Are you a business owner in Minnesota who is looking for a great way to reduce operating costs? If so, you’ll probably find yourself evaluating all kinds of potential options related to outsourcing core business functions like accounting and Human Resources. Companies that provide outsourced HR-related services are known as Professional Employer Organizations, or PEO’s. Finding the right PEO for you can result in drastic improvements to your business today and in the future.
To get the most out of any PEO relationship, it’s important to locate a PEO that has services and industry specializations that are relevant to your company. Further, the right PEO should have expertise in delivering exactly the right assortment of the HR-related functions you need, including payroll processing, hiring and training, and benefits management. As you weigh the options of all the PEO’s that operate in Minnesota, use this quick comparison of the top PEO’s as an initial guide to what is currently available.
To learn more about finding the best PEO service provider for your Minnesota business, keep reading below:
High-Level Overview of Minnesota PEO Services:
Minnesota businesses can benefit from PEOs in many different ways, although you will want to look at a few primary features. A worthwhile PEO service provider will be able to manage standard HR needs without issue. Other major services provided include benefits procurement and administration, payroll management, managing workers comp on a cash flow basis, quarterly tax filings, and risk mitigation and compliance.
You will also be able to good PEOs to help your business with recruitment, expense reporting, training, and additional tasks. And since the PEO will be pooling your employees when negotiating benefit costs with providers, your business will be able to get better rates on things such as health insurance and workers comp coverage.
Factors for Evaluation of a Minnesota PEO Service:
There are many factors to consider when evaluating a Minnesota PEO service. Nonetheless, every point is important, and we’ve looked into everything to make sure that you get the very best information. 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
There are plenty of providers in Minnesota, so it’s vital to know what to review when doing your shopping.
We also want to make sure that no matter what 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 Minnesota
Insurance Cost Savings – Your Minnesota business can save money on health insurance by using a PEO. They can negotiate more effectively and get better rates for your business.
Less Paperwork – Paperwork is the last thing you want to do, and a PEO will work to make sure it is something you rarely have to do.
Compliance and Legal – A PEO can take care of legal and compliance issues your business might have to deal with, including Minnesota regulations. Professional expertise and well-developed tools allow the PEO to stay on top of problems before they might happen.
FAQ About PEO Companies in Minnesota:
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 will make your business more attractive to employees by providing better benefits.
How Much Does it Cost To Use A PEO in Minnesota? – Larger businesses will get better rates, but it usually costs between $1,000 – $2,000 per year per employee.
How Does a PEO charge? – PEO’s generally charge a percentage of overall payroll or a straight admin fee per employee. We prefer PEOs that charge the more transparent admin fee.
Does it Cost Money to Switch to a PEO? – There is 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 can range from three to six weeks, with a four-week average to expect.
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 to do with it.
As the Founder, Should I Pay Myself Using a PEO? – You will likely want to do your own payroll with the PEO, but this might change based on your business.
Is There Anything Special to Consider When Looking at Minnesota PEOs? – You will want to have a PEO that can accommodate Canadian employees, should you have any. Additionally, you will want to make sure that the PEO directly supports Minnesota businesses, as some larger PEOs might write off the state while stating they offer support. Otherwise you’ll want to look for a generally strong PEO service.
What is the Best PEO in Minnesota? – Some PEOs are better for certain types of businesses, making the decision not a clear-cut one. Check out our state-based PEO guide here.
Deciding on the right employee leasing firm or PEO for you doesn’t have to be a time-consuming process with confusing information at every turn. You can help yourself and your Minnesota business by letting us help you through a free, comprehensive report of the five PEO’s that best suit your company and its characteristics.