Regardless of how many employees you have, what your product or service is, or what industry 0you’re in, outsourcing your core HR functions like payroll, benefits management, and claims management can make excellent financial sense. More and more Philadelphia-based companies are looking to PEO’s for cost savings, and for good reason.
However, finding the right PEO for you involves extensive research and due diligence, which can get confusing fairly quickly. Some PEO’s are a bad fit for some organizations due to industry specialization or due to the service offerings provided. To help make sense of all the options, we’re providing a brief guide to PEO companies in Pennsylvania.
To learn more about finding the best PEO company to work with your Pennsylvania business, keep reading below:
High-Level Overview of Pennsylvania PEO Services:
There are plenty of benefits your Pennsylvania business can receive by using a PEO, but before you get too ahead you’ll want to review a few primary features. A solid PEO service provider will be able to make sure that you are getting HR needs met and met well for all of your employees. Other things to look at in detail include benefits procurement and administration, payroll management, dealing with workers comp on a cash flow basis, tax filings, and risk mitigation and compliance support.
PEOs also regularly help businesses with personnel recruiting, expense reporting, training of employees, and more. Also, since PEO providers pool their client’s employees when negotiating benefits, your business will be able to get better rates on health insurance and workers comp coverage.
Factors for Evaluation of a Pennsylvania PEO Service:
There are many factors to consider when properly evaluating a Pennsylvania PEO service. Still, we crossed all the t’s and dotted the i’s in our research to make sure that you get the correct 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 many providers working in Pennsylvania, so it’s important to know what to look for when shopping around.
We also want to make sure that you are recommended a full-service PEO solution, so you should consider available any standard service or benefit that is not mentioned in the recommendations above.
Benefits Of Using a PEO In Pennsylvania
Insurance Cost Savings – Your Pennsylvania business, by using a PEO, can reduce its health insurance costs. Considering their greater bargaining power, PEOs can more effectively negotiate with benefits providers.
Less Paperwork – You have enough paperwork. A PEO will help keep you from getting more.
Compliance and Legal – A PEO can easily manage legal issues and compliance concerns that might arise, and they will offer your company the guidance it needs to succeed. You will be able to rely on their professional recommendations.
FAQ About PEO Companies in Pennsylvania:
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? – PEOs provide time-saving tools and services while also managing HR compliance and risk-aversion. With one, you will also almost certainly be able to provide better or cheaper benefits to employees.
How Much Does it Cost To Use A PEO in Pennsylvania? – It costs between $1,000 – $2,000 per year per employee to use a PEO, as a general rule. Larger businesses will get better rates.
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, to us, preferable, as those fees are much easier to understand. Conversely, those that charge a percentage of payroll often will have hidden fees in the bill as well.
Does it Cost Money to Switch to a PEO? – A startup fee is usually charged and can range from $1000 to $15,000, depending on your business.
How Long Does it Take to Get Started Once I Choose a PEO? – Depending on the PEO, the time it will require to start up your services can range from three to six weeks, with an average start time of four weeks.
Can I Get Health Insurance for Myself and My Family as the Founder? – Some PEO’s will offer this option. Others will not.
As the Founder, Should I Pay Myself Using a PEO? – Most likely yes, but there are rare exceptions based on your business.
Is There Anything Special to Consider When Looking at Pennsylvania PEOs? – It will depend heavily on the region of Pennsylvania you’re in and furthermore the industry your business works in. After looking into these factors, we would recommend you simply look for the best PEO that can also work with Pennsylvania state laws and regulations.
What is the Best PEO in Pennsylvania? – The best PEO in Pennsylvania for one business might not be the best for another. Check out our state-based PEO guide here.
After a brief, 15-minute consultation, we will provide you with a comprehensive comparison of seven PEO’s that are best suited for your Pennsylvania organization. Then, you can perform your own analysis with the most accurate information possible.