PEO stands for “professional employer organization.” A PEO is an outsourcing firm that provides a variety of services to small and medium-sized business.

When would you need a PEO? Perhaps when your business has grown to a certain size, you might need to create new departments that you never needed before. For instance, you might find that you need a human resources department to help in the management of your staff and their salaries. This is where you might call on a PEO to help you out.

Do You Need PEO Services?

There might be other reasons, too. For example, you might decide that you need a PEO company if a key member of your staff is retiring and you want to outsource their duties instead of trying to replace that person.

Whatever the case, at some point in your business operations and growth you might find you need a PEO company for one reason or another. However, what should your criteria be, and how will you know when you have found the right one?

Well, in Pennsylvania as well as globally there are thousands of PEO companies. What’s more, when you search the Internet, you’ll see that you have plenty of choices.

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But how will you know which ones are trustworthy? Naturally, you’ll find genuine ones such as Digital Exits. However, there are many PEO companies that make claims they don’t fulfill. This makes it difficult for business owners to make a good decision.

According to the National Association of Professional Employer Organizations (NAPEO), the United States has more than 780 PEO’s. Keep in mind, however, that these are just the ones that have registered with that organization. There are other virtual PEO companies in Pennsylvania that have not been registered. Additionally, there are three things you should look for:

3 Things to Look for in a PEO Company

1. Accreditations and Certifications

Any prospective PEO company that wants to work with you should be accredited by the Employer Services Assurance Corporation (ESAC). They should also have the Employer Certification offered by the IRS.

If you choose a PEO company that has these two certifications, you will be assured of working with the best. That’s because fewer than a hundred PEO companies in the United States are registered with ESAC. Digital Exits is one such PEO company in Pennsylvania. What’s more, this company will work with you to ensure that they properly address your business goals.

2. Experience and Resources

Most PEO companies in Pennsylvania claim to have the experience and the necessary resources to support your business. However, you should look into the details to determine whether their claims are honest.

They should give you referrals and references so you can know how they dealt with other businesses. You will also need to ask questions that are relevant to your needs to see whether the solution they offer aligns with your goals.

3. How They Determine Their Fee

Most companies offering these services will charge based either on your growth or at a fixed rate.

If you choose a company that bases their PEO fee on a percentage of your payroll, be prepared for them to increase their fee as your payroll increases. Other companies base their fees on the number of employees you have.

Conclusion

There are other factors to look into before selecting a PEO company in Pennsylvania. These include the depth of experience that their employees have, which you should ask about. However, the criteria listed here should form the basis of your research.

If you’re having trouble deciding, just reach out to Digital Exits. They can save you the hassle of trying to find a great PEO company in Pennsylvania. That’s because they are one.

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