When it comes to growing your business in Massachusetts, there are lots of creative ways to reduce costs and improve efficiency. However, not all of these ways are sustainable, with the exception of one – working with a Professional Employer Organization, or PEO. PEO’s are companies whose sole purpose is to provide HR-related services like payroll processing, training, and more.
If you could free up the time, money, and other internal resources that are assigned to human resources functions, imagine how much more profitable and smoother your business would operate. To get there, you need to choose a PEO that is aligned with your business objectives, a task we are helping with by providing you with this quick guide to PEO’s that serve the Massachusetts market.
If you want to learn more about getting an HR edge in Massachusetts, keep reading below:
High-Level Overview of Massachusetts PEO Services:
Massachusetts businesses can benefit in the bay state from PEOs in different ways, some features should stand out. A top PEO service provider should be able to manage any and all standard HR needs for your staff. Other major services provided include benefits administration, payroll management, managing workers comp on a cash flow basis, quarterly tax filings, and risk mitigation and compliance.
PEOs can also help your business with personnel recruitment, expense reporting, employee training, and other services should they become necessary or wanted. You will also be able to get better rates on health insurance and workers comp, as PEOs can bargain with a much larger pool of employees.
Factors for Evaluation of a Massachusetts PEO Service:
There’s a lot to unpack when it comes to Massachusetts PEOs. Don’t worry, however, as we’ve looked into every nook and cranny to make sure that you get the full picture. 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
Massachusetts is nearly bursting at the seams with PEO providers, so you’ll want to know what to look for when comparison shopping.
We also absolutely want to make sure 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 Massachusetts
Insurance Cost Savings – Your Massachusetts business can save money, mostly via lower health insurance costs, by using a PEO. PEOs negotiate with benefits providers more effectively due to their enhanced bargaining power.
Less Paperwork – Massachusetts businesses are already swimming in paperwork. With a PEO that paperwork is kept to a minimum.
Compliance and Legal – A PEO can manage all compliance and legal issues regarding your employees, and also work with the reams of Massachusetts regulations. The PEOs professional staff and systems will take care of those problems and additional difficulties.
FAQ About PEO Companies in Massachusetts:
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 reduced HR costs and the use of their time-saving tools and services. They also manage HR compliance and risk-aversion. Your employees will also have access to better benefits.
How Much Does it Cost To Use A PEO in Massachusetts? – It usually costs between $1,000 – $2,000 per year per employee to use a PEO. Larger businesses will get better rates.
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 easier to understand. We find that PEOs that charge based on payroll have more hidden fees and are more obtuse to work with.
Does it Cost Money to Switch to a PEO? – There is usually a startup fee to pay when you sign with the PEO. This ranges from $1000 to $15,000, depending on the size of your business, among other factors.
How Long Does it Take to Get Started Once I Choose a PEO? – Depending on the PEO, the time it takes to start up your services can range from three to six weeks, with an average wait time of 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 require you to find an alternative.
As the Founder, Should I Pay Myself Using a PEO? – You should be using the PEO service to do your own payroll, although this might not be the case with some business structures.
Is There Anything Special to Consider When Looking at Massachusetts PEOs? – Massachusetts is a heavily regulated state when it comes to business, so you’ll want to make sure that you have a PEO that can back your business up when you need to keep your ship on the straight and narrow. Otherwise, we would advise you to pick out a PEO based on your industry above state concerns, as most PEOs will operate perfectly fine in Massachusetts.
What is the Best PEO in Massachusetts? – While there are some all-around outstanding PEOs on the market, individual business needs mean that each business will have it’s own selection for best PEO. Check out our state-based PEO guide here.
There is a lot to be gained through a strategic partnership with a PEO that is in alignment with your company goals and directives. If you need even more information to aid you on your quest to find the best PEO for you, we’re here to assist you with a free, customized report. This report contains information on the five best Massachusetts PEO’s that suit your business’ size, location, and industry.