Top 5 PEOs Aiding Small Teams in Arizona

Owning a small business in Arizona can be an exciting adventure; however, providing excellent employee benefits to compete against larger employer organizations may seem like an impossible challenge to achieve. Your goal is to hire top talented individuals to your team. However, due to the cost associated with providing medical benefits, HR solutions, and administering payroll functions, those costs can quickly add up.

This is where a Professional Employer Organization - also referred to as a PEO - can help by taking care of your payroll, HR, employee benefits, and compliance issues, allowing you to direct your focus on actually growing your company. Furthermore, by using a PEO you and your employees will have access to benefit packages that are typically only available to larger employers.

In this article, we will provide you with a detailed overview of the top 5 PEO companies you should consider utilizing if you own or manage a small business in Arizona.

Why PEOs are an Excellent Choice for Small Companies

Prior to discussing providers, let's outline the benefits of using a Professional Employee Organization (PEO) to support small teams in Arizona. The fast-growing business process outsourcing (BPO) sector has led to an increasing number of small businesses utilizing outsourced solutions such as PEOs, so they can remain competitive in today’s economy.

Large Group Buying Power for Better Benefits

A PEO pools employees from all of its client companies together. That combined group gives them the leverage to negotiate medical, dental, and vision plans that a 10 or 20-person company could never get on its own. We're talking Fortune 500-level coverage at a fraction of the cost.

Staying Compliant With Arizona Employment Laws

Arizona has its own set of rules that business owners need to follow. There are earned paid sick time requirements, specific timelines for final pay when someone leaves, and other regulations that can trip you up if you're not paying close attention. A good PEO stays on top of all of this so you don't have to worry about costly mistakes.

More Time to Focus on What Matters

Payroll processing, benefits enrollment, onboarding paperwork, workers' comp - these tasks eat up hours every week. When a PEO takes them off your plate, you get that time back to focus on your clients, your team, and your revenue.

Top PEO Providers in Arizona Worth Considering 

Now let's look at five providers that stand out for small businesses in this state.

Helpside: Best for Small Teams and Charter Schools

Helpside is a PEO with a dedicated Arizona office in Phoenix, and they specialize in working with small and mid-sized businesses. What makes them different is the level of benefits they bring to the table.

Clients get access to Fortune 500-level medical plan options that are typically unavailable to small teams, with average savings of around 20% on medical premiums. That's a significant number when you're watching every dollar.

Each employee gets to choose from six different medical plan options, including traditional PPO plans and HSA-qualifying options. On top of that, supplemental benefits like dental, vision, life, disability, and accident insurance come at no additional cost to the employer.

Every client gets a dedicated Payroll Specialist and Client Success Manager who actually gets to know your business. It's not a generic call center experience.

Helpside is an ideal solution for charter schools and education organizations in Arizona seeking competitive benefits on a limited budget.

Paychex: Best for Scalable Payroll Technology

Paychex, also a nationwide provider with an established presence in Arizona, offers an advanced HR and payroll technology platform. If you are a business owner who prefers a tech-savvy and self-service offering with minimal to no manual assistance, then Paychex could be a good option for you. Their systems are easily scalable as your company advances and will be practical for business owners with an anticipated rapid growth trajectory.

ADP TotalSource: Best for Larger Small Businesses

ADP is one of the leading providers of PEO services nationwide and their TotalSource solution is designed for larger small businesses and provides extensive benefits administration, talent management tools, and compliance assistance. ADP serves enterprises with more than 50 employees and is therefore a better solution for businesses that require robust infrastructure. If you have a small team, the costs of ADP may exceed your actual requirements.

Justworks makes it easy for tech start-ups or remote-only companies

Justworks has a clean, modern, and user-friendly interface. Their pricing model is simple and straightforward, and the benefits enrollment process is simple. If your teams are spread across different states or would like a hassle-free experience with a PEO without any excess complexity, consider Justworks.

Industry Specific Vensure Employer Solutions

Vensure provides PEO (professional employer organization) services to a number of different industries including healthcare, hospitality, and the trades. If your company is in a specialized industry and you need an industry-specific solution to understanding the specific compliance requirements and risks of your business, I highly recommend you check out Vensure.

How to Choose the Right PEO for Your Business?

With all of the great options available, how do I choose the right PEO for me?

Evaluate the Quality of Employee Benefits and What Choices Employees Have

Don't limit your investigation to whether or not the PEO will offer health coverage. Dig deeper. How many plan options do employees actually get to choose from? Are HSA-qualifying plans included? What about supplemental benefits like dental and vision? The more choice your employees have, the more attractive your company becomes to top talent.

Think About the Level of Support You Need

Some PEOs lean heavily on technology and give you minimal human interaction. Others, like Helpside, assign a dedicated team to your account so you always have someone who knows your business. Think about what your team actually needs. If you are new to Human Resources and dealing with these types of issues, having an actual person to help you can be invaluable.

Inquire About Pricing Transparency

Before signing any agreements ask the PEO about any administrative fees and how much they will charge you on a per employee basis for things like dental and vision insurance as well. The best PEO partners will always provide information on their pricing and will not have hidden surprises.

Investigate If They are Knowledgeable about Arizona Law

PEOs that provide services outside of Arizona may not be familiar with the specifics of Arizona employment law. You want a provider that knows the state's earned paid sick time rules, wage payment timelines, and local compliance requirements inside and out.

Why Charter Schools and Education Organizations Should Consider a PEO

If you run a charter school in Arizona, you know the struggle. Budgets are tight, turnover is high, and you're competing with large school districts that can offer better benefits to teachers and staff.

A PEO partnership changes that equation. Through a PEO, charter schools can offer medical, dental, and retirement benefits that rival what larger districts provide, without the administrative burden. This helps attract quality educators and keep them around longer.

For education organizations that need to stay compliant with Arizona employment laws while keeping costs under control, working with a PEO that specializes in small team support is one of the smartest moves you can make.

Conclusion

If you run an Arizona Small Business, you do not need to settle for scarce benefits or spend an inordinate amount of time on HR paperwork anymore; The right PEO will provide you with the ability to obtain Enterprise-Level medical plans, help you comply with State Laws, and give you the time that you need to grow.

Do a thorough review of the Providers listed above to compare offerings and obtain Pricing that suits your Team's size and needs; The perfect fit is out there, and may be the Key to your ability to grow successfully, as opposed to just surviving.

Common Questions Asked

What is a PEO, and how can it benefit small businesses?

The PEO provides Employer Shared Worker Compensation duties with you through their Shared Services model. They provide for you: Payroll, Benefits, Human Resources, & Compliance Assistance, while allowing you to remain in control of the day-to-day operations of your team. This setup gives small businesses access to benefits and resources that would normally only be available to larger companies.

How much can a small business save by partnering with a PEO in Arizona?

Savings vary depending on the provider and your team size, but many small businesses see around 20% savings on medical premiums alone. When you factor in reduced administrative time, fewer compliance mistakes, and lower turnover from better benefits, the overall cost savings can be significant.

Can the services of a PEO provide charter schools and education-related entities with all the services they need?

Yes. Charter schools may often have challenges in providing the same level of benefits for their employees as larger school districts do, so the use of a PEO will allow charter schools to offer their employees comparable medical, dental, and retirement benefit plans... in addition to saving time and money by helping to administer compliance and HR functions, thus allowing charter schools to compete for and retain high-quality educators, without putting additional strain on their already tight budgets.

How can I determine which PEO is the best fit for my business?

When selecting the best PEO for your business, you will want to compare the quality and variety of benefits provided by the PEO, the level of support you will receive from the PEO, the pricing structure (whether it includes all services), and the level of expertise the PEO has with regard to Arizona-specific employment legislation. Once you have received and compared proposals from several PEOs, you can make a very informed decision on the best PEO for your business.