LEARNING OBJECTIVES
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1. Know when it’s time to look for new benefits and HCM
2. What you will need to make the transition (Benefits, Payroll, HCM and
Headcount)
3. What to look for when selecting a benefits broker and HCM solution
4. How to make the transition and stick to an implementation timeline
5. Understand the challenges that occur along the way
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Benefits of a PEO
• Competitive benefits platform to attract talent
• Bundling of solutions needed to run a small business
• Reduce headcount needed to administer payroll
• Access to HR services like onboarding, compliance and employee
relations
• Worker’s Compensation coverage and administration
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Key Considerations
• Is your workforce growing?
• Is it becoming cost prohibitive to stay in the
PEO?
• Are you maturing and have a more strategic
approach to HR?
• Are you losing control of essential
processes, people and culture?
• Can you obtain similar health coverage at a
comparable rate?
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Key Considerations – Timing
• Are you able to exit the agreement without any
penalties?
• Know what are the tax implications to both the employer
and employee
o Requires adjustment on taxes due to overpayment;
o Employees may have already met their Social
Security wage requirements
o Employer loss of over payments for FICA and FUTA
taxes due to restart of liability
• If you will need to issue one or two W-2’s
• If you will need to have one or two benefits open
enrollments
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What You’ll Need - Benefits
Medical
Dental
Vision
Short & Long Term
Disability
ACA
Benefit Admin &
Enrollment
COBRA &
Unemployment
CHSA (FSA &
Commuter Benefits)
Life & AD&D
(+Voluntary)
Worker’s
Compensation & EPLI401k
Communications &
Call Center
Employee Assistance
Program
Invoice Reconciliation
Benefits
Payroll
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What You’ll Need - Payroll
State Filings
Self-Service
Leave of Absences
Processing
(International)
Employee View
(Paystubs & W-2’s)
Time-off Tracking
Tax Filings SUI Set-up
Time-Keeping
401k
HCM
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What You’ll Need –
Human Capital Management
Leave of Absences
E-signatures
I-9 & Background
Checks
Employee Data
Performance
Management
ATS
Org Charts & Directory
On-boarding/
Off-boardingLabor Law Posters
SSO & Mobile
Benefits Enrollment
ACA
Headcount
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What You’ll Need -
Headcount
Payroll Specialist HR Manager or
Director
Benefits Coordinator
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Selecting a Benefits Broker
• Brokers get paid by the carriers; no out of
pocket costs
• Quotes will be competitive; based on
company size
• Find a broker who will give you options
• Can they bundle other services such as
worker’s compensation, EPLI, carrier
connections, invoice reconciliation, etc.?
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Selecting a Benefits Broker, cont.
• Negotiate a “kick-back” to the cost of your
HCM platform
• Do they provide employee support for
questions and claims support?
• Will they conduct open enrollment meetings?
• Will they create communication tools?
• Will they provide quarterly reviews and annual
strategy planning?
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Selecting a Human Capital Management System
• How important is integration with other
systems?
• Do you need international capabilities?
• Will you be a small fish in a big pond?
• What type of service model do they provide?
• What are the implementation costs and annual
costs?
• Is there a more than one year obligation?
RFP Template and Scorecard
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Implementation Timeline
Launch
• Week 15
Production
• Weeks 12 -14
Validation
• Weeks 9 - 12
Conversion
• Weeks 8 -9
Configurate
• Weeks 5 -8
Analysis
• Weeks 2 – 6
Kickoff
• Weeks 1 - 2
Implementation Project Plan
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Change Management
• Communicate often
• Focus on the benefits of the transition
• Ensure employees understand what action is needed
• Ensure employees know the impact to benefits
• Partner with IT to make the transition easy
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Expect the Unexpected
• Prepare your Legal team for the many contracts and agreements
• Time necessary to set up carrier feeds and conduct invoice
reconciliation
• Prepare your Payroll Team:
o Premium changes from voluntary life & AD&D
o Collecting EOI’s
o Premium changes for life events
o How to handle taxes for domestic partnerships
o Tracking benefit premiums for employees on leave
LET’S STAY IN TOUCH!
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EMAIL: [email protected]
LINKEDIN: HTTPS://WWW.LINKEDIN.COM/IN/STACYSOLORIO/