California, by itself, would be about the fifth largest economy in the world. And that makes perfect sense. It’s the world’s leading location for the entertainment industry, the home of Silicon Valley, and an agricultural powerhouse. This is just the tip of the iceberg. Opportunity is everywhere for California based startups and businesses.

Why Do You Need a California PEO Company?

Yet that same business environment can be confusing, especially from a labor law, payroll, payroll taxes, employee benefits and Human resources. There’s so much to know that its difficult for a business owner or manager to be up-to-date with all the latest information. This is where a professional employer organization (PEO) comes in. It does the HR work so you don’t have to.Making a selection can be difficult, and there is a lot to need to know about California PEO service providers. Fortunately, we have all the information you need right here.

By itself, California could be considered one of the world’s largest economies, with almost 40 million people, all of them requiring commerce. It is also a state with some of the heaviest regulations in the country. Your California business needs a PEO company robust enough to help you compete in the state and help your business comply with everything it needs to. Fortunately, we think the following will work:

1) Resourcing Edge

Founded in 2003 and serving clients across the country, Resourcing Edge is an experienced firm that is a mainstay in the industry and handles billions of dollars in payroll processing annually across thousands of clients. Perhaps useful to your growing business, they will work with practically any company, no matter how many employees you have. If your staff levels fluctuate, you do not have much to fear.

Also, given that California is a state with many specific industries, and many industries rarely found elsewhere, you should be glad to know that Resourcing Edge is focused on making sure clients receive industry-specific and client-specific solutions to their problems and offerings.

Resourcing Edge offers all of the usual PEO services, including payroll processing, competitive benefits for employees, workers’ compensation support, retirement options, and more. Pricing will vary, so we recommend getting a quote.

2) CoAdvantage PEO

CoAdvantage is one of the top PEOs in the country and one of the top PEO companies in California. Operating in all 50 states with decades of experience, they are a company under the umbrella of Morgan Stanley, and they have all the resources needed to help just about every California company get what is needed.

The most important thing for any business is finding the right people for the job and picking out the best people to lead, and CoAdvantage has the best team building services available. The information tools they provide to clients will give your business the tools needed to identify these top performers, a requirement in a busy California job market.

They do have all the standard PEO fare for your business, and you can feel confident in their payroll management and benefits administration services. Get a quote today to see if they will be a good fit.

3) Amplify PEO

Our last selection for California businesses is Amplify PEO, which is a full-service provider that can work with a business of any size and in just about any industry, which is helpful in California. They naturally can handle all the standard PEO tasks and offer highly competitive benefit options for employers to offer.

Amplify stands out for its excellent customer service, something we know you value as a business owner. You will always be talking to a human being, and you will always get a solution tailored towards your specific business and industry.

Something to note is that while they have the advantage in many other areas, they might not have some of the specialized services found in other providers. For most business with standard needs, however, they are absolutely worth your consideration.

High-Level Overview of California PEO Services:

PEO service providers can help companies in California in different ways. They consolidate all standard HR services from onboarding to employee termination. Some of the main services provided are benefits provision and administration for employees, payroll management, filing quarterly tax filings, managing workers comp, employee leasing, government compliance management (especially important in California) and employee risk mitigation. Most California PEOs will also help your business with recruiting, expense reporting, training new employees and much more. Additionally, by transferring your HR functions and payroll services to a PEO, you gain access to a large employee base that is grouped together for discounted pricing on benefits and workers comp. This lets your HR department control costs, benefits administration and act more efficiently.

Factors for Evaluation of a California PEO Service:

PEO services have many facets to them and all of them vary from company to company. They are all important and we’ve studied each while reviewing the market for the best all-around PEO option, especially in the state of California (not all PEOs operate equally in each state). 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
• – Workers compensation insurance
• – HR Outsourcing
• – Tax Administration
• – Regulatory Compliance

There are dozens of high-profile PEO service companies to choose that are in various parts of California, United States including Los Angeles, San Diego, San Francisco,  so it is important to get the fundamentals down and it was important for us to see which hr support services work best where.No matter which PEO you end up choosing, we will ensure you receive a full California-tailored PEO solution that fits your needs. Therefore, if a standard service is not mentioned in the recommendations above, please consider it as available.

Benefits Of Using a PEO In California

• 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 a burden. There are so many more interesting things to do in such a nice state. A PEO uses 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 state regulations, which is a larger problem in California than most other states. Know that you are safe having the checks and balances managed by the PEO’s system.

About PEO Companies in California:

What is a PEO? – A PEO (Professional Employer Organization) allows a business to outsource its employee management, have other HR tasks handled for them, and gives personnel management support when needed (most PEOs do this). They manage your payroll, tax forms and payments, insurance (health care benefits 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 issues and allow your business to provide more value to its employees, making it a more attractive employer.

How Much Does it Cost To Use A PEO in California? – 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. Many California PEOs might offer additional consulting services or additional options, in which case the cost may increase.

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 percent of 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 fee 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 four weeks.

Can I Get Health Insurance for Myself and My Family as the Founder? – Some PEO’s offer this option. Others don’t. You will want to ask when doing your comparison shopping.

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

Are There any Unique Facets about California PEOs? – California is a great market in which to find a PEO, and many providers will have offices in the states, if they’re not headquartered there. We recommend looking for a PEO you can easily communicate with. There are also more PEO services that can provide specialised advice for particular industries, so keep on the lookout for a PEO that tailors services to your type of business.

Conclusion

We understand that California is an economy in itself and trying to pick out a service represent the best of the best PEOs for the state was a difficult task. Nonetheless, we’re confident that one of the above options is the HR and payroll solution your business needs. What do you think is the best California PEO? Have you used one before? Do you have any questions you’d like to ask us about our provided information? Please leave a comment below, as we’d love to hear your thoughts.