Six Tips for Choosing a PEO Service Provider in Texas

When you are looking for PEO services in Texas, you should know that not all companies are equal. There are different things you need to look for when you are vetting these companies. Your business is too important to make whimsical decisions regarding its future. In this article, you will learn six tips for choosing a PEO service provider in Texas.

1. Check Accreditation & Certifications
While there are no necessary accreditation or certifications, there are two voluntary ones you should look for when you are researching PEO companies. The IRS created a certification, and there is accreditation through ESAC which shows that the PEO meets the highest industry standards and you can rest assured that they are in good standing financially.

Most PEOs will also be a member of the National Association of Professional Employer Organization. Check to see if they have their membership in place and good standing.

2. Ensure They Are Experts in Compliance
Compliance is one of the tricky areas when it comes to being in business. Texas and every other state have different laws that you need to comply with as well as the federal laws that govern business, so you need to make sure you are operating in compliance with both state and federal laws.

If you are an expert in law, you need to make sure that your PEO is. You may also want to speak with a business lawyer so that you have advice from someone that works in the law day in and day out. Check to see if your PEO has a strong legal background and you may not need an attorney.

Not only should a PEO know how to comply with the law, but they should also help you put systems and processes in place so that it is easier for you to comply with the law. Not complying with the law can cost you precious monetary resources as well as time to make sure that you confirm with the possible PEO partnership that they will be able to help you with these things.

3. Ensure They Have an Acceptable Range of Available Benefits
Another reason many businesses are attracted to working with a PEO is that they can get access to benefits only Fortune 500 companies usually have access to. Employee benefits are a big draw when you are trying to attract top talent to your company so make sure that they offer attractive options that you can use to get people to come to your company over the competition.

Find out what is being offered by the PEO, how it would affect your current offerings and if the PEO offers value-add solutions like pet insurance and other add-ons. Know what is available and what is not before you partner with any PEO.

4. Ask for Client & Professional References
A fancy website and a likable salesperson is not enough reason to do business with someone. You need to ensure that you ask for references that will help you understand how this PEO has worked with them and how they enjoyed the experience. Failing to ask for references is like leaving a large rock unturned.

When you look at the references they provide for you, check to see if they are businesses in your industry or around the same size of business. You want to make sure they have worked with businesses like yours to have the experience necessary to give you the service that you need. There are some cases that you will find a great PEO that does not have experience in your industry, and it will work out to be a good fit, but make sure they understand your business before making that decision.

5. Test Their Customer Service
When you are partnering with a PEO, you want to make sure that they have good customer service. Find out if you are going to have direct access to your point of contact or if you are going to have to put a ticket in and wait for a reply. What is their policy about holiday and weekends? Make sure you know exactly how you are going to be dealt with when you are a client.

6. Find Out How You Will Be Billed
Don’t forget to check on what the PEO is going to cost your company. You don’t want to have expectations that are dashed when you get the company’s proposal. Depending on what services and help you need, your quote may be considerably higher if you are a big company or low if you have only a few employees.

Most companies bill you a percentage of the pay from employees, and this can be a good option for people that have hourly employees. If you have salaried employees and employees that get commissions and bonuses, you may want to find a company that will bill you a flat rate per employee that they are co-employing.

You can ask to see how their billings are done before you ask for a formal proposal so you can understand how much money your company is looking at putting out for the PEO.

If you stick with these tips for choosing a PEO service provider in Texas, you are going to be well on your way to partnering with the best team that can help you get the results that you want for your business.

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