California based companies are relying more and more on Professional Employer Organizations, or PEO’s, to manage their HR, payroll and benefits administration functions. Working with a PEO is a straightforward process once you find the right PEO for you, but making that choice regarding who to work with isn’t always so easy.
There are numerous factors to consider if you’re responsible for the HR function of your California business and you’re looking to outsource. Because there are so many options available to you, we’re providing a brief evaluation of three of the most popular PEO companies that serve the California area.
Editor’s Note: Want a professional report of the five best PEO’s for your organization? Complete the form below, and a PEO specialist will contact you with more information:
HIGH-LEVEL OVERVIEW OF CALIFORNIA PEO SERVICES:
You must look at a few essential features when thinking about the gains your California business can reap by using a PEO. You’ll want to get a good PEO that will tackle any HR problems that may arise at any given time to keep your operations simple and moving swiftly.
Other items on the list that you can expect from a right PEO include the onboarding of new talents, training, and firing. You can also take advantage of offering your employees with better rates for your business through PEOs who can negotiate better with benefits providers than you could on your own.
FACTORS FOR EVALUATION OF A CALIFORNIA PEO SERVICE:
We can’t exhaust the list of factors to consider when looking for a PEO service provider. However, here are the services and items we used when reviewing each PEO in California.
• Tax processing
• Payroll processing and payroll taxes
• Health insurance options and support
• Workers compensation insurance
• 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
You can still search a PEO on your own by keeping the above factors in mind through the entire process.
BENEFITS OF USING A PEO IN CALIFORNIA
Insurance Cost Savings – Using a PEO allows you to save time and money, primarily through time-saving tools and reduced health insurance costs, respectively.
Less Paperwork – Do away with paperwork by working with a PEO that handles all the work for you through the use of their automated services.
Compliance and Legal – PEOs are the companies to look for if you want your business to thrive in California and still abide by laws and regulations when handling your employees’ compliance and legal matters.
FAQ ABOUT PEO COMPANIES IN CALIFORNIA:
What is a PEO? – A PEO (Professional Employer Organization) provides a business with a platform where they can outsource their HR tasks, such as employee and personnel management. They manage businesses’ payroll, employee wellness programs, onboarding new employees, tax forms and payments, insurance, and many other benefits.
What Are the Benefits of Using a PEO? – PEOs will handle all your risk-aversion and HR compliance and legal issues with efficiency. You can also use their time-saving tools to get more time for other crucial things on your tight business schedules.
How Much Does It Cost to Use A PEO in California? – An employer can pay an annual fee of between $1000-$2000 per employee to use a PEO in California.
How Does a PEO charge? – A PEO can either go with a straight admin fee (preferred) or a percentage of the overall payroll per employee as the charging method.
Does it Cost Money to Switch to a PEO? – Yes, and it will probably cost you about $1000 to $15000.
How Long Does It Take to Get Started Once I Choose a PEO? – A PEO can take three to six weeks to have everything in place, but on average, it usually takes four weeks.
Can I Get Health Insurance for Myself and My Family as the Founder? Yes, and based on the PEO you work with.
As the Founder, Should I Pay Myself Using a PEO? – Most likely, yes. But it also depends on your organizational makeup.
Is There Anything Special to Consider When Looking at California PEOs? – It would be best if you got a PEO that can solve any HR risk posed on your business while considering all the laws and regulations in the state.
What is the Best PEO in California? – California is one of the largest states in the US, and you can always find a good PEO for your business. Check out our state-based PEO guide here.
Get every detail you may want about a particular PEO by contacting us to talk to our specialists, or complete the comparison form above to get a PEO service provider for your California business.