Using peo to Offset Gas Prices On The Rise
How A Peo Can Help Stabilize Your Cash Flow When Gas Prices Are On The Rise
If you’ve gassed up your car in the last few months, you probably experienced a little bit of a shock as you watched the numbers keep on rising. You can hear people complaining at the pumps and getting all political, but lets be serious for a second…what impact is this having on businesses?
Now, imagine having to fill up an entire fleet of vehicles. You might end up looking something like this:
ut all kidding aside, industries such as trucking, shipping and logistics have been hit especially hard by the spike in gas prices. With diesel fuel clocking in at over $1 a gallon more than regular gasoline, companies in these industries are definitely feeling a lot of pain at the pump. And since their operating expenses are higher as a result of the increased cost of fuel, the prices of the products they’re transporting are also going up, which contributes to worsening inflation.
There are a number of reasons that the price of diesel is higher than the price of regular gas. For one, diesel is produced at a much lower rate than gasoline is – and there’s a great demand for it. Additionally, it is taxed at higher rates on both the federal and the state level to help compensate for the damage caused by the heavy-duty vehicles that run on diesel. Those two factors combined with the ongoing war in the Ukraine and the economic fallout from the pandemic mean that the companies that rely on diesel will continue to face financial challenges in the future.
Because the fluctuations in the cost of fuel are out of their control, business owners in diesel-dependent industries need to find ways to offset their rising operational costs so they can maintain a positive cash flow. The solution? It may be as simple as hiring a PEO.
A PEO, also known as a Professional Employer Organization, is a single-source provider of integrated services that allows business owners to outsource many of their administrative, HR, payroll and other employment-related tasks.
Let’s break down all the things a PEO can do to support your company:
- Human resources: When you work with a PEO, you’ll have access to HR professionals who can help with everything from onboarding and training new employees to overseeing benefit programs to creating an employee handbook of policies and procedures. Plus, they can assist with sensitive matters related to discrimiation and harassment to ensure your company is protected legally.
- Payroll processing: Paying your employees is obviously important but can be incredibly time-consuming. A PEO can take that burden off your shoulders by handling all tasks relating to tax compliance, new hire onboarding and departure, time reporting, compliance with labor laws, state and federal regulations, payroll-related tax filings and W-2, 940&941 withholdings.
- Insurance: If your company is in growth mode, you may be interested in expanding your business into other states. That means you’ll need to find insurance to cover you in your new location and that’s not always quick or easy. However, if you work with a PEO that is already licensed and has coverage in other states, the process can be much simpler and you can rest assured knowing that you’re protected from a licensing, regulation and compliance standpoint. Additionally, PEOs can help minimize the cost of workers’ compensation insurance and there are no deposits or audits with convenient pay-as-you-go policies.
- Risk management and safety: PEOs can reduce exposure to unneeded risks that may arise in the workplace by helping companies implement standard safety procedures. They can also conduct training so employees understand exactly what is expected to keep them safe.
- Health insurance: Small businesses can have a difficult time obtaining quality health insurance on their own and this can make it hard to retain talent – and to attract new hires. However, because PEOs are able to leverage economies of scale, they can connect small business owners with high-quality and affordable benefits that might be off limits to them otherwise.
For these reasons – and many more – a PEO could be the right choice for any company looking to save money and free up time to focus on revenue-producing activities.
“There’s so much going on in the world that we can’t control,” said Patrick Moraites, a partner and VP at Tampa-based Axis Group. “But by hiring a PEO, you’re taking a big step toward helping your organization stay afloat during these challenging times.”
If you’re interested in learning more about what a PEO can do for your company, the team at Axis is here to answer all your questions and help you make the right decision. Contact us to set up a no obligation consultation.