Checklist for Selecting a PEO
You’ve made the important decision to work with a professional employer organization (PEO). Now the question is:
Below is a checklist that will help your decision-making process.
Step 1: Determine Your Needs
Before you talk to any PEO, you should take stock of your business needs.
What are your current challenges? Do you anticipate changes to your company that could impact which services you need?
Click through the four tabs to see related business needs for each category.
Take notes on which points are a challenge for your business, then move on to step two.
- Web-based payroll software
- Simplified payroll management
- Payroll tax administration (W-2s, W-3s, SUTA, FUTA, Forms 940 and 941)
- Management of tax records
- Simplified deduction tracking
- Fully insured health
- 401k retirement plans
- Profit sharing
- Supplemental insurance plans
- Benefit administration
- Group life
- COBRA
- Disability
- Dental
- Recruiting, pre-screening
- Job descriptions
- Employee handbook
- Employee training
- Insurance administration/procurement
- Employment policies and procedures
- Supervisory handbook
- Workplace safety programs
- Safety manuals
- Safety guidelines
- Workplace inspections
- Drug testing
- Workers’ Compensation insurance
- Workers’ Compensation claims investigation, representation, management
Step 2: Match the PEO Partner to Your Needs
After you've determined your business needs, ask the following questions to make sure the PEO you select can meet those needs.
- Do you offer the range of services that will meet my needs?
- How are your employee benefits funded?
- Can you tailor your benefits packages to meet the needs of my employees?
- Are you a member of NAPEO (National Association of Professional Employer Organizations)?
- What is your client retention rate?
- How many companies and employees do you currently represent?
- What certifications or accreditations do your employees have?
- Do you have any clients that are similar to my business?
