Deciding to partner with a Professional Employer Organization, or PEO, is an important step for any small or medium-sized business who wants to grow their organization. The reason PEOs have become so popular in Hawaii, in particular, is that of the growing need for business owners to focus on running their businesses, letting the PEO manage HR and related functions.
Any company that is considering a PEO would do well to evaluate as many as possible, as PEO’s vary widely in their scope of services and client suitability. To help you make sense of all of the options, we’ve compiled a bit of information and have looked into most of the services for you.
To learn more about Hawaii PEOs and what you should look out for, keep reading below:
High-Level Overview of Hawaii PEO Companies:
Every PEO company can help your Hawaii business in different ways, although even in the middle of the ocean you can expect PEOs to do some things regardless of the specific provider. All of them will be happy to handle the standard HR tasks for all of your employees. The main services are payroll management, benefits procurement and administration, quarterly tax filings and payroll tax oversight, managing workers comp on a cash flow basis, and compliance and risk-mitigation services.
The vast majority of worthwhile Hawaii PEOs can also help your business with recruitment, training, expense reporting, and additional services depending on the provider and your industry. By working with a PEO you will also be able to transfer benefits responsibilities to the effect of a larger bargaining pool for workers comp and health insurance, leading to cheaper rates for your business. You will be able to expect a better and less expensive HR experience for your Hawaii business.
Factors for Evaluation of a Hawaii PEO Service:
PEO services vary by provider. This means there are many factors to take into consideration. We looked at each Hawaii PEO service in order to determine which ones might be the best match for your business. As part of that process we reviewed the following items and services for each 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 quite a few providers on the market, so you will want to know how to separate the best from the rest when looking for a fit for your Hawaii business.
No matter which PEO you select, we will make sure your business works with a full solution that fits all of your needs. Therefore, if a standard service or benefit is not mentioned in the recommendations above, please consider it as part of the package.
Benefits Of Using a PEO In Hawaii
Insurance Cost Savings – PEOs are often hired to save companies money in the long run. Those savings often come from lower health insurance costs. PEOs will leverage their large employee pools to get better rates and services for their clients when it comes to benefits.
Less Paperwork – Enjoying the nice breezes and views can be difficult when you have to stare at paperwork all day. A PEO will use their tools and platforms to reduce paperwork for your business.
Compliance and Legal – A PEO will manage all compliance and legal issues regarding employees, even specific Hawaii regulations. The PEOs systems will effectively and easily handle all related problems and assist you as needed.
FAQ About PEO Companies in Hawaii:
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 (for the most part). They will 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 PEOs are reduced HR costs and the use of their time-saving tools, platforms, and services. Additionally, they manage HR compliance and risk-aversion so you can rest easier. They generally allow your business to provide more value to employees (both current and future), making it a more attractive employer and one employees will want to stick with.
How Much Does it Cost To Use A PEO in Hawaii? – It generally costs between $1,000 – $2,000 per year per employee to use a PEO. Businesses with more employees will usually get lower rates.
How Does a PEO charge? – PEO’s generally charge a percentage of overall payroll or a straight admin fee per employee. We prefer PEOs that charge the admin fee, as those fees are clearer. PEOs that charge a percentage of payroll often have hidden fees and other issues.
Does it Cost Money to Switch to a PEO? – There is usually a startup fee which ranges from $1000 to $15,000, depending on the business.
How Long Does it Take to Get Started Once I Choose a PEO? – Startup time can range from three to six 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 will offer this option and others will not, so you will want to look into it further if this is an important factor for you.
As the Founder, Should I Pay Myself Using a PEO? – You should most likely be using the PEO service to do your own payroll, although this may vary based on your company.
Should I Know Anything About Hawaii PEOs When Searching for One? – The most important thing is whether the PEO service serves Hawaiian businesses. Many PEO services will say they serves the states, but they only mean the continental ones. Additionally, if you’re looking for onsite services, you’ll want to make sure they are offered on the islands as well. Outside of these main factors you’ll want to search for a PEO as anyone else would.
What is the Best PEO in Hawaii? – Hawaii businesses have unique and varying needs. This means that the best PEO might vary from business to business. Check out our state-based PEO guide here.
During your comparison of Hawaii PEOs, don’t forget to schedule your free, 15-minute consultation with one of our PEO specialists. After answering a few basic questions, you’ll get an expert recommendation of the top PEOs that are in alignment with your business goals.
To make the most informed PEO decision, you can contact us now or look more deeply into information on the services provided.