll management at less than you are paying now, contact us today for a free consultation.
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