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PEO Solutions for Businesses in Washington

  • PEO
  • Article
  • 6 min. Read
  • Last Updated: 11/11/2024


A Washington business works with a PEO to streamline HR tasks

Table of Contents

Almost half of state of Washington’s workers – 1.4 million – are employed by nearly 645,000 small businesses that dot the landscape of the Evergreen State.1 The entrepreneurial spirit also includes some of biggest names in their respective industries, with Microsoft, Amazon, Starbucks, Nordstrom, and Costco headquartered in the state, while Boeing was founded near Seattle.

So, it’s not surprising that the Department of Commerce in Washington lists aerospace, information and communication technology, retail trade, and agriculture among its key industries. In fact, Washington is largest apple-producing state in the nation and is also noted for wine making, which makes tourism exceedingly popular.

As for its employment outlook, Washington is one of only two states in the September edition of the Paychex Small Business Employment Watch to report a stronger jobs index in 2024 than the previous year, while Seattle was third overall among metros and one of only four cities to report job growth from the previous year – a jump of 2.01 points year over year and a 1.83-point boost from the prior month.2

Despite the job growth, large and small businesses still face challenges, including working within an ever-changing regulatory and legislative landscape that impacts compliance obligations and the time-consuming and costly endeavor of recruiting and retaining talent. A Paychex survey reported that 34% of leaders indicated their businesses spend more than 10 hours per week on HR tasks at costs between an average of $172,000 for small businesses and an average of $414,000 for large businesses.3

Let’s look at how a Professional Employer Organization (PEO) can help your Washington business.

Why Work With a PEO in Washington State?

If your business needs help with the many administrative tasks of HR, you should know a PEO can support processing payroll, administering benefits, improving workplace safety, helping to maintain compliance, and other HR tasks. And employers don’t give up control of their company, because in the PEO relationship the responsibilities of managing employees and operations stay with the client employers. A PEO also can add value by helping the HR team or offering support if an HR team isn’t in place.

There are also ongoing challenges such as recruiting, retaining, and engaging individuals – tasks that can be financially prohibitive in terms of time and cost. Holding on to good employees is crucial, especially considering that turnover can cost an average of $9,379 per employee, according to a Paychex survey.4 The National Association of Professional Employer Organizations (NAPEO) reports that businesses working with a PEO experience 12% less turnover.5

How Can Paychex Help Provide Your Business Efficiencies and Insights?

Paychex PEO* helps streamline HR administration and can help improve productivity through its all-in-one HR technology platform.

  • HR administration: Dedicated HR support can assist you with recruitment, retention and engagement, as well as with onboarding, training, handbook development, and more to help enhance employee communications.
  • HR technology: Self-service that can be used by employers and employees to save time by simplifying tasks such as updating information on payroll, benefits, and personal data.
  • Payroll administration: Payroll is processed, taxes are calculated and remitted in a timely fashion so employers can have peace of mind. Paychex PEO also can help reduce the hassles of state unemployment insurance administration.
  • Employee benefits: Keep your business competitive by providing access to Fortune 500-level benefits that top talent seeks, such as retirement plan options and health insurance (medical, dental, and vision). And since Paychex PEO is vetting benefit packages directly with carriers, you can save time and money.
  • Risk management: The Paychex PEO provides a safety specialist to provide training and audits that can help keep the workplace and your employees safe.
  • Compliance: Are you impacted by the state’s pay transparency requirements? Are you familiar with Washington state’s proposed workplace retirement plan mandate? Our HR Professionals are supported by a team of compliance analysts to help proactively identify potential risks and offer actionable HR advice.

FAQ: Fact vs. Fiction About PEO

  • Myth: Employers Could Lose Control Over Their Business by Using a PEO.

    Myth: Employers Could Lose Control Over Their Business by Using a PEO.

    Paychex PEO can provide you with greater control of your HR functions with access to advanced HR analytics tools, compliance support and guidance. You can also benefit from our PEO as we can help you reduce the risk of costly fines and penalties associated with noncompliance.

  • Myth: My Business’s Benefit Options Will Be Limited With a PEO.

    Myth: My Business’s Benefit Options Will Be Limited With a PEO.

    Paychex PEO vets benefit packages with carriers to save you time and potentially offer your business more competitive benefits. With our PEO’s collective buying power, we might also help save you money on a variety of benefits such as 401(k) administration with Multiple Employer Plan (MEP), Simplified Employee Pension (SEP), and Pooled Employer Plan (PEP) options, as well as on health and medical benefits.

  • Myth: PEOs Won’t Save Me Money.

    Myth: PEOs Won’t Save Me Money.

    Paychex PEO can support your recruitment, retention, and engagement efforts to help you find the right talent, which is critical considering the financial impact of employee turnover is about $9,400 per employee.6

1 2023 Small Business Profile, Small Business Administration Office of Advocacy

2 Paychex Small Business Employment Watch, September 2024

3 Priorities for Business Leaders, Paychex, 2025

4 Priorities for Business Leaders, Paychex, 2025

5 PEO Clients: Faster Growing, More Resilient Businesses, NAPEO, 2024

6 Priorities for Business Leaders, Paychex, 2025

*Professional employer organization (PEO) services provided by Paychex Business Solutions, LLC (Florida employee leasing license GL7), Oasis Outsourcing, LLC (Florida employee leasing license GL42), and their affiliates, which are licensed or registered to provide PEO services where required by law.

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* This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up-to-date.

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