PEO Solutions for Businesses in Arizona
- Professional Employer Organization (PEO)
- Artículo
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Lectura de 6 minutos
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Last Updated: 08/20/2024
Table of Contents
Arizona experienced a 2.3% job growth since May 2023, which is seventh-fastest in the United States during that period, according to the Bureau of Labor Statistics. The fastest-growing industries are management of companies and enterprises (13.4%), scientific and professional (6.9%), and transportation and warehousing (6.8%).
Businesses must consistently navigate an HR landscape that presents challenging employer requirements. This takes time, which a Paychex study found amounts to more than 570 hours per year. That’s about 11 hours a week on HR administration, and for businesses that comes at a cost of as much as $350,000 annually.1
So, how can a Professional Employer Organization (PEO) help businesses be more efficient, helping to save time and money? Let’s take a look.
Why Work With a PEO in Arizona?
When a business uses a PEO, a relationship commonly referred to as co-employment exists that establishes responsibilities between the PEO and the business. A PEO supports HR, payroll, benefits, compliance, and risk management. The business owner maintains the management of employees. If you don’t have an HR team, a PEO can add value by supporting such efforts, and even if you have an HR staff, a PEO is available to offer extra support.
In a tight labor market, a PEO can provide business owners access to best-in-class benefits and retention strategies to help them reduce turnover. Businesses working with a PEO experience nearly 20% less turnover, according to a report by the National Association of Professional Employer Organizations (NAPEO).2
How Can Paychex Help Your Business Gain Efficiencies and Insights?
By providing an all-in-one HR platform, Paychex HR PEO* not only provides support for administrative tasks, but it also helps create efficiencies that can streamline operations.
- HR administration: Discover how hiring, onboarding, performance management, employee handbooks, training, development, and much more can be streamlined.
- Payroll administration: Why print and distribute paychecks? Save money and be more efficient with payroll that includes services to calculate payroll taxes and remit them, helping your business to meet its compliance requirements and giving you peace of mind that it is done on time.
- Employee benefits: Arizona is one of the most sought-after states for retirement. A PEO can help you access Fortune 500-level offerings such as retirement and health insurance benefits. Save time as Paychex HR PEO vets benefit packages directly with carriers and handles administrative tasks.
- Risk management: Arizona requires all employers with employees to have workers’ compensation insurance. Paychex HR PEO has the collective buying power to make this type of insurance more affordable to purchase. You’ll also gain access to a safety specialist who can help you reduce risk for you and your employees by conducting audits and training courses.
- Compliance: Every state has mandates of some sort. In Arizona, registering with and using E-Verify is required of all employers. Changes to laws and regulations at the federal and state level are monitored by our specialists, so you can be kept up to date on changes that could impact your business and its requirements, including those related to OSHA workplace safety regulations.
- HR technology: Giving access to employees to update some of their information on payroll, benefits, and personal data can improve communication. Plus, technology can help simplify the tasks.
The advantages of working with a PEO are far greater than just HR administrative support. Consider the potential growth and increased productivity your company could experience. Consider the peace of mind you can gain.
FAQ: Fact vs. Fiction About PEO
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Myth: A PEO Will Limit My Benefit Options.
Myth: A PEO Will Limit My Benefit Options.
PEOs might offer more competitive benefits and can save you time if they vet benefit packages directly with the carriers. The collective buying power of Paychex HR PEO might also help you lower costs. We have a variety of benefit options, including 401(k) administration with single employer plans, a Multiple Employer Plan (MEP), and a Pooled Employer Plan (PEP). Health and medical benefits include full health insurance, minimum essential coverage, multiple benefit class codes, and part-time coverage. Plus, you can offer ancillary benefits like dental and vision insurance, disability, and EAP programs.
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Myth: I Lose Control of Personnel Decisions With a PEO.
Myth: I Lose Control of Personnel Decisions With a PEO.
Paychex HR PEO helps with the burden of HR administration, but you’re still responsible for your employment decisions such as who and when to hire, promote, and terminate. PEOs can help you find opportunities to be proactive, rather than reactive, help you manage your HR administration, and can also allow you to enhance other employee engagement solutions such as benefits.
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Myth: PEOs Won’t Save Me Money.
Myth: PEOs Won’t Save Me Money.
A PEO provides access to competitive benefits and helps you streamline your HR administration, which can help save you money and time. Your business could save as much as $1,775 per employee per year, according to a NAPEO report, while the support you receive might be able to help your business avoid costly fines or even a lawsuit.2
1 2024 Priorities for Business Leaders, Paychex
2 The ROI of Using a PEO, NAPEO, 2019
*Professional employer organization (PEO) services provided by Paychex Business Solutions, LLC (Florida employee leasing license GL7), Oasis Outsourcing, LLC (Florida employee leasing license GL42), and their affiliates, which are licenses or registered to provide PEO services where required by law.
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