PEO Solutions for Businesses in New York

Businesses in New York state have a great deal to work with, including an economy that is the world’s 10th largest based on nominal gross domestic product and a population that is fourth largest in the United States, according to the U.S. Bureau of Labor Statistics. The median household income is $79,557.¹ There are 2.2 million small businesses in New York, which accounts for 99.8% of all businesses within the state, and they employ 4.1 million people – or 47.1% of all employees in the state.²

New York employers also must deal with legislation and regulations impacting their requirements from the state and, depending on your location, from the nation’s largest population center: New York City and its surrounding counties.

There is a time and cost element associated with navigating this HR landscape – more than 570 hours annually, according to 64% of companies, which works out to be about 11 hours per week – and businesses say the costs are as high as $350,000 per year.³

Let’s look at how a Professional Employer Organization (PEO) can help businesses in New York save time and money while staying focused on running the business.

Why Work With a PEO in New York?

When a business uses a PEO, an employer might hear this referred to as co-employment, and in such a relationship, a PEO and a business establish responsibilities. Through co-employment, a PEO can support HR, payroll, benefits, compliance, and risk management. Employers continue to manage their workforce and business. If you don’t have an HR team, a PEO can also offer support for whomever is managing your HR functions and if you have HR staff, a PEO can add value by providing additional support.

In New York, employers have their pick of prospects from a large talent pool. However, in a tight labor market created by a year-over-year rise in unemployment in every one of the top 15 metropolitan areas except NYC, finding, hiring, and retaining that talent can be time consuming and costly.⁴ Businesses working with a PEO experience 20% less turnover and save, on average, $1,775 per employee per year, according to a report by the National Association of Professional Employer Organizations (NAPEO).⁵

How Can Paychex Help Your Business Gain Efficiencies and Insights?

Paychex HR PEO can provide an all-in-one HR technology platform to help streamline HR administrative operations while improving productivity. You can also offer employees access to update their own information related to payroll and benefits. Your business also gains a dedicated HR Professional who can proactively identify risk and then offer guidance or actionable HR advice, plus you’ll benefit from time and attendance solutions that provide greater visibility and control over labor costs, and much more.

• HR administration: Recruitment, engagement, and retention are facilitated through onboarding, training, and enhanced communication including handbooks with company policies.
• Employee benefits: By providing access to highly sought after benefits such as retirement plan options and health insurance (medical, dental, vision), your business can stay more competitive for top talent. Our PEO also handles the time-consuming tasks associated with the administration of benefit plans.
• Payroll: Processing payroll and remitting payroll taxes provide peace of mind by helping mitigate errors and potential fines. Paychex HR PEO also can help reduce the hassles of state unemployment insurance administration.
• Risk management: The buying power of Paychex HR PEO might make it more cost-effective to purchase workers’ compensation insurance, which is mandatory for businesses in New York state. Your business also gets a safety specialist to provide training and audits to keep the workplace safe.
• Compliance: Your dedicated HR Professional keeps you updated on current legislative and regulatory action that might impact your business, such as the more than a dozen leave laws that could be used by your employees. Where workplace safety is concerned, N.Y. state and local government workers are covered under an OSHA-approved state plan, while private-sector employees are covered under federal OSHA.

Working with our PEO has its advantages, including the potential to help increase productivity, spur business growth, and give you peace of mind.