PEOFirst up, a definition may be useful: a PEO is a firm that provides a service under which an employer can outsource employee management including employee benefits, employer liability and payroll with the PEO becoming the employer of record for tax purposes.
- Migration from umbrella; the employment model for umbrella and PEO is closely related and they both offer the compliance benefit of transparent payment of PAYE and NICs by the employee.
- Increased compliance complexity and risk; all legitimate operators in the temporary worker supply chain are facing increased legislation and greater risk in non-compliance. This has placed much greater scrutiny on employment/payroll arrangements where compliance is not 100% clear. PEO offers the lowest risk of non-compliance and is a completely transparent payment structure used by some of the largest employers in the world.
- The political environment has shifted, with an increased focus on employee engagement. The PEO model involves no additional costs for the employee and in some cases useful additional benefits for Gateway employees.
- Better technology; PEO providers such as Gateway now have access to volume payroll processing technology that is far superior to that available even 10 years ago. Gateway PEO uses GDPR compliant encrypted payslips easily accessible through the Gateway mobile app.
Provide the gateway to happy employees