8 Best Professional Employer Organization (PEO)

The finest PEO firms provide entire HR and payroll services, as well as an excellent help in dealing with regulatory compliances, payroll tax rules, and labor laws. PEO services should also give access to a wide selection of benefits at lower rates—options and prices that, at times, a small or midsize firm cannot typically obtain.

We analyzed 12 PEO providers for small businesses for this guide and limited the list down to our top eight suggestions.

• Justworks: Best (all-around) for small enterprises in need of a low-cost, high-functioning website. PEO Rippling is ideal for firms that require HR and IT management.
• XcelHR: Leader in comprehensive benefits, including alternative choices (such as pet insurance).
• Paychex PEO is the best option for highly customizable PEO programs.
• TriNet is the best choice for industry-specific customized PEO services.
• Insperity: Ideal for medium organizations in need of PEO services with a training focus.
• Papaya Global is a global leader in payroll and employer of record (EoR) services.
• ADP TotalSource is ideal for expanding firms seeking the experience of a major PEO.

Justworks is The Best All-Around PEO Service for Small Businesses

Because of its low cost and solid PEO services, Justworks is an ideal solution for small enterprises with minimal HR knowledge. It provides payroll processing, tax preparation, and employee benefits management. Its clients employ 70,000 people, and its packages include enterprise-level alternatives from prominent carriers and insurers. It also gives you access to HR consultants who can assist you in remaining compliant.

Justworks achieved flawless grades in several of our categories, scoring 4.46 out of 5 in our study, due to its clear pricing, powerful payroll and HR administration capabilities, and dependable PEO services. While it offers an easy-to-use design and online resources, it lost points for its limited report customization possibilities and absence of mobile apps that allow employees to check pay stubs and benefits information on the move. Furthermore, unlike the PEO businesses we studied (except Papaya Global), all of which have feature-rich HR capabilities, Justworks provides restricted learning management tools and an extra-cost time tracking solution (monthly prices start at $20 + $5 per employee). In terms of customer feedback, According to third-party review sites (such as G2 and Capterra), its HR solutions and PEO services are reasonable and efficient. However, several users were dissatisfied with its restricted reporting and third-party program connections.

Justworks Payroll Key

 Justworks, like Rippling and Papaya Global, allows you to execute out-of-cycle pay runs at no extra expense. The five other PEO firms on our list demand a fee for each pay run. Justworks manages appropriate federal, state, and local tax payments and filings, including year-end tax reporting, in addition to processing payments for workers, contractors, and suppliers. However, Justworks' payment choices are limited—it only accepts direct deposits and paper checks. Check out ADP TotalSource, XcelHR, Paychex, and Insperity for payment card options.

Employee intranet

 Aside from seeing pay stubs and perks, Justworks' online self-service portal makes it simple to onboard new employees. Employees can use it to fill out online forms, obtain tax and payroll papers, read corporate regulations, seek paid time off (PTO), and do other things. It does not, however, have mobile applications for its self-service capabilities. If you require a mobile employee portal, we recommend ADP TotalSource, XcelHR, Rippling, Paychex, or Insperity.

Benefits

Justworks provides medical insurance from prominent carriers such as UnitedHealthcare, Kaiser, and Aetna. It also offers enterprise-level dental, vision, accidental death, disability, and life insurance choices, as well as flexible spending accounts (FSAs) and health savings accounts (HSAs). It also provides Teladoc solutions, gym memberships, and medical advocacy services. While Justworks' benefits packages are competitive with those of the PEO firms on our list, ADP, TriNet, and Paychex provide employee discount programs, while XcelHR offers unique advantages like as house insurance and legal aid.

 

Small Business PEO? Yes, yes, and why not?

Professional employer organizations (PEOs), which allow enterprises to outsource their human resource obligations, should be familiar to all small company owners. A small business PEO can assist the organization in saving money and reducing staff turnover. Small firms that use a PEO service are 50% less likely to fail, according to the National Association of Professional Employer Organizations.¹

This article will define PEOs and explain how they assist small firms in meeting the issues of HR administration with limited resources.

What exactly is a PEO?

A professional employer organization is a PEO. Professional employer organizations manage payroll and other administrative HR functions for enterprises, most of which are small or medium-sized. A PEO may also manage health insurance and other employee benefits in addition to payroll. They can also manage payroll taxes, workers' compensation insurance, employee onboarding, staff training and development, and other responsibilities. They accomplish all of this while assisting the organization in remaining in compliance with employment rules and regulations.

PEO firms and their clients have a co-employment agreement. This implies that PEOs and the firms with whom they collaborate share the burden of becoming employers.

A PEO allows a company to outsource its human resource administration responsibilities rather than handling them in-house. liberated from these Business owners and staff may devote more time and attention to the primary purposes of the company by outsourcing time-consuming administrative activities. PEOs may also save firms money, provide compliance support, assist with risk management, and provide employees with benefits packages that the employer would be unable to give on its own.

• Some PEOs opt to be IRS-certified, allowing them to be referred to as certified professional employer organizations, or CPEOs. They can also apply to the Employer Services Assurance Corporation (ESAC), a nonprofit accrediting and financial assurance agency, for accreditation. 
• Inadequate personnel to manage payroll in-house Small firms, due to their size and stage of development, do not often employ extensive HR departments like major enterprises. The process of growth is a balancing act. They frequently struggle to balance all of the intricate and rigorous activities necessary for good payroll administration.
• Furthermore, acquiring and training a qualified payroll administrator may be prohibitively expensive. PEO firms eliminate the need for small businesses to hire an in-house employee.
• Payroll specialist. PEO services generally include payroll processing, payroll record keeping, payroll tax collection and administration, and W-2 distribution. They are also prepared to handle workers' most complex payroll questions.

Could PEO be a good fit for you?

Contracting with a PEO delivers cost-effective benefits for many small firms. Still, you'll need to locate the proper match for your organization, something a PEO broker may assist you with. However, dealing with a PEO may not be appropriate for every firm. So there's a lot to think about. As an example:

• Which HR functions do you wish to delegate?
• What factors should you consider while hiring a PEO?
• How do you choose which PEO firm offers the finest PEO services for your needs?
• How much does a potential PEO provider charge for its services?
• You should also consider how PEO prices compare to other in-house or outsourced HR solutions.

PEOs can supply small firms with much-needed HR administrative services. Small businesses may streamline their operations and focus on company growth by outsourcing HR tasks. Contracting with a PEO is an important step. Companies should exercise caution while selecting a supplier that provides the finest PEO services for their specific circumstance.

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