Make your decisions by November
PEO experts recommend companies make their decisions no later than the end of November. This means starting your evaluation process now is beneficial. One reason to start early is because a typical payroll outsourcing Houston workload is heavily backloaded towards the end of the calendar year, and administrative tasks such as payroll, open enrollment, health insurance renewal, and of course, W-2’s are all due by year's end. As a result, many PEOs do 80 percent of their business in December alone. To avoid a massive headache and reporting mix-ups, it would be ideal to have all of your decisions made and ready to implement before the PEO busy season.
Allow 30 or 60 days to make the transition to a new PEO
Because of the intimately interwoven nature of most PEO-client relationships, you will want to give your current provider and your new PEO time to transition from one system to another. Depending on the size, market, and complexity of the services required, the transition could take anywhere from 30 days to as long as 90 days for large companies. Remember, the more time you allow for a smooth transition, the less opportunity for potential mistakes.
Are you considering making the move to a new PEO?
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