PEO Solutions for Businesses in Minnesota

Minnesota offers a diverse set of industries in the Minneapolis-St. Paul area with medical device manufacturing, agriculture, other manufacturing, and finance and insurance among its main employers. Those four industry sectors employ hundreds of thousands of workers in the capital area, and the Twin Cities ranks second among major metros nationally for employment in the medical device manufacturing sector.¹

Recent data from the Paychex Small Business Employment Watch showed Minneapolis was second for job growth, trailing only Dallas among the 20 metro areas reported. Plus, it was one of only four cities nationwide to show year-over-year growth in employment.²

Minnesota also has more than 525,000 small businesses that account for 99.4% of all businesses in the state, employing 1.3 million people.³

Employers, whether large or small, must navigate a complex legislative and regulatory environment at the federal, state, and local level that can affect business requirements and time needed to handle associated HR administration. A Paychex survey revealed that 34% of leaders said their businesses were spending more than 10 hours a week on HR tasks.⁴

Let’s look at how a Professional Employer Organization (PEO) can help businesses in Minnesota.

Why Work With a PEO in Minnesota?

A PEO can support processing payroll, administering benefits, improving workplace safety, providing compliance updates, and other HR tasks. The client employer in the PEO relationship continues managing the business and its employees. A PEO also can add value by offering support if a business doesn’t have an HR team or to help an existing HR team.

The day-to-day challenges of finding and keeping top talent can be time-consuming, costly, and could affect the culture of your organization, especially if there is frequent turnover. In fact, the impact of losing a single employee can cost, on average, $9,379, according to a Paychex survey.⁵ However, businesses working with a PEO experience 12% less turnover, according to the National Association of Professional Employer Organizations (NAPEO).⁶

How Can Paychex Help Provide Your Business Efficiencies and Insights?

Paychex PEO* provides an all-in-one HR technology platform to help streamline HR administration and improve productivity. Your business also can benefit from time and attendance solutions that provide greater visibility and control over labor costs, and much more.

• HR administration: Gain dedicated HR support to assist with recruitment, engagement, and retention, plus this support can help enhance employee communications through onboarding, developing employee handbooks, conducting training, and so much more.
• HR technology: Make things simpler with a self-service platform with access for employers and employees to update information on payroll, benefits, and personal data. Your business could save time and improve communication.
• 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. Paychex PEO vets benefit packages directly with carriers and handles some administrative tasks to save you time and money.
• Payroll administration: Processing payroll and timely remitting taxes can provide peace of mind by helping mitigate errors. Paychex PEO also can help reduce the hassles of state unemployment insurance administration.
• Compliance: Do you know what your obligations are for the state’s pay transparency law that takes effect Jan. 1, 2025? Are you familiar with the requirements of the state-sponsored workplace retirement plans some businesses will have to implement in 2025? Our HR Professionals are supported by a team of compliance analysts so they can proactively identify potential risks and offer actionable HR advice.
• Risk management: The buying power of Paychex PEO might make it more cost-effective to purchase workers’ compensation insurance, which is mandatory for businesses in Minnesota. Your business also gets a safety specialist to provide training and audits to keep the workplace safe and your employees safe.