PEO Solutions for Businesses in Texas

Texas certainly corners the market on big, ranking second in economy¹ and population with nearly 30 million residents, of which 15-plus million are in the employment pool.² Texas also has one of the most-consistent performing metros for job growth in Dallas.³

Texas provides a wealth of opportunities for its 3.2 million small businesses that employ a little more than 44% of people in the state. That’s 5 million employees to administer to, so even in the pro-business environment of the Lone Star State, there still are requirements for your business. Navigating this HR landscape not only takes time away from focusing on your business, but if done incorrectly, could lead to penalties and fines.

Another way to look at the time element involved is this: 64% of companies said they spend more than 570 hours a year on HR administration, and annual pending for businesses can be as high as $350,000 annually.⁴

Let’s look at Professional Employer Organizations (PEO) and how these services can help businesses be more efficient while saving time and money.

Why Work With a PEO in Texas?

A PEO supports HR, payroll, benefits, compliance, risk management, and more. This arrangement is often referred to as co-employment. A business and a PEO establish responsibilities in the relationship, with the PEO helping support the HR responsibilities associated with payroll processing, employee benefits administration, workplace safety, and compliance maintenance. Employers continue to oversee managing employees. If you don’t have an HR team, a PEO can add value to your business by supporting whoever manages your HR function and it can also offer support to your HR staff.

More and more businesses continue to move to Texas to take advantage of its low tax rates and a diverse economy that includes advanced manufacturing, aerospace and aviation, energy, information and technology, and construction. The state boasts the nation’s largest transportation network of roads, rails, airports, and seaports. These businesses want a stable workforce, and in a competitive hiring market business owners could benefit from the reduced turnover, best-in-class benefits, and retention strategies that a PEO helps to provide. Businesses working with a PEO experience 20% less turnover, according to a report by the National Association of Professional Employer Organizations (NAPEO).⁵

How Can Paychex Help Your Business Gain Efficiencies and Insights?

With an all-in-one HR technology platform that can simplify tasks, create efficiencies through employee access to update personal, payroll, and benefits information, and enhance communication, Paychex HR PEO* can help facilitate:

• HR administration: Gain ground in a tight labor market with an improved process around recruitment and retention, not to mention training and development, and even handbook development.
• Payroll processing: Save time and gain peace of mind knowing that errors are being mitigated, and with payroll tax calculation and remittance your company has help to stay compliant.
• Employee benefits: Our PEO saves you time by vetting benefits packages with carriers and gives your business access to Fortune 500-type retirement plans and health insurance offerings to help you stay competitive for talent.
• Risk management: Your business will have a dedicated safety specialist to provide updates on federal OSHA regulations and training that can help reduce worksite risks for your employees.
• Compliance: Gain insights from a dedicated HR Professional who can help you stay current on local, state, and federal laws and regulations; COBRA; minimum wage requirements, and more, as well as offer actionable HR advice.

The advantages of working with a PEO stem beyond HR administrative support. Consider the potential growth and increased productivity your company could experience, and the peace of mind you can gain.