I am working with small clients with no employees currently but getting ready to hire their first 1-4 employees. What is the best way to address all of the various issues regarding payroll, payroll taxes, workers comp, health insurance and all of the compliance issues that go along with having employees? Does it make sense to go to a PEO and let them handle all of this even with the additional cost so the the business owner can concentrate on growing the business? Should we try to do it through the
Employee issues for companies with 1-4 employees
Answers
If you have selected a well supported accounting system, they should be able to handle your payroll and
Your
Healthcare, not much choice in the marketplace but sign up everyone and make monthly payments.
Should you have an employee manual, yes/no - talk with your General Counsel.
Last issue: Always document issues with the employee. Major issues have them sign-off on receipt of your findings (ie, they received the report, not that they necessarily agreed with them). Document raises and when effective.
I wrote a blog on Tips for working with a PEO, in June 2012, "A PEO is not a “Set it and Forget it Process.” It was also posted on this site.
Personally, I like them. They serve a value until it makes economic sense to bring the processes in-house.
Good luck.
Wayne and Regis, Thank you for your feedback. It is appreciated. Regis, I read your blog. It was helpful. For this client I think the right way to go is PEO. Now the issue is finding the right one for a company with so few employees. Thanks again.