Article
8 min read
Author
Shannon Hodgen
Published
August 24, 2023
Last Update
July 24, 2024
Table of Contents
1. How scalable and flexible are the services?
2. How much manual work is required?
3. How comprehensive are their benefits packages?
4. Do they have in-house specialists?
5. How user-friendly is the platform?
6. What are the data management and reporting capabilities?
7. How do they protect your information?
8. How responsive is their customer service?
9. How do they ensure legal and payroll compliance?
Simplify US payroll and HR management with Deel
For companies looking to reduce administrative burdens, ensure payroll compliance with ever-changing regulations, and enhance employee satisfaction, knowing how to choose a PEO (professional employer organization) or payroll provider should be a top priority.
While a payroll provider specializes in various aspects of payroll processing, the right PEO offers a broader range of services, including HR administration, benefits administration, risk management, and compliance.
These solutions can help streamline internal processes, such as calculating and paying payroll taxes, and help companies cut costs. Consider the following factors during your PEO evaluation.
As your company grows and evolves, your software and tools must keep pace. To future-proof your investment, partner with a PEO or payroll provider that adapts to your changing HR needs. Here’s what to look for:
Consider a platform that enables you to run payroll locally and globally to facilitate domestic and international business growth, and consolidate PEO costs.
See also: How to Find Top Global Payroll Providers for Your Company
Selecting a payroll provider or PEO with automated workflows reduces the amount of manual labor involved in payroll and HR services. 85% of employers that use automation say it saves time and increases efficiency, eliminating time-consuming tasks such as document collection, payroll calculations, and pay slip delivery.
Automated processes can also increase your team’s accuracy and compliance as errors are reduced and consistency is ensured. This is especially beneficial for data reporting and analytics, as it results in precise, standardized reports that provide your team with clear and valuable insights into payroll costs, employee performance, and more.
Your platform of choice should also feature automated self-service options that allow employees to access and update personal information, view pay stubs, manage benefit enrollment, and submit requests for time off. You should also be able to streamline workflows via integrations with other software, such as accounting software or applicant tracking systems.
See also: 9 HR Processes to Automate Today (And How to Do It With Deel)
Benefits management and administration are standard PEO inclusions. A comprehensive employee benefits package attracts top talent and boosts employee retention, as benefits remain one of the top motivators for workplace turnover.
When implemented correctly, benefits packages enhance employee satisfaction by contributing to a positive work culture and positioning your business as an employer of choice.
By entering into a co-employment relationship with a PEO, you gain access to a wide range of big-company benefits at a competitive cost, including:
The ideal US PEO will also provide support for administrative tasks such as managing ACA compliance and COBRA administration. They should also provide top-tier health insurance options and workers’ compensation coverage and handle risk management on your behalf.
Overall, the benefits provided by the PEO should align with your employees’ needs and support your overall talent management strategy.
See also: Global Employee Benefits Guide: Offer a Competitive and Compliant Package
Selecting a provider with an in-house team of payroll and legal specialists not only helps you navigate complex tax and compliance issues, but also enhances your day-to-day experience as a client. Here’s how:
On the other hand, selecting a provider that outsources payroll and legal expertise may lead to communication delays as information must pass through additional channels.
These providers may also have less control over the quality of payroll and HR outsourcing services, which could impact the accuracy and compliance of payroll and legal processes and introduce security risks.
We have spent a lot of resources on researching and operationalizing and productizing all elements of compliance. So when it comes to hiring, managing, off boarding, providing benefits, all the elements of the HR life cycle, Deel ensures compliance.
—Dan Westgarth,
COO, Deel
An intuitive PEO or payroll platform will accelerate your team’s product adoption, reduce user errors, and improve the employee experience overall.
Testing the platform’s experience can be challenging without access to the PEO services or payroll provider. However, there are a few ways to work around this limitation, including platform walk-throughs.
Consider the following:
Choosing a payroll provider or PEO provider with data analytics and customizable reporting will help you drive meaningful improvements in your human resources operations. The right platform should provide insights into global employment costs, payroll reports, workforce trends, headcount tracking, and more.
When exploring a platform’s data capabilities, look for:
As a business owner, you need to perform due diligence to understand the provider’s data security measures and compliance protocols. Robust and reliable security ensures that employee information is always protected, compliance with data protection regulations is maintained, and cybersecurity risks are mitigated.
Consider the following security factors when assessing a potential PEO or payroll provider:
Review the PEO partner’s accreditation status, such as membership with the National Association of Professional Employer Organizations (NAPEO). Other optional designations include accreditation by ESAC (Employer Services Assurance Corporation), being IRS certified (Internal Revenue Service), or qualifications as a certified PEO with CPEO (Certified Professional Employer Organization).
Strada is an integration platform as a service (iPaaS) that helps move data seamlessly across organizations.
When the time came for Strada to run payroll for US-based employees, it knew that making sure everything was 100% compliant and all legal details were being followed was a top priority. In order to reach their company goals, they needed a solution and they needed it as fast as possible.
By optimizing HR and US payroll with Deel, Strada saved a lot of time, enabling them to focus on growing their business instead of taking care of state and federal regulations and compliance, I-9 verification, tax filing and payment, and more.
Amir Prodensky, co-founder and CEO at Strada says, “When it comes to US payroll, the amount of money saved exceeds thousands of dollars since we didn’t have to hire consultants to set up and maintain our payroll. We can just do it ourselves through Deel’s easy-to-use all-in-one global platform.”
Customer service plays a pivotal role when selecting a PEO or US payroll provider due to its direct impact on the overall experience and efficiency of HR functions and payroll administration.
A provider with responsive and efficient customer service ensures timely issue resolution, reliable support, and expert guidance, creating a smooth and satisfactory experience for clients.
Here are six steps you can take to evaluate a provider’s customer service:
Deel’s customer support has a 1.25-minute response time, providing payroll and PEO clients with fast and effective communication. Clients also receive support from a dedicated customer success manager and can access 24/7 in-app support.
When evaluating a PEO or US Payroll provider, prioritize compliance to safeguard your company's financial stability, reputation, and long-term growth prospects.
Lapses in compliance can result in unexpected financial burdens, such as costly fines, legal actions, and the impact of reputational damage, such as employee attrition or difficulty hiring. By partnering with a compliant PEO or payroll provider, you safeguard your financial stability, avoiding unexpected expenses associated with penalties and legal disputes.
With Deel, client companies minimize their risk of non-compliance to provide a solid foundation for global operations:
See also: Global Payroll Compliance Checklist
Deel makes payroll and HR management easy, whether you’re hiring in one state, across the country, or around the world. As an all-in-one HR solution for global teams, Deel enables you to manage everything you need to hire and pay your workforce, all in one platform, whether you’re using our US Payroll, Deel PEO*, Employer of Record (EOR), or Global Payroll.
With a 9.3 ease-of-use rating on G2, customer testimonials have described using Deel as “a seamless experience with a user-friendly interface and advanced features that make it easy to handle complex payroll and payment processes.”
*Provided by Deel PEO US, LLC, Deel Employment Services, LLC, or through Deel's partnership with licensed providers where required.
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