5 Best PEO Companies in Texas To Work With (2021)

Texas has a long history of independence and self-reliance, which might by why so many small business owners call it home. If you’re one of the thousands of business owners in Texas looking to enhance your operations, save money, and scale your business, then you’ve probably heard about Professional Employer Organizations, or PEO’s, that can help.

PEO’s are becoming a staple for businesses regardless of the industries they serve. Whether it’s agriculture, manufacturing, logistics or something in between, partnering with a PEO can be a boon to your bottom line. In this article, we’re going to explore why a PEO might make sense for your business.

Does Your Texas Business Need a PEO?

Any Texas-based business with at least one full-time employee is a viable candidate for a PEO partnership. This is because even with a small number of employees, the services offered by PEO’s in Texas can help reduce administrative overhead and, by extension, save money and internal resources.

Other reasons why Texas businesses hire PEO’s include:

  • The business needs help managing benefits for employees, including health insurance.
  • The business lacks expertise in the nuanced areas of Texas labor law and legal compliance.
  • The business wants to streamline or improve payroll processing.
  • The business knows it needs to hire more people, but it lacks the resources for recruiting and training.

If you’ve arrived at a point in the growth of your business where a partnership with a PEO might make sense, it’s time to begin the evaluation process. Finding the right PEO for your Texas-based business can be an involved process, but it will pay off over time as your operations improve and your employees are able to do their jobs more effectively. To start the search, it helps to know what to look for in a highly qualified PEO.

What to Look for in a Texas PEO

There’s a lot of money to be made in handling the Human Resources functions for other companies. This is why dozens of PEO’s have been established in recent years. With so many to choose from, things can get confusing pretty quickly. To help in your search, we’re offering up some of the key features of the most reputable PEO’s, so you can find one to suit your Texas business.

Among the things to consider during your evaluation of PEO’s in Texas, don’t forget these:

  1. Fees. Every legitimate PEO that serves businesses in Texas is going to charge a fee for their service. These fees vary according to the services provided, and the overall cost will often drop in accordance with how many employees the business has.

  2. Variety of services. PEO’s are known for doing more than just payroll processing. Other services available from PEO’s often include workers compensation claim management, employee onboarding assistance, tax filing help, and more. Just remember that with more services comes more fees.

  3. Advice and guidance. You might have done a stellar job getting your business to the point it’s at today, but what happens when you have a question about how best to grow into the next phase? A PEO can help with consulting services that are customized to how your company operates.

As always, it never hurts to investigate the history of any PEO you’re considering. How long have they been in business? Do they specialize in any specific industries? Can they provide references of other companies they’ve helped that are similar to yours in size or structure? In your search for the right Texas PEO, there is no knowledge that is not power.

Benefits of Using Texas PEO’s

There’s a lot to gain in partnering with a PEO. Small businesses in Texas with at least one full-time employee can begin realizing the benefits of a PEO partnership in as little as a few weeks. Depending on the size and scope of your business, a PEO can help in a variety of ways. 

For Texas businesses, some of the benefits that come with a PEO partnership include:

  • Lower cost of doing business. When the financial and time cost of managing employees drops, the profitability of a company almost always increases. This has the added benefit of allowing you to scale your business quicker and more efficiently.
  • Better insight into employee productivity. Many PEO’s offer professional development tools and reporting features that give you more data to use to make critical business decisions. These decisions can enhance productivity and worker output.
  • Improved legal compliance. Texas labor law is very complicated, and there are many ways to get caught up in non-compliance. Having a trusted PEO by your side goes a long way in ensuring this doesn’t happen.
  • Better incentives for new hires. Potential employees like to know that the employer they’re interviewing with is offering a solid benefits package. With a good PEO, offering your employees healthcare and 401(k) retirement plan benefits make you a more attractive employer. 

This is just the tip of the iceberg when it comes to the many benefits that a Professional Employer Organization can provide for your Texas business. Still have questions? Read on to see if they’re covered in our FAQ.

FAQ about Texas PEO’s

Q: How long before a new PEO is integrated into my business?

A: There’s a lot of moving parts in a new PEO partnership. There are many steps that need to be taken in order to ensure that the PEO onboarding process is a success. Because of this, the time for new PEO implementation is between two weeks and three months. Larger organizations with multiple offices in varied geographic locations could take even longer. 

Q: How do PEO’s collect their fees?

A: When your monthly or bi-weekly payroll is processed, most PEO’s will automatically deduct their expenses. They’ll also provide you with an annual statement showing exactly how much you’ve paid them, for tax purposes.

Q: If I already have a PEO, how much will it cost to change to a new one?

A: Switching PEO’s is a very time-intensive process. It requires a complete retooling of your Human Resources operations. This means that the cost can be quite high. In many cases, a PEO switch can cost between $10,000-$20,000. 

Q: In the state of Texas, which PEO is best?

A: Of the dozens of high-quality PEO’s that serve Texas, we’ve vetted the best of the best for you to choose from on our state-based PEO page.

Need a PEO in Texas? We Can Help

We understand that choosing a PEO for your Texas business is a very important decision. We’re here to help by offering you comparisons of all the best providers in the area. If you’d like to learn which PEO’s are a best fit for your small business, contact us today and inquire about receiving a free report.