As a Connecticut business owner, you will have learned by now how important it is to get the right staff for the job but that’s not always so easy. Hiring staff brings all kind of headaches like employee benefits, payroll, and legal compliance. You hire staff in the first place to make your life easier and your company run smoother but actually getting the staff in the first place can prove to be a nightmare.
The good news is; just as you want to hire staff you can hire people to hire your people. It’s a beautiful circle that makes your life easier to make your life easier. These are known as Professional Employer Organizations or PEO’s.
The question becomes which PEO do you hire?
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For more information about Connecticut PEOs, keep reading below:
High-Level Overview of Connecticut PEO Companies:
Each PEO service provider can help your Connecticut business in different ways, although there are many commonalities. They all will be able to manage standard HR needs, starting from onboarding and going until the end of an employee’s time at your company. Main services provided include benefits procurement and administration, payroll management, handling quarterly tax filings, managing workers comp on a cash flow basis, compliance management, and risk mitigation and analysis to help prevent workplace accidents.
Most Connecticut PEOs can also help your business with recruiting new team members, expense reporting, employee training, and more, should your business want the services. Additionally, by transferring your HR responsibilities to a PEO service provider, you will be able to leverage (or have the PEO leverage for you) the power of a large employee bargaining pool, leading to discounted benefits and workers comp pricing. Your HR department will be cheaper to run and better at what they do.
Factors for Evaluation of a Connecticut PEO Service:
PEO services vary by provider and as such there are many factors to take into consideration. Each facet of a provider is important, and we’ve reviewed it all to look for the best all-around PEO service provider, specifically in the state of Connecticut. We’ve reviewed the following items and services when looking at 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 big-name PEO service providers, so you will need to know the most important factors to look at when selecting your Connecticut provider.
Regardless of which PEO you end up choosing, we will make sure your business works with a full solution that fits all of your needs. Therefore, if an otherwise standard service or benefit is not mentioned in the recommendations above, please consider it available.
Benefits Of Using a PEO Services In Connecticut
Insurance Cost Savings – PEOs are usually hired to save companies money, most savings come from lower health insurance costs. When you use a PEO you get to leverage a large pool of clients to get cheaper rates (and better service) for your business.
Less Paperwork – Paperwork can already be a staple of business in Connecticut, so why not delegate what you can? A PEO will use their technology platform to reduce paperwork for you and your business.
Compliance and Legal – A PEO manages all compliance and legal issues regarding employees, even state or city regulations. The PEOs systems will easily and effectively handle all related problems and assist you in nearly any emergency.
FAQ About PEO Companies in Connecticut:
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 (for the most part). 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, and they will do so with expert care.
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, platforms, and services. Additionally, they manage HR compliance and risk-aversion. They generally allow your business to provide more value to employees (both current and future), making it a more attractive employer and one employees will want to stick with.
How Much Does it Cost To Use A PEO in Connecticut? – It generally costs between $1,000 – $2,000 per year per employee to use a PEO. Businesses with more employees will usually get lower rates.
How Does a PEO charge? – PEO’s generally charge a percentage of overall payroll or a straight admin fee per employee. We prefer PEOs that charge the admin fee, as those fees are more transparent. We find that PEOs that charge a percentage of payroll have hidden fees and other issues when you review and go to pay bills.
Does it Cost Money to Switch to a PEO? – There is usually a startup fee which ranges from $1000 to $15,000, depending on the size and structure of the business.
How Long Does it Take to Get Started Once I Choose a PEO? – Startup time can range from three to six weeks, depending on the PEO. The average time to set up is about four weeks.
Can I Get Health Insurance for Myself and My Family as the Founder? – Some PEO’s will offer this option and others will not.
As the Founder, Should I Pay Myself Using a PEO? – While this can vary depending on your company and its organizational makeup, you should more often than not be using the PEO service to do your own payroll.
Should I Know Anything About Connecticut PEOs When Searching for One? – Any business involved in or related to the heavy insurance industry in the state will want to make sure to get a PEO that knows how to navigate those regulated waters. Additionally, you will want to make sure the company is up to date on more recent regulations passed about PEO services themselves, so your service isn’t disrupted in any way.
What is the Best PEO in Connecticut? – Connecticut businesses have unique and varying needs not only making the best PEO in the state perhaps different from the rest of the nation, but the best PEO might vary from business to business. Check out our state-based PEO guide here.
Choosing the right PEO can really boost or hinder your Connecticut business. If you choose the wrong one, you can be crippled by high prices, too many employees with not enough work to go around and aspects you’ll never use. If however, you choose the right one it can make everyday stress free, easy to manage and efficient.
To make sure you get the best PEO for your company fill in the questionnaire below and a PEO Broker from Business Exits will get in contact with you.