Professional Employer Organisation – PEO in Iceland
Have you ever wondered how major corporate giants manage all their administrative work like giving out salaries, ensuring medical insurance, rolling out employment benefits and pension facilities for its employees? Most businesses, big or small, run with the help of collaboration. After a point, to become a leader, it is very important to delegate tasks. The job of a successful person or brand is not to do all the work by themselves but to share responsibilities and supervise well whether the job delegated is being done. This not just reduces the workload for the company and allows them to focus on the ‘real job’ but also allows other organisations to generate revenue and contribute to the economic growth of a country in turn. In most cases, these administrative tasks are outsourced to Professional Employer Organisations or PEO in Iceland.
What are Professional Employment Organisations?
A PEO is a B2B service company or firm that allows its clients, which in most cases are corporate houses of all sizes, to outsource or delegate to them a variety of employee management tasks. These tasks include pretty much everything under the sun like employee benefits, human resource consulting, taking care of payroll and worker’s compensation, recruiting, risk management, and/or training. A PEO typically charges a service fee based on a percentage of the employee’s total compensation. The role of a Professional Employer Organisation is basically to handle the administrative duties which a company of a specific niche may find difficult to perform.
The PEO enters into a contract-based co-employment agreement with its clients and becomes through co-employment, the PEO becomes the Employer of Record (EoR) or virtual head in terms of administrative and HR related work like taking care of tax purposes through filing payroll taxes under its own tax identification numbers. As the legal employer of the workers, the PEO is given the responsibility of withholding proper taxes, paying unemployment insurance taxes and providing workers’ compensation coverage. The power of instructing the workers about regular day-to-day work, however, continues to stay with the client company
PEO in Iceland
The role of a PEO becomes even essential when the client in question is a global brand and has employees working for them from across the world. One such country which has expanded volumes in terms of business and enterprises is Iceland. Despite being a small European country, Iceland is home to many major companies, which many a times also have global reach. Hence, the role of PEO in Iceland becomes extremely essential for these newly born start-ups and global brand in the country.
The PEO in Iceland is a fairly new model, to facilitate this job of handling administrative and human resource-related work on behalf of companies. Swapp Agency is a leading PEO company in Iceland and has household name clients in their portfolio, everything from big tech companies to financial giant corporations.
Besides handling the regular jobs, they also look into issues where you have a contractor overseas and you want to convert them to an employee, your company is in a non-compliant relationship with your contractor, your company wants to invest in these resources and show your commitment to them by converting to employees, your contractors themselves are asking for an improved status afforded to full time employees, you are looking for a cost effective solution to convert your international contractors to employees, etc.
In today’s modernised, global world, the role of PEOs have become extremely important. Success today only comes when two ideas with their own expertise collaborate and form a joint venture. In business and in life, these correct collaborations are what pushes us forward.
Contact Swapp Agency for any kind of assistance in Iceland.