To start or grow a business in Kentucky is a great idea, particularly if you can manage to reduce costs and streamline operations. By now, it’s no secret to Kentucky business owners that using a Professional Employer Organization, or PEO, to free up time, money and other internal resources is a great way to foster ongoing business growth.
If you are looking for a PEO to partner with, you owe it to yourself and your business to evaluate as many PEO providers as possible. In Kentucky specifically, there are dozens of options you could consider on your own, which could take weeks. Instead, rely on this review of companies that you can consider as HR outsourcing partners for your business.
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To learn more about finding the best PEO company for your Kentucky business, continue to read below:
High-Level Overview of Kentucky PEO Companies:
Kentucky businesses can benefit from PEOs in many ways depending on what your business needs, but there are a few factors you will want to take a look at first and foremost. A good PEO service provider will be able to manage any standard HR needs that might pop up. Other major services provided include payroll management, benefits procurement and administration, managing workers comp on a cash flow basis, handling quarterly tax filings, and compliance support.
You will also be able to expect most PEOs to help your business with personnel recruiting, expense reporting, additional training, and additional services as needed. And since the PEO service provider will be combining your employee pool with many others when negotiating benefits with providers, your business will get health insurance and workers comp coverage at a reduced rate.
Factors for Evaluation of a Kentucky PEO Service:
Kentucky PEO service providers have a lot of factors to consider. We’ve looked into everything to make sure that you get the information you need, as each facet is important. We considered each of the following services and features when reviewing each PEO we looked at:
- – 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 PEOs to be found in Kentucky, so it’s important to know how to evaluate them by their merits.
We want to make sure that regardless of your final selection 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 Kentucky
Insurance Cost Savings – Kentucky businesses can reduce costs by using a PEO, mostly through better health insurance rates. PEOs can more effectively negotiate with benefit providers due to their large pool of client employees.
Less Paperwork – Paperwork is simply terrible. A PEO will work to keep that to a minimum.
Compliance and Legal – A PEO can manage all compliance and legal issues regarding your employees, including those caused by local regulations. A good PEO will allow you and your managers to rest easier each evening.
FAQ About PEO Companies in Kentucky:
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.
What Are the Benefits of Using a PEO? – The main perks of using PEOs are lower HR costs and the use of their time-saving tools and services. They also manage HR compliance and risk-aversion. Employees will be able to recieve better benefits, making your business more attractive to work at.
How Much Does it Cost To Use A PEO in Kentucky? – It usually costs between $1,000 – $2,000 per year per employee to use a PEO. Businesses a greater number of employees will get a better rate.
How Does a PEO charge? – PEO’s generally charge a percentage of overall payroll or a straight admin fee per employee. We try to recommend the PEOs that charge the admin fee due to their increased transparency and fewer hidden fees.
Does it Cost Money to Switch to a PEO? – There is usually a startup fee that generally ranges from $1000 to $15,000.
How Long Does it Take to Get Started Once I Choose a PEO? – It will take three to six weeks, depending on your business, with an average time of 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? – You should most likely be doing your own payroll using the PEO, although this may change based on the makeup of your company.
Is There Anything Special to Consider When Looking at Kentucky PEOs? – Kentucky is home to a wide variety of businesses, so make sure that the PEO you look into serves your industry well and not just Kentucky businesses. Depending on your region you might also want to look into a PEO that especially knows its way about regional regulations.
What is the Best PEO in Kentucky? – Kentucky businesses vary greatly, and there is a best PEO choice for each of them individually. Check out our state-based PEO guide here.
Before you make any decision that directly impacts your business in the long-term, you want to be sure you’re looking at as many options as possible. As part of this effort, we’ve found that an even deeper dive into the world of Kentucky PEO’s can be helpful for some companies.