PEO Solutions for Businesses in New York

Running a business in New York means dealing with one of the most complex HR and compliance environments in the country. New York has more than a dozen state leave laws, a patchwork of New York City-specific requirements, and mandatory workers' compensation coverage for all employers, and that's before factoring in the day-to-day demands of managing payroll, benefits, and hiring. It adds up: most small businesses spend 7–12 hours per week on HR administration, with costs reaching up to $350,000 per year.¹

New York is also a state where the stakes are high. There are 2.4 million small businesses here, employing nearly half the state's workforce.² The talent pool is large, but so is the competition for it, making it more important than ever to stay focused on growing your business rather than getting buried in HR admin.

That's where a Professional Employer Organization (PEO) can help businesses in New York save time and money while staying focused on running their businesses.

Why Work With a PEO in New York?

Working with a PEO is a co-employment arrangement in which the PEO can support HR, payroll, benefits, compliance, and risk management while you retain control of your workforce and business. If you don’t have an HR team, a PEO can also offer support for whoever is managing your HR functions, and if you have HR staff, a PEO can add value by providing additional support.

In New York, employers have their pick of prospects from a large talent pool. Even so, in a shifting labor market created by a year-over-year rise in unemployment across the top 15 metropolitan areas, finding, hiring, and retaining that talent can be time-consuming and costly.³ Couple this with the dramatic rise in turnover costs, on average, $10,200 to $23,000 per employee per year, and working with a PEO can help save your company thousands.¹ According to NAPEO, businesses working with a PEO experience 20% less turnover, save an average of $1,775 per employee per year, are 50% more likely to stay in business, and grow 7–9% faster than businesses that don’t use a PEO.⁴

How a PEO Becomes Your Strategic HR Partner in New York

When you choose Paychex PEO*, you get access to an all-in-one HR technology platform designed to streamline HR administrative operations while improving productivity. Plus, you’ll gain greater visibility and control over labor costs.

• HR Administration: Recruitment, engagement, and retention are facilitated through onboarding, training, and enhanced communication, including handbooks with company policies.
• 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. Our PEO also handles many of the time-consuming tasks associated with the administration of benefit plans.
• Payroll: Paychex PEO processes payroll on your behalf and handles remitting your payroll taxes directly to the appropriate agencies, helping mitigate errors and potential fines. We can also help reduce the administrative burden of state unemployment insurance.
• Risk Management: The buying power of Paychex PEO may make it more cost-effective to obtain workers’ compensation insurance, which is mandatory for businesses in New York state. Your business also gains access to a dedicated safety specialist who conducts workplace safety audits, develops a tailored safety plan including employee training, and provides ongoing support to help keep your workplace compliant and your employees protected.
• Compliance: Your dedicated HR business partner keeps you informed of the legislative and regulatory changes that may affect your business. Whether you’re navigating a complex termination, updating your employee handbook, or trying to understand a new state mandate, your HR partner can provide support to help you stay on the right side of the law.

Working with our PEO has its advantages, including the greatest gift of all, peace of mind over your business.

How Does Paychex PEO Compare With Others in New York?

At a time when margins are tight, costs are rising, and hiring good workers is hit or miss, you want a partner to answer your questions, offer guidance on how to do something more efficiently, and help you mitigate risk.

When evaluating PEO providers, the differences that matter most come down to benefits flexibility, HR expertise, and technology. Here's how Paychex stacks up:

• Benefits Flexibility: Many PEOs limit you to a single carrier or a fixed package. Paychex PEO offers a wide range of benefits spanning health, dental, vision, supplemental, and lifestyle coverage, while allowing you to maintain the plans you already offer. The collective purchasing power of our PEO clients' employees means we can negotiate competitive pricing so you can customize a package that rivals those of Fortune-500 companies.
• HR Expertise: Every Paychex PEO client gets a dedicated HR business partner: a real person who gets to know your business and provides proactive guidance. Our HR business partners have an average of 8 years of field experience, so when you have a complex compliance question or a difficult employment situation, you're talking to someone who has seen it before.
• Integrated Technology: Paychex PEO brings payroll, benefits, and talent management together in one platform, reducing the administrative back-and-forth that comes with disconnected systems. You also get best-in-class tools to support recruitment and retention, helping reduce turnover costs and free up time for strategic work.

With 50+ years of HR expertise, Paychex brings the scale, experience, and flexibility that New York businesses need to stay competitive.