HSA & FSA Stores
This guide provides you with insights into how you can choose the right PEO for your business with confidence. You’ll gain a better understanding of the following:
Before you talk to any PEO, you should take note of your business needs. What are your current challenges? Do you anticipate changes to your company that could impact which services you need?
After you’ve determined your business needs, ask the following questions to make sure the PEO you select can meet those needs.
There are many options available for small business owners looking to outsource their HR and benefits responsibilities to a professional employer organization (PEO). However, choosing the right partner is critical to success.
A PEO enables employers to cost-effectively outsource the management of human resources, employee benefits, payroll, and workers’ compensation. Being in business for 30+ years, there are more than 500 PEOs nationwide, giving business owners many options when choosing a PEO partner. We hope this page will help you understand the differences between Group Management Services (GMS) and other PEO companies, so you can decide which is the best PEO for your business.
| GMS | Other PEOs | |
|---|---|---|
| One Comprehensive Payroll System | GMS provides a comprehensive web-based payroll solution that includes features such as electronic payroll processing, built-in benefits, time-tracking, and more, all under one umbrella system. | PEOs often use disparate systems to manage payroll, benefits, time tracking, and more. This is inefficient and can complicate the payroll process for business owners. |
| One Point of Contact | GMS assigns one dedicated HR point of contact to every business account. This way, business owners and their employees know exactly who to reach out to. | When partnering with other PEOs, business owners typically find that there is no dedicated account manager and very little to zero face-to-face interaction. |
| Transparent Billing | At GMS, we have nothing to hide. We stand behind our services and will always be transparent when it comes to pricing and billing, so there are no surprises at invoicing. | Other PEOs lack price transparency and often bundle the billing of various services together. This makes it difficult for businesses to know how much they’re really paying. |
| Changes in Regulations | We take a proactive approach with our clients in communicating how changes in regulations may affect their business. Taking a step further, we’ll then take the time to walk clients through any necessary corrections to ensure their business remains safe and compliant. | With other PEOs, business owners often have to initiate questions about regulations changes, making it too easy for compliance issues to fall through the cracks. |
| Master Health Plan | GMS leverages group buying power to allow small businesses to purchase health plans at a lower cost through our master health plan without sacrificing care options or increasing employee deductibles. Additionally, GMS audits every claim to ensure groups and their employees receive the best pricing for lower claims spending and more consistent renewal rates yearly. | Since GMS is the only PEO that provides an in-house master health plan, other PEOs are subject to large swings in trends, usage, and renewal ratings. Most PEOs don’t even take the time to review spending for each individual group. |
| Single Source HR Solution | GMS offers a single-source solution for all of our client’s HR needs. It’s important to us that when a business outsources its HR services, they are receiving our expertise. Businesses gain access to a full team with years of experience managing HR, payroll and taxes, employee benefits, and risk management. | When partnering with other PEOs, businesses don’t always know what kind of service they are getting. Some PEOs will outsource some of a business’s HR functions to yet another company. Often, a PEO will outsource its payroll services or recruiting efforts to another company. |
| Flexibility | GMS understands that there is no one-size-fits-all approach when it comes to managing a business. That’s why we’re flexible in how we approach our services and tailor our offerings to meet the unique needs and goals of every client. | Many PEOs will apply the same strategy across all clients. This approach often fails business owners who are trying to address specific needs such as lowering workers’ compensation rates or boosting retention. |
| Various Industries | GMS is universal. We aren’t siloed to one industry or one type of company. We partner with small businesses operating in many different industries, ranging from construction to technology and more. | Many PEOs can be very particular about who they bring on board. For example, some focus exclusively on certain industries or white-collar professions to avoid risk. |
| Certified PEO | GMS is one of 60 Certified PEOs in the country that are certified by the IRS for meeting their tax status, background, experience, financial reporting, bonding, and several other quality requirements. Not many other PEOs can say the same. |
We understand that you have worked closely with them from day one and, because you’ve been so involved, you may feel like you have a good pulse on your company’s HR situation.
Which is why we understand that people sometimes fear losing control when partnering with a PEO. No need to fear…
PEOs actually give you more control over your business operations.
Most PEOs will assign your business a team with a full range of HR expertise. Because a PEO manages everything for you, you don’t have to worry about HR compliance, workers’ compensation taxes, workplace safety programs, or human capital needs.
Most PEOs also assign a single point of contact to streamline communication. Working directly with one instead of many frees up your valuable time.
Because most companies work with specific vendors for specific HR and human capital needs, those vendors tend to work in silos. This makes it nearly impossible to maximize cost-saving opportunities across your HR obligations.
Let’s say you’re dealing with rising workers’ compensation, unemployment rates, healthcare costs, and/or an increase in HR complaints. A PEO ensures workers’ compensation taxes are filed properly and paid on time. It can also help you implement a workplace safety program that can prevent future accidents. PEOs also find solutions for your HR compliance and human capital needs.
Seeing the big picture leads to a safer work environment, a lower turnover rate, and a better success rate.
Economies of scale are a major benefit to working with PEOs.
Since PEOs take on the liability and responsibility of your employees’ payroll, taxes, health benefits, unemployment, and workers’ compensation, the state technically views the PEO as a “co-employer.”
You retain full control of your business, but the co-employment relationship qualifies your company for discounted tax rates and lower premiums that you couldn’t get without a PEO. With extra cash on hand, you can invest in your employees, your equipment, or both.
When you partner with a PEO, you stay in complete control of your business. PEOs simply make it easier and more efficient to do so.
If you want to fire an employee, you can. If you don’t want to include supplemental insurance in your benefits package, you don’t have to. If you don’t want help with employee retention programs, no problem. The decision is yours.
In short, PEOs make your business simpler, safer, and stronger.
If you’re still not sure whether a PEO is right for you or you’re shopping around for a PEO, take a look at these resources:
