Big News: FounderDating is joining OneVest to build the largest community for entrepreneurs. Details here
Latest Notifications
You have no recent recommendations.
Name
Title
 
MiniBio
FOLLOW
Title
 Followers
FOLLOW TOPIC

Question goes here

1,300 Followers

  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur
  • Name
    Entrepreneur

At what size of a company does a PEO or ASO make sense?

I've got just a few employees at this point and am looking at Trinet for PEO services. I'm currently using Bank of America's payroll services (which are fine) but the California EDD payroll forms make my head spin. My receipts are sitting in a pile on my desk as well so it'd be nice to have someone take care of that as well. I'd also like to get a benefits plan together too.

Do PEOs or ASOs make financial sense for companies with just a few (ie, under 10) employees?

3 Replies

Andrea Macario
0
0
Andrea Macario Entrepreneur
CMO / Co-founder Kweak.ly
i use trinet and my company has currently 3 employees incl. myself; i recommend to negotiate heavily on their rates, particularly if you have aggressive growth plans but in general i find that when you get to 3-4 employees the cost ps start to be reasonable.

i have to say i'm pretty happy with what they provide, on payroll i basically don't have to do anything and i am able to provide pretty competitive benefits to my employees which makes our offers more attractive - not to mention the peace of mind of finally having decent benefits for myself and my family (as a foreigner i got tricked into obamacare for a couple of months and i got pretty desperate when i realized nobody that you'd actually would consider seeing is accepting it)

all in all i would recommend to go for it if you want both payroll and benefits and if you want something that can scale. only for payroll i'm not sure. it's a great service but very expensive.
Bob Binder
0
0
Bob Binder Entrepreneur
Member of Technical Staff at Software Engineering Institute | Carnegie Mellon University

I used Trinet from 2003 to 2008 for my startup, with an average headcount about 10.I would do it again, unless you can find someone who can do all of this adminstriva reliably at a much lower cost.The also can get employee health insurance at large group rates - good luck trying to get that on your own.They also provide a risk shield against employment-related law suits.A PEO will provide typical HR perks that matter to anyone who is used to getting them - that is a factor in recruiting.

I haven't priced these kind of services in a while - it was certainly worthwhile then. I'm sure there are other PEOs with a story worth listening to - shop around.

I've also used PayChex for a two person boutique.This was just bare bones payroll, although they will get you hooked up with other HR services, a la carte.These hookups weren't worth it, but I continue to use PayChex for basic payroll.

NB:if you screw up payroll on your own, you will be in world of hurt - big penalties and possible criminal charges.



Rob Gropper
0
0
Rob Gropper Entrepreneur
Director at PetHero, SPC - Member at Eastside Incubator - Principal at Tuxedo Technologies Group
for my second startup it made sense for us from day 1 (2 employees plus 2 principals). HR/payroll/benefits admin, insurance questions, employee handbook, etc. is a huge distraction... especially if you are allergic to administrative paperwork as i am :- / . When we got to about 40 employees, while efficient, it was not exactly cost effective. at 50 we switched to a direct insurance broker for insurance and benefits admin. and dramatically reduced our insurance costs. we retained the POE for payroll however which can cause some coordination headaches re benefits admin, onboarding new hires, terminations, etc. we use a small local firm in WA - customer services is great. happy to connect you if you'd like. we did not have any employees in CA, but i believe they have CA customers - don't quote me on that.
Join FounderDating to participate in the discussion
Nothing gets posted to LinkedIn and your information will not be shared.

Just a few more details please.

DO: Start a discussion, share a resource, or ask a question related to entrepreneurship.
DON'T: Post about prohibited topics such as recruiting, cofounder wanted, check out my product
or feedback on the FD site (you can send this to us directly info@founderdating.com).
See the Community Code of Conduct for more details.

Title

Give your question or discussion topic a great title, make it catchy and succinct.

Details

Make sure what you're about to say is specific and relevant - you'll get better responses.

Topics

Tag your discussion so you get more relevant responses.

Question goes here

1,300 Followers

  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
  • Name
    Details
Know someone who should answer this question? Enter their email below
Stay current and follow these discussion topics?