What is a PEO, and how does it help your business in Cameroon?
A professional employer organization (international PEO), or an Employer of Record (EOR), is a type of full-service human resource outsourcing known as co-employment. Here, the PEO performs various employee administration tasks, such as payroll and benefits administration, on behalf of a business. Some PEOs also have strategic services.
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Why use a Professional Employer Organization?
With the expert guidance of a PEO, you may be able to grow your business and have peace of mind that you are more protected while doing so. PEOs typically do the following:
Payroll and tax filing
PEOs process payroll and, in some cases, can pay local, state, and federal employment taxes. Many also integrate payroll with time and attendance, which helps reduce duplicate data entry and errors.
Benefits administration
A co-employment arrangement often provides access to high-quality, cost-effective health insurance, dental care, retirement benefits, and other employee perks. The PEO will usually handle the employee enrollment for these benefits and process claims for you.
Compliance
PEOs typically have compliance experts who can help you protect your business from fines and penalties. Their expertise may include payroll tax law and reporting requirements, unemployment insurance, workers' compensation, hiring, and HR compliance.
Talent management
Some PEOs offer end-to-end talent services, like recruiting and strategic hiring, employee training and engagement, and performance management.
Risk and Safety
In addition to workers' compensation insurance, PEOs sometimes provide safety audits and training programs to help you limit claims. They may also assist with Occupational Safety and Health Administration inspections.
Human resource support
Often, a PEO has HR professionals who provide HR services and support. If you already have an in-house HR person or team, the PEO partners strategically and administratively with them.
PEO for Small Businesses in Cameroon
Small and midsized business owners often turn to PEOs for support with critical and strategic HR management to focus on their core competencies, including creating, enhancing, and selling the products and services that made their names. Learn more about how a PEO can benefit small businesses.
Help reduce your employer's liability.
By partnering with a PEO, you may be able to mitigate some of the liabilities associated with being an employer. For instance, ADP TotalSource® provides unparalleled support through unforeseen circumstances and offers a legal defense benefit if you follow our guidance but still get sued by an employee (subject to terms and conditions).
Go beyond HR administration.
Some PEOs offer data analytics and benchmarking services that provide insights into your workforce. With the correct data and HR expertise, you may be able to better answer critical questions.
How PEOs work in Cameroon?
The business and the PEO share specific employer responsibilities in a co-employment relationship.
The PEO typically processes payroll, withholds and pays payroll taxes, maintains workers' compensation coverage, administers employee benefits, and provides human resources guidance. This leaves you to manage regular business operations, like providing products and services to customers and making decisions about which employees to hire or terminate.
How to choose a professional employer organization in Cameroon?
To select the right PEO for your business, shop the co-employment market just as you would for any other strategic business need. Look for PEOs that:
- Have a strong track record and fiscal stability
- Can meet the unique needs of your business and employees
- Provide comprehensive support and compliance expertise
- Offer services and coverage where you do business.
- Supply references from other clients in your particular industry
- Are accredited by ESAC or certified by the IRS
What kinds of businesses benefit from PEOs?
Small and midsized businesses tend to be in co-employment arrangements the most, but larger organizations can also benefit. In fact, PEOs are a good fit for almost all industries, including, but not limited to:
- Real estate and property management
- Computer services and technology
- Securities brokers and dealers
- Engineering services
- Accounting, auditing, and bookkeeping
- Health services
- Legal services
- Management consulting services
- Business services
- Manufacturing
- Plumbing, HVAC, electrical and other trades
- Insurance
- Wholesale
- Nonprofits
What does EOR or PEO not do?
Although a PEO may handle HR administration, that doesn't mean you cede ownership or complete control of your organization to them. A PEO will not:
- Make decisions regarding your business independently
- Help with marketing, sales, or product distribution
- Dictate pay rates, hours, or schedules
How Much Do Employer of Record (EOR) Services and PEO For Business Cost in Cameroon?
When shopping for a PEO or EOR in Cameroon, you will often have to provide information about your workforce and your existing or desired benefits to get a price estimate. PEOs in Cameroon typically charge by a percentage of payroll, but some base their fee on the number of employees you have. The average price for EOR or PEO in Cameroon is 130,000 XAF to 260,000 XAF or $200 to $400 per employee per month or less.
Types of PEOs
Although there is only one type of PEO, known as co-employment, employers remain confused about the business model. This misconception is large because employee leasing has been incorrectly used to describe PEOs and their services. In fact, some state legislatures continue to refer to PEOs as a type of leasing in their statutes.
Employer of Record (EOR) Organizations and PEOs Who Offer Services in Cameroon
The following companies offer Employer of Record (EOR) Services and PEOs in Cameroon: