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How does this compare in cost to startups using justworks that has better negotiating power for cost savings in the insurance even with low amount of employees?
by Jommi 7y ago
How does this compare in cost to startups using justworks that has better negotiating power for cost savings in the insurance even with low amount of employees?
- sn 7y agojustworks is a PEO and their PEO certification is currently suspended. https://www.irs.gov/tax-professionals/cpeo-public-listings https://www.irs.gov/tax-professionals/cpeo-public-listings https://www.irs.gov/pub/irs-utl/suspended-cpeos.pdf https://www.irs.gov/pub/irs-utl/suspended-cpeos.pdf
- Jommi 7y agoAFAIK this sentence is a bit dishonest. Justworks is still a PEO, they are just not a CPEO. CPEO is a PEO that is certified by IRS to be in excellent standing, it's not a requirement.
- kevc 7y agoChoosing a PEO also means that you are outsourcing all your HR functions - payroll, retirement, benefits, etc. Part of that includes large group insurance prices. In return, you pay a per-head fee to the PEO. If cost is the primary driver for your decision the important thing is to compare the PEO fees vs how much money you will save on the discounted insurance. We have helped a few companies do this analysis - On a pure cost basis, we are a better option for some, PEOs win for others. Feel free to reach out to hn@gosavvy.com if you want advice on your specific situation.