There’s a lot of moving parts to a business. Your company should work like a big machine. When it all works well, everything falls into place and it is like printing money, it’s glorious. However, if pieces don’t work well your machine can slow down and even break resulting in no money being printed. You can make sure your machine works perfectly by hiring the best people but how do you hire the right people?
You hire someone to do that for you. These people are known as Professional Employer Organizations or PEO’s. They are responsible for hiring and maintaining your staff. However, there are a lot of PEOs out there and not all of them will suit you. You might want to use the tool below to narrow down your selection.
Please review the below information to learn more about PEOs and Alaska PEOs in particular:
High-Level Overview of Alaska PEO Services:
PEO service providers can help each Alaska business in different ways. They manage all tactical HR services, from first-day onboarding to employee resignation. Some of the main services provided are benefits provision and administration for employees, payroll management, quarterly tax filings, covering workers comp on a cash flow basis, regulation compliance management, and employee risk mitigation.
Most Alaska PEOs will also help your business with recruiting, expense reporting, training new employees and much more. Additionally, by transferring your HR functions and tasks to a PEO, you gain access to a large employee base that is grouped together for bargaining purposes, resulting in discounted pricing on benefits and workers comp. This lets your HR department become more efficient and less costly.
Factors for Evaluation of an Alaska PEO Service:
PEO services vary from company to company, and there are many factors to consider. They are all important, and we’ve studied each while scouring the market for the best all-around PEO service provider, especially in the state of Alaska (some PEOs won’t operate as well in some states). We’ve reviewed the following features and services when looking at each individual 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 dozens of high-profile PEO service companies to choose from, so it is important to get the fundamentals down as it was important for us to see which services work best in Alaska.
No matter which PEO you end up choosing, we will ensure you receive a full PEO solution that fits your needs. Therefore, if a standard service is not mentioned in the recommendations above, please consider it as available.
Benefits Of Using a PEO In Alaska
Insurance Cost Savings – Companies use PEOs to save money. Most of the savings come from reduced insurance costs for their business. By using a PEO, you get to leverage their large pool of clients to get better rates for your business.
Less Paperwork – HR and payroll paperwork isn’t going to get you closer to your goals. There are so many better things to look at in Alaska. A PEO uses their technology platform to minimize the amount of paperwork your organization has to manage.
Compliance and Legal – A PEO manages all compliance and legal issues regarding your employees, even the most confusing and obscure of state regulations. Know that you are safe having the checks and balances managed by the PEO’s system.
FAQ About PEO Companies in Alaska:
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 (most PEOs do this). They 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 are PEO are reduced HR costs and their time-saving tools and services. Additionally, they handle HR compliance and allow your business to provide more value to its employees, making it a more attractive employer.
How Much Does it Cost To Use A PEO in Alaska? – Generally, it costs between $1,000 – $2,000 per year per employee to use a PEO. Businesses with more employees generally get lower rates.
How Does the PEO charge? – PEO’s generally charge a percentage of overall payroll or an admin fee per employee. We recommend PEO’s that charge the admin fee because those fees are more transparent. We find that PEOs that charge a percent of payroll have more hidden fees and less clear communication when it comes time to pay the bill.
Does it Cost Money to Switch to a PEO? – Generally, there is a setup fee which ranges from $1000 to $15,000 depending on the size and complexity of the business.
How Long Does it Take to Get Started Once I Choose a PEO? – It can range between 3-6 weeks, depending on the PEO. The average setup time is about four weeks.
Can I Get Health Insurance for Myself and My Family as the Founder? – Some PEO’s offer this option. Others do not.
As the Founder, Should I Pay Myself Using a PEO? – While this may vary depending on the structure of your business, you likely should be using the PEO to do your own payroll.
Is There Anything Unique to Alaska PEOs? – A major note is that many PEO companies do not operate in Alaska, so your selection might be relatively limited (although still sizable). Additionally, you will want to make sure that onsite services are still available for the state of Alaska, should you be interested in them.
What is the Best PEO in Alaska? – This is a difficult question due to the wide variety of needs Alaska businesses have and the wide variety of PEOs available. Check out our state-based PEO guide here.
Choosing the right Alaska PEO for you is by no means an easy task but when you have the right one working for you, your machine will come alive and reach a new level of efficiency. Printing money at a rapid pace, filling your pockets to the brim. Sounds nice, doesn’t it?
The quicker you choose the best PEO for you, the quicker they can start taking care of your staff.