Maryland business owners are constantly on the hunt for the newest and most effective ways to reduce costs within their organizations. One of the most reliable ways to do cut expenses while maintaining a healthy bottom line is to look to Professional Employer Organizations, or PEOs, for help with outsourced HR services.
These services can include payroll processing, benefits management, and enhanced services like hiring, training, and employee development. To learn which PEO may be best suited to your small- or medium-sized business in Maryland, use this handy tool to find top PEOs that currently serve companies in this state.
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To learn more about finding the very best PEO fit for your Maryland business, keep on reading below:
High-Level Overview of Maryland PEO Services:
Maryland businesses benefit from PEO use in a variety of ways, although you should look primarily at a few main features. A good PEO will be able to meet your standards regarding HR management for all of your employees. Other major services provided include benefits procurement and administration, managing workers comp on a cash flow basis, payroll management, quarterly tax filings, and compliance and risk mitigation.
You will also be able to expect Maryland PEOs to help your business with recruiting talent, expense reporting, training, and more. Your business will be able to get better rates on health insurance and workers comp coverage through the use of a PEO.
Factors for Evaluation of a Maryland PEO Service:
There’s a lot to look at when you’re reviewing Maryland PEO services. That being said, every factor is important, and we’ve looked into aspect of a good PEO to make sure that you can make the right choice. We considered each of the following features and services when reviewing 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
Maryland has more PEOs than you can keep track of, so learning to know what to look for is vital.
Regardless of your final selection, you should be working 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 Maryland
Insurance Cost Savings – Maryland businesses use PEOs to reduce costs, mostly by lowering the cost of health insurance for their employees. PEOs do this through more effective bargaining than an individual business can accomplish.
Less Paperwork – You likely already deal with enough paperwork. A PEO will work to keep payroll and HR paperwork levels low.
Compliance and Legal – A PEO can manage all compliance and legal issues regarding your employees while also working to navigate often confusing Maryland regulations. The PEOs processes and staff will be able to ease all related worries.
FAQ About PEO Companies in Maryland:
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 benefits of using PEOs are lower HR costs and the use of many time-saving tools and services. They also manage HR compliance and risk-aversion policy for your business. Using one will also allow your business to provide better benefits to your employees, allowing you to attract and retain better talent.
How Much Does it Cost To Use A PEO in Maryland? – It costs between $1,000 – $2,000 per year per employee to use a PEO in most circumstances. Businesses with more employees will get a more competitive rate.
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 preferable, as those fees are much clearer. We find that PEOs that charge based on payroll have more hidden fees and are more difficult to work with.
Does it Cost Money to Switch to a PEO? – There is usually a startup fee to pay. This ranges from $1000 to $15,000, depending on your business and how it might be set up.
How Long Does it Take to Get Started Once I Choose a PEO? – Depending on the PEO service provider, you can a three to six week start up period. The average time you can expect 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 will depend on your company, but you should usually be using the PEO service to do your own payroll.
Is There Anything Special to Consider When Looking at Maryland PEOs? – Maryland regulations can get rather heavy, so you will want to make sure that the PEO you select has extensive experience working in the region. Additionally, considering the competive business environment in the general region, be sure to find a PEO that is great at recruitment and can provide excellent benefits to your employees. You’ll need the best talent in your industry to stay on top.
What is the Best PEO in Maryland? – Maryland businesses vary greatly, and we think that there is no perfect PEO that will fit every business, although there are some great choices. Check out our state-based PEO guide here.
Given all of the options available to business owners looking to save money by working with a PEO in Maryland, it’s no surprise that we hear from so many of them with requests for our free comparisons. When you’re ready to receive your own five-PEO comparison report, just complete the form below and one of our PEO professionals will be in touch with you with next steps.
We look forward to helping you find the PEO that best suits your business.