Can You Switch to a PEO After the New Year?

The New Year is quickly approaching and if you’re a business owner you may not have gotten all of your ducks lined up in time for January 1. Were there things you wanted to do or change in 2014 that have fallen through the cracks and won’t be ready in time?

There are lots of vendor switches or new services contracts that begin on January 1 out of the convenience of having annual contracts, but in this article we’re addressing one particular type of services company: the PEO.

Whether you’re a company looking to engage in a PEO contract for the first time, or a company that already works with a PEO but is looking to make a switch, you are probably a little bit nervous about the transition. Is it going to be an administration nightmare? Do I have to wait until next year to engage in a new contract because there’s no time left in 2013?

In short, no. It’s not going to be an administrative nightmare, and contrary to common misconception, a new PEO contract can begin at any time of the year. If you’re unhappy with your current PEO or in immediate need of cost reduction, you really shouldn’t wait an entire year to correct your situation.

Employer Solutions Plus is skilled at analyzing and delineating current PEO contracts to ensure the easiest “exit strategy” possible. We review all payroll taxes to ensure that no amount of money has been put toward SUTA, Social Security, Medicare, etc. in advance, and that the amount of health insurance deductibles that have already been paid in 2014 don’t end up being forfeited.

We also work with a handful of PEOs that are willing to offer credits for taxes or benefits already paid if there is no way to ensure a smooth transition without overlapping or duplicated costs. So, while the most convenient time of the year would have been January 1, know that you are not out of luck!

Employer Solutions Plus can identify the most convenient (but also the most cost-effective) time frame for making the switch! Call us at 727-698-6207 if you’d like some more information.