If you’re responsible for running a growing business in New Jersey, then you’ve probably heard about the benefits that you can get from outsourcing your human resources functions to a Professional Employer Organization, or PEO. PEO’s can help small and medium-sized businesses thrive by reducing costs and improving efficiency without disrupting operations.
Where the problem arises is when business owners start to look for a PEO that fits their needs. Because no two businesses are the same, their expectations and scope of services will also not be the same. This is why it’s so important to conduct extensive due diligence, taking into consideration every important aspect of the PEO’s that might be right for you. To help with this, we’re offering this guide to PEO companies that operate in New Jersey.
To learn more about finding the best PEO service provider for your New Jersey business, keep on reading:
High-Level Overview of New Jersey PEO Services:
New Jersey businesses can get help from PEOs in a number of ways, but some features are most important. Any good PEO will be able to handle day-to-day payroll services and HR solutions for your business, and they should also be able to tackle benefits administration, hr services, handling worker’s comp issues, employee benefits, tax filings, regulatory compliance, risk-mitigation, and payroll management and administrative services in full.
Good PEOs also should help with expense reporting, recruitment, training, and other services as needed by your business. The best PEOs have more services than you could ever need. What you will certainly want, however, is the lower workers comp coverage and health insurance through employee leasing give rates you can’t get anywhere else for your business.
Factors for Evaluation of a New Jersey PEO Service:
Every facet of a PEO is important, and there are many facets. That being said, we did the digging to get you the vital info you need. We considered each of the following features and services when reviewing each PEO:
- – Tax processing
- – Payroll processing and payroll Taxes
- – Health insurance options and support
- – Workers compensation insurance
- – 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 services operating in New Jersey, so keep the list above in mind when looking on your own as well.
We absolutely want to make sure your New Jersey business works 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 New Jersey
Insurance Cost Savings – New Jersey businesses can save money through lower health insurance costs. This is due to the PEOs better leverage when negotiating benefit costs.
Less Paperwork – Paperwork is terrible, but a PEO can relieve that burden from you and your managers.
Compliance and Legal – A PEO can manage compliance and legal issues for your business regarding HR outsourcing work, as well as dealing with the tomes of regulations on the books in New Jersey. PEO staffs are well-training in handling issues and you can be confident about smooth sailing in the future should you abide by their suggestions.
FAQ About PEO Companies in New Jersey:
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 benefits and workers compensation) and other benefits such as retirement plans, life insurance, long-term disability insurance, vision insurance, dental insurance, employee wellness programs, labor laws, tax administration and on-boarding new employees.
What Are the Benefits of Using a PEO? – You can use time-saving tools and services, have HR compliance and risk-aversion practices mostly handled for you, and provide better benefits to your valuable employees.
How Much Does it Cost To Use A PEO in New Jersey? – It will cost your business, as a general rule, $1000-$2000 per employee per year to use a PEO. We reviewed the cost of multiple PEO’s including ADP, EngagePEO, CoAdvantage, Trinet, Justworks, Insperity, Emplova, Questco and Paychex.
How Does a PEO charge? – PEO’s generally charge a percentage of the overall payroll or a straight admin fee per each employee. PEOs that charge the admin fee are preferable, as those fees are much easier to understand and those companies easier to work with. Sometimes they also charge a co-employment fee.
Does it Cost Money to Switch to a PEO? – There’s a setup fee that can range from $1000 to $15000.
How Long Does it Take to Get Started Once I Choose a PEO? – You can expect a three to six week wait time, with the average being about four weeks.
Can I Get Health Insurance for Myself and My Family as the Founder? – It will depend on the PEO you work with and what type of HR Support you need.
As the Founder, Should I Pay Myself Using a PEO? – Yes, with rare exception.
Is There Anything Special to Consider When Looking at New Jersey PEOs? – Given its proximity to other states and business centers, a good New Jersey PEO should not only know New Jersey laws and regulations but those of surrounding states as well, especially if you’re in a highly regulated industry. You’ll also want an adaptable PEO should any new regulations come up, as they often do in the state.
What is the Best PEO in New Jersey? – New Jersey has so much going on business-wise that selecting a single PEO for the state would be unwise of us. Check out our state-based PEO guide here.
A lot goes into the PEO selection process, and for good reason. The risks of choosing the wrong PEO can result in serious setbacks for your New Jersey business, not to mention potential disruptions to day-to-day operations. Avoid this by arming yourself with only the most relevant information on the PEO’s that are right for you.
To obtain our free report detailing the pros and cons of the five best PEO’s that suit your company, complete the form on this page.