March 01, 2011 Articles

Professional Employer Organization Services for Law Firms

The benefits of a PEO inlcude outsourcing payroll and payroll tax administration and arranging group insurance plans.

By Samantha Bond

There are many good reasons to enter into the legal profession. Becoming an employer by hanging out your own shingle or becoming a partner in a private practice both come with side effects directly attributed to the employees of the practice. Side effects (like headaches, nausea, itchy rashes, etc.) are typically described only in the small print for a reason; employees can be a needy bunch, wanting paychecks and insurance benefits, and somebody has to handle it all. But that someone does not have to be you. There is a better, more cost-effective way.

A Professional Employer Organization (PEO) is a company organized to perform the ongoing functions of payroll, payroll tax administration, and deposit of taxes out of its own accounts. This function differs from other payroll providers in that the employment relationship with the employee now becomes a shared role that is intended to be long-term and not temporary. In other words, the PEO employs the employees who work in your firm under your direction. These are the exact same employees you have now.

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