If you need expert HR or payroll help, want to make sure your business is complying with labor laws and regulations, or want to provide employee benefits, a PEO (professional employer organization) will help your company.
Texas companies know how to get business done and done well. On top of that, it’s a great time for economic growth in the state, with the state’s lack of red tape and support for business allowing for small business owners to expand at a rate rarely found elsewhere in the country.
And with a PEO, your company can get a boost and keep you and your managers’ minds focused on the tasks at hand and away from HR paperwork.
Yet which PEO service should you choose? Every business is different, and Texas itself has a unique business environment. We’re going to walk you through our thoughts, and then you can choose the best option human resources choices for your company.
High-Level Overview of Texas PEO Services:
PEO service providers can help each company in Texas in different ways. They consolidate all tactical HR services, payroll services, from onboarding to employee resignation. Some of the main services provided are benefits provision and administration for employees, payroll management, filing quarterly tax filings, covering workers comp on a cash flow basis, government compliance management and employee risk mitigation.
Most PEOs in Texas will also help your business 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 base that is grouped together for discounted pricing on benefits and workers comp. This lets your HR department become more efficient and also controls cost.
Factors for Evaluation of a Texas 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 Texas (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 and payroll taxes
- – Health benefits 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
There are dozens of high-profile PEO companies to choose from, so it is important to get the fundamentals down and it was important for us to see 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 needs. Therefore, if a standard service is not mentioned in the recommendations above, please consider it as available.
Benefits Of Using a PEO In Texas
Insurance Cost Savings – Companies use PEOs to save 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 insurance to get better rates for your business.
Less Paperwork – Paperwork sucks. There are so many better things to do as a Texas business owner. 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. Know that you are safe having the checks and balances managed by the PEO’s system.
FAQ About PEO Companies in Texas:
What is a PEO? – A PEO (Professional Employer Organization) allows a business to outsource its employee management, have other HR outsourcing 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 administration and workers compensation) and other benefits such as retirement plans, life insurance, tax administration, 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 tools and services. Additionally, they handle HR compliance 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 Texas? – 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. Pricing reviewed with 25 PEO’s some including ADP, Engage PEO, AbelHR, Trinet, Justworks, Insperity, Questco, Emplova, CoAdvantage.
How Does the PEO charge? – PEO’s generally charge a percent of overall payroll or an administrative services fee per employee. We prefer PEO providers 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. There is sometimes a co-employment charge
Does it Cost Money to Switch to a PEO? – Generally, there is a service charge/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 setup time is about four weeks. Sometimes there is an employee leasing cost.
Can I Get Health Insurance for Myself and My Family as the Founder? – Some PEO’s offer this option. Others do not. It also depends on the level of HR support you need.
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 Texas PEOs? – As a general rule PEOs will operate in Texas as they do elsewhere, but it should be noted that Texas specifically regulates PEOs, and requires a license, so you may wish to inquire about that when talking with a service provider.
What is the Best PEO in Texas? – Over 100 PEOs operate in Texas, so the decision can be tricky. Check out our state-based PEO guide here
If your business is in Texas, you are going to want to use a PEO service that knows how to operate in the Lone Star State. We’ve got you covered for all your HR Solutions.
Have you already tried out a PEO for your Texas business and have an opinion? Have any questions about the above information? Please leave a comment below and let us know your thoughts!