Florida PEO’s simplify operations for the Construction industry. Many general contractors look to PEO’s to manage human resource functions for their businesses. Smaller construction companies simply do not have the resources to hire a human resources staff to handle issues regarding federal and state regulatory compliance, payroll tax calculation, and proper insurance coverage. PEO’s eliminate the need for management of these issues by the officers of the company. A construction company can outsource all of these tasks to a PEO for a fraction of the cost of hiring and maintaining an in-house human resource department. The PEO technically “hires” the construction companies employees and becomes the employer of record. The PEO assumes liability for the employees since the are technically the employees of the PEO. The construction company maintains managerial control over the employees. They still decide the daily responsibilities of the employees and who gets hired and fired. The PEO insures that the construction company is in compliance with all applicable labor laws, calculates and pays payroll taxes under its FEIN number, and covers the employee under its worker’s compensation insurance policy. They would calculate and issue W-2s at the end of the tax year as well. This streamlining of non-revenue driving operations allows the construction company more time to concentrate on acquiring new business and managing construction projects. The time spent maintaining the business can then be shifted towards growing the business and increasing revenue. The simplification of the management process is a high priority for many owners of construction companies, PEO is the way to achieve that goal effectively.
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