Illinois: the home of Chicago, a large agricultural powerhouse and connected to the great lakes. It’s nearly always been an economic powerhouse in America, and as the economy grows, opportunities come with it. Small businesses and startups can find more opportunities, and that often means taking on more employees.
Yet doesn’t that mean more HR work, payroll management, and other problems? You don’t need to concern yourself too much with that if you employ the services of a PEO.
You can learn everything you need to know about PEOs and what Illinois PEOs might have in store for you by reading the below information:
High-Level Overview of Illinois PEO Companies:
Illinois businesses can benefit from PEOs in many different ways, although you will want to look at a few main features first and foremost. A good PEO service provider will be able to manage standard HR needs from onboarding to offboarding, without much difficulty or work on your end. Other major services provided include benefits procurement and administration, payroll management, managing workers comp on a cash flow basis, handling quarterly tax filings, and risk mitigation and regulation compliance to help prevent workplace incidents.
You will also be able to expect most PEOs to help your business with recruiting, expense reporting, training, and more. And since the PEO service provider will be pooling your employees with many others when negotiating benefits, you can expect competitive rates on health insurance and workers comp coverage.
Factors for Evaluation of an Illinois PEO Service:
There are quite a few things to consider when evaluating a PEO service in Illinois. Nonetheless, every major facet of a provider is important, and we’ve looked into everything to make sure that you get the very best information possible. We considered each of the following points when looking at 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 many PEO service providers on the Illinois market, so you will need to know the vital factors to weigh at when selecting your Illinois provider.
We want to make sure that regardless of which PEO you end up choosing that you will work with a full solution. As such, you should consider available any standard service or benefit that is not mentioned in the recommendations above.
Benefits Of Using a PEO In Illinois
Insurance Cost Savings – Your Illinois business can save money by using a PEO, mostly from lower health insurance costs. PEOs can more easily negotiate with benefits providers considering their larger pool of clients to bargain with.
Less Paperwork – Paperwork is simply terrible. A PEO will keep paperwork for you and your business at a minimum.
Compliance and Legal – A PEO can manage all compliance and legal issues regarding your employees, and also work with state or city regulations. The PEOs experts and systems will handle all related problems and let you rest easy at night.
FAQ About PEO Companies in Illinois:
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. 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, and they will do so with expert care.
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. They generally allow your business to provide more valuable benefits to employees. This makes your business a better place to work at.
How Much Does it Cost To Use A PEO in Illinois? – It generally costs between $1,000 – $2,000 per year per employee to use a PEO. The more employees your business has, the better rate you will get.
How Does a PEO charge? – PEO’s generally charge a percentage of overall payroll or a straight admin fee per employee. PEOs that charge the admin fee are preferred, as those fees are much more transparent. We find that PEOs that charge based on payroll have hidden fees and are more confusing to work with.
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 structure and size of your business.
How Long Does it Take to Get Started Once I Choose a PEO? – The time it takes to start up your services can range from three to six weeks, depending on the PEO. The average time is about four weeks.
Can I Get Health Insurance for Myself and My Family as the Founder? – Some PEO’s will offer this option. Others will not.
As the Founder, Should I Pay Myself Using a PEO? – This can vary depending on your company and its organizational makeup. That being said, in most circumstances, you should be using the PEO service to do your own payroll.
Is There Anything I Should Know About Searching for a PEO in Illinois? – You will want to make sure that your business works with a PEO that knows any state regulations, especially if you are in a highly regulated industry. Additionally, Chicago businesses will want to find a PEO that can navigate city regulations as well. Otherwise you will likely find a great PEO for your business.
What is the Best PEO in Illinois? – Where some PEOs are generally better than others, we have found that different PEO service providers suit different types of businesses best. Check out our state-based PEO guide here.
We want your Illinois business to succeed and grow at the rate you’d like, and without any problems in the process. With one of the above recommended PEO companies, you will be able to stay focused, solve HR problems, and keep things easy so your company can deliver on its mission.
Do you have any additional thoughts on any of the above services? Have you tried any of them in the great state of Illinois? If so, please leave a comment below and tell us your thoughts, as we would love to hear them.