Alabama is one of the biggest and busiest states in America. Millions of people hustling and bustling, working to make their lives better and to better the companies they work for. There are some of the biggest companies in Alabama and one of the reasons they’ve seen such great success is due to their staff. Staff can make or break a company.

Choosing the correct staff can be a difficult task to get right but the good news is that there are companies that assist you in hiring and managing staff. These are known as Professional Employer Organizations or PEO’s. Instead of choosing between numerous different potential employees, all you need to do is choose the right PEO.

To give you a better idea of what a PEO can do for you, we have listed some more information on Alabama PEOs below.

High-Level Overview of Alabama PEO Services:

PEO service providers can aid Alabama businesses in different ways. They can handle all of the usual HR tasks and services from onboarding to employee termination. Some of the main services managed are benefits provision and administration for employees, payroll management, filing quarterly tax filings, managing workers comp, government regulation compliance management, and employee risk management and damage mitigation.

Most Alabama PEOs will also help your business to at least some extent with recruiting, expense reporting, training new employees and much more. Additionally, by transferring your HR functions to a PEO, you gain access to a large employee bargaining collective that is grouped together for discounted pricing on things such as benefits and workers comp. This lets your HR department control costs more easily and efficiently.

Factors for Evaluations of an Alabama PEO Service:

PEO services have many facets to them, and they each vary by provider. Each facet is important and we’ve studied every one while reviewing the market for the best all-around PEO option, especially in the state of Alabama. We’ve reviewed the following features and services when looking at each individual PEO:

• – Tax processing
• – Payroll processing
• – Health insurance options and support
• – HR regulation compliance assistance or management
• – HR management and consulting support
• – Recruiting and onboarding support
• – Safety compliance and risk management
• – Time, attendance, and productivity tracking tools
• – Customer service and feedback
• – Additional features and specializations

There are many high-profile PEO service companies to select from, so it is important to know the main factors just like it was important for us to review which services work best where.

No matter which PEO you end up choosing, we will ensure you receive a full PEO solution that fits your Alabama business’ needs. Therefore, if a normally-offered service is not mentioned in the recommendations above, please consider it available.

Benefits Of Using a PEO In Alabama

Insurance Cost Savings – Companies use PEOs to save time and money. Most of the savings come from reduced insurance costs for their business. By using a PEO, you get to leverage their large pool of client employees to get better rates for your business on a variety of items, most notably health insurance.

Less Paperwork – Paperwork is hardly anyone’s idea of fun, especially when there are more important tasks to be taking care of. A PEO utilizes their technology platform to minimize the amount of paperwork your organization has to manage.

Compliance and Legal – A PEO manages all compliance and legal issues regarding your employees, even the most confusing of federal or state regulations. Know that you are safe having the checks and balances managed by the PEO’s system.

FAQ About PEO Companies in Alabama:

What is a PEO? – A PEO (Professional Employer Organization) allows a business to outsource its employee management as well as other HR tasks, and gives personnel management support when needed (most PEOs do this). They manage your payroll, tax forms and payments, insurance (health care and workers compensation) and other benefits such as retirement plans, life insurance, long-term disability insurance, vision insurance, dental insurance, employee wellness programs, and on-boarding new employees.

What Are the Benefits of Using a PEO? – The main benefits of using are PEO are reduced HR costs and their time-saving measures and services. Additionally, they handle HR compliance tasks and allow your business to provide more value to its employees, making it a more attractive employer to stay with.

How Much Does it Cost To Use A PEO in Alabama? – Generally, it costs between $1,000 – $2,000 per year per employee to use a PEO. The more employees you have, the lower the cost can go. Some Alabama PEOs might offer additional services, increasing the price.

How Does the PEO charge? – PEO’s generally charge a percent of overall payroll or an admin fee per employee. We prefer PEO’s that charge the admin fee because those fees are more transparent. We find that PEOs that charge a percentage of total payroll have more hidden fees when it comes time to pay the bill.

Does it Cost Money to Switch to a PEO? – Generally, there is a setup charge which ranges from $1000 to $15,000 depending on the size and complexity of the business.

How Long Does it Take to Get Started Once I Choose a PEO? – It can range between 3-6 weeks, depending on the PEO. The average time to set up is about 4 weeks.

Can I Get Health Insurance for Myself and My Family as the Founder? – Some PEO’s offer this option while others don’t. This is something you will want to look into for each service provider you’re interested in.

As the Founder, Should I Pay Myself Using a PEO? – While this may vary depending on the structure of your business, you should likely be using the PEO to do your own payroll.

Is There Anything I Should Know about Alabama PEOs in Particular? – PEO serivce providers themselves are regulated by a series of acts and registrations, securing your business against predatory practices. We recommend looking into those laws in order to better educate yourself. Additionally, you might want to see if PEOs have any services or considerations towards employees working in the at times rough Alabama climate.

What is the Best PEO in Alabama? – This can vary based on your region and the size of your business, but there are a few companies that rise to the top. Review our state-based PEO guide here

Conclusion

A lot of Alabama business owners find themselves holding back from increasing their staff because of the stress and the headache it can bring. Whether you have a lot of people on your team or you are just beginning to grow your company, the thought of managing more and more people is a daunting one.

Payroll, benefits, labor laws, rotas, holidays and much, much more need to be thought about when hiring one person, let alone hiring ten people. There is no reason to put yourself through that stress when you can hire an organization to do all that for you. This is why PEO’s are the answer.