Business finance « Fresh Idea

19Oct/090

PEO Payroll Services

A PEO (Professional Employer Organization) can efficiently take over the HR responsibilities of businesses. It simplifies HR processing, enabling businesses to focus on their core responsibilities. Employers can focus more on profit generating tasks such as increasing productivity and reducing costs, rather than setting apart a large amount of their resources for hiring, training and managing the workforce, administering their benefits, processing payroll, assessing their performance, and administering Workers' Compensation. PEOs establish a co-employment relationship with the client company by which they share the employer responsibilities.

So you think PEO services are all the same? Not quite. In fact, not by a long shot! Unfortunately, I've noticed a dramatic increase in conversations with employers who were led to believe their PEO company provided services they ultimately found not to be available. Perks like online payroll and employee benefits are not included with every PEO service! Each employee leasing company has its own available options, so it is extremely important that an employer knows which benefits are most important to his/her company.

And payroll outsourcing services are the services provided by payroll outsourcing companies to their clients. Payroll outsourcing includes receipt and analysis of payroll data, reporting the payment of payroll taxes, issuing payment and reports to employees and reporting data to end user. Payroll outsourcing services provide a ready solution in areas that are critical to the success of a business. They undertake the back office accounting and payroll work for all their clients and create a local presence by providing routine consultation and tax return. Payroll software provided by the outsourcing company will enable you to transmit your payroll data securely, easily and efficiently through the internet.

9Oct/091

Factoring Fraud in US

All industries have fraud issues, but during the latest economic downturn, there has been an increase in factoring fraud cases. Factoring fraud is increasing significantly because factors work on high volumes and small margins. But before learning more, it is important to first understand what factoring means. There are many terms for factoring including invoice discounting, invoice factoring, accounts receivable financing, and so forth. Factoring company have been around since the first business in Mesopotamia 4,000 years ago.

Factoring as a business strategy is rarely mentioned in a company's business plan, it is truly one of the best kept secrets in business and can mean the difference between growth and failure. Fraud as related to invoice factoring is quite challenging for the professionals in this specialized area. As an example, when a prospective client has a bad personal credit history, factoring companies must be on alert.

Furthermore, factoring fraud is also the result of fictitious invoices being raised and sold to factors. The fraudsters use technology to perpetrate and control complex frauds, particularly in foreign countries. One of these scams involves the non-payment of large amounts of VAT, which is known as carousel fraud affecting innocent traders and funders.

Some of the bigger companies may also have employee directories on their websites or main lines, providing a good source for checking the title of the person signing the notification. You can also simply make a call to the reception desk at most companies and find out the same information. Ask for the extension and the position title listed rather than the person's name.

Filed under: Business finance, Loan 1 Comment

11Jun/090

Purchase Your Policies

Disability insurance (DI) can help alleviate the financial burden by replacing a portion of your income if you become disabled. Be prepared for the uncertain economic times that could result from a disability by taking time to assess your DI coverage. Disability insurance protects your ability to earn a living. Especially in uncer-tain economic times, don’t underestimate the importance of insuring your paycheck.

Many employers offer group coverage without a medical exam if you sign up during the initial enrollment period. Some preexisting conditions may be excluded from group coverage for up to two years. Group DI (Disability insurance) is generally less expensive than an individual policy because most employers pay a portion of the premium. Some plans have a portability option that allows you to convert your group coverage to an individual policy when you leave your job.

You can purchase individual disability insurance directly from an insurance company or through an insurance broker. Unlike group insurance, you have to go through underwriting to get the policy. One of the greatest benefits of individual DI is that changes in your health, employment, or occupational class don’t affect your coverage after the policy is issued. Even if you become uninsurable in the future or switch to a risky occupation, your individual policy remains in force as long as you keep paying the premiums.

Don’t forget about taxes! If you pay the premiums for your policy, the benefits you receive are generally tax-free. If your employer paid part or all of the premiums, part or all of the benefits are taxable.

Filed under: Business finance No Comments

1Mar/091

Obtaining Financing

Commercial lenders, such as banks and finance companies, expect to see a business plan before they will lend money to a business. The same holds true for government lenders. Even when there is sufficient collateral to pledge as security for the loan, a business plan is still likely to be required because it shows where the business is going and how the money will be used.

A business plan will be more important if you’re seeking investment capital. Investors, especially venture capitalists, tend to be more demanding than lenders because their risks are greater. Unless a plan can convince them that financing a business will enable them to earn a substantial return on their investment.

Filed under: Business finance 1 Comment

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