If your small- or medium-sized Washington company is reaching a point where outsourced HR services are starting to make more and more sense, then you’ve probably heard of Professional Employer Organizations, or PEO’s. These are companies that will provide services like payroll, benefits administration, workers comp claim management, and more.
PEO’s typically charge for their services on a per-employee basis, but not always. There are numerous reasons why one PEO might be better or different from another, so we’re offering this brief comparison of the top three PEO companies that serve the state of Washington.
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To learn more about finding the best PEO company for your Washington business, keep reading below:
High-Level Overview of Washington PEO Services:
Washington business owners should review a few key things when looking at PEOs. A great provider will be able to take care of your HR and payroll needs for all of your employees, no exceptions. You can also look into services such as benefits management, workers’ comp management, tax filing, and risk mitigation and compliance services.
PEOs will also be able to help your business with personnel recruitment, reporting expenses, training employees, and getting better rates on health insurance and workers comp coverage. PEOs have greater leverage when negotiating services and benefits, so you can count on them to get the job done.
Factors for Evaluation of a Washington PEO Service:
There are many factors to consider when reviewing a Washington PEO service. Every factor is important, and that’s a lot to take in. Don’t worry, however, as we’re here to manage that information for you. 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 quite a few PEO service providers working in the state of Washington, so knowing how to narrow the field will be important.
Finally, we want to make sure that you will work with a full solution, one that will meet all of your HR and payroll needs. 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 Washington
Insurance Cost Savings – Your Washington business can reduce costs, specifically health insurance costs, by using a PEO. PEOs can more negotiate with benefits providers on an even level, given their greater bargaining power.
Less Paperwork – Paperwork is already bad in Washington, why make it worse? A PEO helps your business keep paperwork to the minimum.
Compliance and Legal – A PEO can manage compliance and legal issues relating to your employees, and also help your business with confusing Washington regulations. The PEOs professional staff will help you on your way through problems.
FAQ About PEO Companies in Washington:
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? – Time-saving tools and services, for one. HR compliance and risk-aversion support are also provided. You will also be able to provide better benefits to employees, helping your business when it wants to retain the best people for the job.
How Much Does it Cost To Use A PEO in Washington? – It generally costs between $1,000 – $2,000 per year per employee to use a PEO. If your business has more employees, you will be able to get a better deal.
How Does a PEO charge? – PEO’s either charge a percentage of overall payroll or a straight admin fee per employee. We find that PEOs that charge based on payroll send out more confusing and misleading bills, and therefore prefer the straight fee method.
Does it Cost Money to Switch to a PEO? – There is usually a startup fee. This fee ranges from $1000 to $15,000, depending on your business’ size and industry.
How Long Does it Take to Get Started Once I Choose a PEO? – Depending on the PEO, the time it takes to set up all of your services can range from three to six weeks, with an average wait time of about four weeks.
Can I Get Health Insurance for Myself and My Family as the Founder? – It will depend entirely on the PEO your business works with.
As the Founder, Should I Pay Myself Using a PEO? – In most cases, you will want to do this.
Is There Anything Special to Consider When Looking at Washington PEOs? – Washington has a fair amount of state laws and regulations to contend with, so you will want to work with a PEO that can take them head-on and understand them for you and your business. Additionally, you will want to look for a PEO that can help you find and get the very best employees, given just how competitive the market is in Washington.
What is the Best PEO in Washington? – Washington businesses are different, and therefore our recommendations would be as well. Check out our state-based PEO guide here.
If you run a small or medium-sized business in Washington and you think it’s time to start looking at Professional Employer Organizations to help you save money and streamline your business, then you need our free, 7-PEO comparison report.