All You Need to Know About Professional Employer Organization (PEO) in the Philippines
In order to focus on their core strengths, such as developing, enhancing, and selling goods and services, small and midsized (SME) business owners frequently turn to PEOs for assistance with important and strategic HR management. You might be able to expand your company while feeling more secure doing so with the professional and strategic advice of PEOs. Let KMC help you with these!

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What is Professional Employer Organization (PEO)?

What does a PEO do?
How Professional Employer Organization (PEO) Works?
After learning the basics of PEO, it’s time to take a closer look at its process and service inclusion. This knowledge is crucial for business owners looking into working with PEOs to ensure it’s in line with their company vision.
Process
Professional Employer Organization (PEO) continually seeks employees for talent insourcing at a mutual agreement on the rate (usually hourly or monthly). Under this arrangement, it is within the PEOs responsibility to handle employee management, behavior, tax compliance, and all employment-related matters.
Meanwhile, the client company is responsible for managing the daily tasks of their remote teams from the PEO. And while PEOs provide insource talents to the client company, they are still the ones recognized in the employer of record (EOR).
In this manner, the client company benefits from the services done by the employee without needing to handle any human resources work.

HOW PEO WORKS?
After learning the basics of PEO, it’s time to take a closer look at its process and service inclusion. This knowledge is crucial for business owners looking into working with PEOs to ensure it’s in line with their company vision.
SERVICE INCLUSIONS
Professional Employer Organization (PEO) offer various professional services essential to a business, including a number of administrative tasks. Below are a few service inclusions a company can get from a PEO :

Human Resources
These services include but are not limited to employment, training, and employee maintenance. It also covers the materials and assessments needed for the employee onboarding process.

Payroll Assistance
It includes the management of employee payroll and the company’s tax responsibilities (i.e., W2 and 1099 form submission).

Work Compensation Claims Reassessment
Your PEO of choice can handle the reassessment of compensation claims. This is to ensure the accomplishment of all necessary forms and investigate the purpose and validity of a worker’s claim.

Benefits Planning
Benefits planning involves the management of different insurance types, retirement plans, and employees’ paid leaves.

Brokerage Services
The PEO can connect and refer the client business to other PEO specialists.

Risk Management
It includes ensuring the company’s compliance with government policies and rules. It involves the task of conflict management in handling employee injuries or conflicts on payrolls.
Using PEO in the Philippines: What are the Benefits?
The Philippines is one of the top places to look for PEOs when it comes to cost efficiency. The country is booming with young, reliable professionals that can be an asset to your labor force. Below are some of the benefits of using PEO in the Philippines:

Recruitment and Hiring
Minimize Operational Cost
Working with a PEO enables a business to save on operational costs. It is because it becomes the PEO’s task to handle administrative and HR-related tasks. Thus, it leaves room for the business to focus on boosting productivity, gaining maximum profit, and growing the business overall.


Seamless Management of Payroll & Tax
Reliable Compliance Assistance
Laws and regulations on employment are constantly getting modified. And of course, the task of keeping up with all these changes involves money. Fortunately, PEOs also cover assistance on the compliance of businesses to employment laws and regulations. They can provide the company with HR professionals that can guarantee employee compliance.


Strengthen Employee Development & Benefits
The principal goal of the company-PEO relationship is to provide employees with convenient and practical benefits while lessening workload stress. A PEO offers benefit plans to the business’s employees. These plans include a number of coverage, such as medical, dental, vision, life insurance, as well as retirement plans.
With this, the business gains more opportunities to benefit from talent insourcing and an enhanced workforce. Being able to focus on more critical tasks leads to increased productivity and quality of work within the company’s core team.
Why Businesses Subscribe to PEO Services?
How does PEO help businesses?
Business owners can focus on growing their company through onboarding quality employees provided by PEOs. This co-employment arrangement allows businesses to minimize administrative work while ensuring that the employment process remains compliant with laws and regulations.
A PEO can especially be a massive benefit in terms of the work environment for small businesses. Having an expanded network of remote teams boosts productivity, cost-efficiency, localized support, and business development.
Who should work with the Professional Employer Organization (PEO)?
Need a Professional Employer Organization (PEO)? Work with KMC now!
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