One of the most common strategies used to help small- and medium-sized businesses lower costs and improve efficiency is outsourcing their HR functions to qualified, outside organizations. Professional Employer Organizations have sprung up throughout Virginia and the world, offering a long list of enhanced HR services for a reasonable, per-employee price.
But, choosing the right PEO for you isn’t as simple as picking a company name out of a hat at random. Many PEOs have industry specialties and services that are above and beyond just payroll or benefits administration. To help make sense of all of your options, we’ve compiled a brief guide of PEOs currently serving companies located in Virginia.
To learn more about finding the best PEO company for your Virginia business, keep reading below:
High-Level Overview of Virginia PEO Services:
Virginia businesses can reap great benefit from PEOs, but you will want to review a few key features. A strong PEO can handle payroll and HR tasks without any problems. Other important services include benefits management and acquisition, managing workers comp on a cash flow basis, necessary tax filings, and compliance and safety assistance.
You will also be able to expect most PEOs to help your business with recruiting new personnel, reporting expenses, employee training, and other services. PEO services, you should note, pool employees when negotiating benefits. Therefore, you can expect better health insurance and workers comp rates.
Factors for Evaluation of a Virginia PEO Service:
Virginia PEO services can be confusing to look over. But don’t worry, we already did and we already checked everything over. 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 many PEO service providers available in Virginia, so keep an eye out for what’s most important to you.
We want to make sure that no matter what your final decision is, 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 Virginia
Insurance Cost Savings – You can save money for your Virginia business by using a PEO. A PEO will be able to negotiate better health insurance rates than you could on your own.
Less Paperwork – Paperwork is something best avoided when possible, and a PEO can work to take care of a lot of it for you.
Compliance and Legal – A PEO can manage compliance and legal issues that might arise regarding your employees, and also navigate the library of Virginia state regulations. A good PEO will be able to answer any questions you might have picking at your brain.
FAQ About PEO Companies in Virginia:
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 to some extent for your business. They also usually allow your business to provide better benefits to employees.
How Much Does it Cost To Use A PEO in Virginia? – It usually costs between $1,000 – $2,000 per year per employee to use a PEO, and businesses with more employees will get a better rate.
How Does a PEO Charge? – PEO’s usually charge a percentage of overall payroll or a straight administrative fee per employee. PEOs that charge the simple fee are preferable, as those bills are much easier to work through. We find that PEOs that charge you based on your payroll have more hidden fees to watch out for.
Does it Cost Money to Switch to a PEO? – There is a startup fee (in most cases) that can range $1000 to $15,000, depending on your business.
How Long Does it Take to Get Started Once I Choose a PEO? – About three to six weeks, with an average waiting time of four.
Can I Get Health Insurance for Myself and My Family as the Founder? – For some PEOs, yes. For others, no.
As the Founder, Should I Pay Myself Using a PEO? – Yes, but there might be exceptions based on the structure of your business.
Is There Anything Special to Consider When Looking at Virginia PEOs? – You will certainly want to find a PEO that has expertize in dealing with Virginia regulations, and depending on where your business operates you might want to find one that also knows it’s way around D.C. Otherwise you likely won’t run into trouble, and we recommend looking for a PEO that simply serves a business in your industry well.
What is the Best PEO in Virginia? – Some PEOs are better for certain types of businesses than others, making this question have a different answer for each business. Check out our state-based PEO guide here.
Giving your company the highest chances of success means working with a PEO that suits your Virginia business best. We can help locate that PEO for you, with our free, five-PEO comparison report. After a brief, 15-minute consultation, we’ll send you your report so you can get started on the decision making process faster.