PEO Solutions for Businesses in Texas

Texas certainly dominates in size, ranking second in economy¹ and population with nearly 30 million residents, of which almost 15.9 million are in the employment pool.² Texas also has two of the most consistent performing metros for job growth in Dallas and Houston.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: 24% of companies said they spend six to 10 hours each week on HR administration, while 34% spend up to five hours a week. Average annual HR administration costs are $137,851.⁴

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 may be 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 assistance. Employers continue to manage their employees. If you don’t have an HR team, a PEO can add value to your business by supporting who handles your HR responsibilities, and it can also provide assistance to your existing HR staff.

More and more businesses continue to relocate 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

Paychex PEO* helps clients with talent optimization by assisting in attracting, developing, and retaining top talent through better benefits, which includes operational leverage gained by our scale and expertise that enables clients to optimize costs.

How a PEO Becomes Your Strategic HR Partner

Your business gets a step up on the competition by using 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. Your business then can outpace others by taking advantage of the strategic partnership gained from working with Paychex PEO. With your leadership group freed from time-consuming tasks, they’ll be free to focus on growth-driving initiatives and aligning HR strategy with business goals – basically, working on the business rather than in it.

Paychex PEO helps 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 you have help mitigating errors, and with payroll tax calculation and remittance your company has help staying 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.

How Does Paychex PEO Compare With Others in Texas?

The time ask for conducting HR administrative tasks brought on by the complexities of your compliance requirements – insurance, payroll, workforce management, and the list goes on – could bog down some of your more strategic thinkers. It most assuredly would be a near-insurmountable mountain to climb for those less familiar with all the ins and outs.

At a time when margins are tight, costs are rising, and hiring good workers is hit or miss, you want to find someone to answer your questions, offer guidance on how to do something more efficiently, help you mitigate risk. You want to get back to running your business. More importantly, you really want to grow your business.

It’s time to familiarize your business with Paychex PEO. We can help you better strategize for growth because we offer more than other PEOs, including:

• Flexible Benefits Offerings: We don’t work with a single carrier like Insperity or have the take-it-or-leave-it approach of TriNet. Paychex PEO leverages the plans your business offers as well as plans we sponsor, giving your employees access to a wider pool of benefits that rival Fortune 500 companies. With nearly 800,000 clients, we also can negotiate competitive pricing with carriers, giving you the opportunity to customize a package that fits your needs and your budget.
• HR Support: One of our nearly 500 dedicated HR Professionals gets to know your business so they can provide proactive HR advice. We’re not sending you to a bot to find an answer or triaging like ADP. Our HR Professionals bring an average of 15 years of experience from the field, not the one year of average tenure for an Insperity HR generalist. Our people have seen similar challenges to what your business is facing and are prepared to offer guidance.
• Technology Upside: Paychex PEO integrates your payroll, benefits, and talent management within its all-in-one HR platform to save you time on administrative tasks that take you away from your strategic endeavors. Think what you could do with more time and the money saved. Consider what it would be like to work with CoAdvantage, which has a system that lacks time tracking or accounting software integrations. We also offer best-in-class tools to enhance your recruitment and retention efforts, helping reduce administrative costs, mitigate turnover, and increase productivity.