Given all of the ways to grow your business in Michigan, one of the quickest and simplest involves a partnership with a Professional Employer Organization, or PEO. A PEO can provide you with the necessary HR functions that you’re already managing, but at a cost that is much lower in terms of money and time. If you think your company can benefit from a PEO provider, the first step is to determine which ones are the best fit for you.
In choosing a PEO, there are at least three features to consider: industry specialization, size, and geographical area of operation. Not all PEO’s are right for all companies, which is why we’re helping with this brief article about PEO’s that are currently serving the Michigan market. Use this information as a ‘head start’ in your hunt for the perfect PEO.
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To find out more about aquiring a PEO for your Michigan business, keep reading below:
High-Level Overview of Michigan PEO Companies:
Michigan businesses can get a lot out of using a PEO, but some features will stand out more than others. The best PEO services can easily manage normal HR tasks in relation to all of the employees in your company. They should also be able to handle benefits procurement and administration, payroll management, tax filings, managing workers comp, and compliance and risk mitigation efforts.
Most PEOs will also be able to help with recruitment, expense reporting, training, and many other services as they are needed. Additionally, since PEOs pool client employees when negotiating benefits, your business will be able to get better rates on workers comp coverage and health insurance.
Factors for Evaluation of a Michigan PEO Service:
Michigan PEO services have a lot of facets to consider. That being noted, each facet is still important, and we want to make sure that you get the right information (and as such looked into everything). 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
Many providers operate in the Michigan market, so it’s vital to know what to look for when making your decision.
No matter what your end decision is, we want you working with a full-service 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 Michigan
Insurance Cost Savings – Your Michigan business can reduce costs by using a PEO, mostly through lower health insurance rates. PEOs can more easily negotiate benefits with providers given their size and experience.
Less Paperwork – Paperwork is drudgery made from trees. A PEO will help to keep the pile on your desk small.
Compliance and Legal – A PEO can handle all compliance and legal issues regarding your employees while making sure your business operates within federal and Michigan regulations. Their staffs are professional and their systems will take care of most potential problems.
FAQ About PEO Companies in Michigan:
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 platforms and services. They also manage HR compliance and risk-aversion. They usually allow your business to provide better benefits to employees, thereby making it a more attractive place for employees to work.
How Much Does it Cost To Use A PEO in Michigan? – It usually costs between $1,000 – $2,000 per year per employee to use a PEO, with larger businesses in terms of employees getting a better 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 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 that ranges from $1000 to $15,000.
How Long Does it Take to Get Started Once I Choose a PEO? – The time it takes to start up your services can vary from three to six weeks, depending on your service provider. You can expect a wait time of about four weeks on average.
Can I Get Health Insurance for Myself and My Family as the Founder? – Some PEO’s will offer this option. Others won’t have anything like it.
As the Founder, Should I Pay Myself Using a PEO? – This will generally be recommended, although it might change based on your company.
Is There Anything Special to Consider When Looking at Michigan PEOs? – Michigan state laws and local regulations are a heavy consideration, and you’ll want a PEO that not only will be able to help your business with them but know exactly what they’re doing. Also, if you have people from over the border working for your business, you will want to have a PEO that can help you in that regard.
What is the Best PEO in Michigan? – While some PEOs are better than others, the decision is more nuanced based on your business’ needs. Look at our state-based PEO guide here.
We know there’s a lot to consider as you evaluate the PEO’s that seem like the right fit for your Michigan company and its employees. When you take your overall business goals into account and search for the PEO that aligns with them, the obvious choice is made clear in time.