PEOs for Dummies Continued…
If PEOs make things easy, why are there so many ways you can make a wrong decision in picking one? Let’s take a step back and look at your current process.
For each product, vendor, service, or module you have now, you have some expert/broker/consultant to tell you the difference between the vendors/competitors in the marketplace. For health insurance, you have a broker; for workers comp, you have a broker; for 401K, you have some type of broker or administrator. Oh, how you wish you had a proper broker for HRIS systems. You probably also wish you had a broker or advisor for HR issues. We all need a deep bench and variety of expertise on demand for this.
So that is your current world. It is disjointed and inefficient to have so many parts (which is one reason a PEO can be terrific), but – or rather, when you combine all these services, you now really need an expert that knows each of these components with each of the services. None of your current brokers know about all of the other components, and they certainly don’t know about what each PEO provides and how they combine. And believe me – if you try to do it yourself and trust each PEO salesperson, you will make a mistake.
So, what do you do? How do you arm yourself with the right questions and protect your company from making the wrong decision?
Here are some more questions we answer:
Are PEOs really that great? If so, why doesn’t everyone have one?
Do they really save a lot? What happens next year? They all sound the same – but they are definitely not. How do you know what they each are in advance?
What is different about PEOs now from a few years ago?
How much do they really cost, and what do you need to look out for? What are the nickel and dime fees you need to know about? What is hidden? You will be shocked at what you find.
Are the contracts for all of these services different between the different PEOs, and are they complicated? YES. From the termination fees to your responsibilities, they are very different and have serious implications. This is not like just changing health insurance carriers.
What is the difference between a CPEO and a PEO?
What kind of rate and other guarantees can/should we get?
Are there penalties and other fees we need to be aware of?
What does the ACA filing actually entail from your end? They all say they “do it” – but that means very different processes.
Why are there so many questions about transparency when you research this? Because most fees and other services aren’t transparent. We will tell you what to look out for.
Can you tell me about PEPM vs. % of Payroll options? Yes, we will.
Are there more reasons I can’t trust the PEO salesperson? Yes, and we’ll give you some ugly examples.
Next time we’ll dig deep into those ugly examples….