PEO in Louisiana [2024]

As a small business owner in Louisiana, whether you’re based in New Orleans, Baton Rouge, or Shreveport, it can be tough to balance all the various demands of running a company. This is where a professional employer organization (PEO) can help. PEOs offer administrative services to help businesses streamline and automate HR tasks like payroll, benefits administration, compliance management, and workers’ compensation insurance. They also enable businesses to provide their employees with access to better, more affordable benefits.

When selecting a PEO, you need to carefully consider all of your options. Rippling PEO makes it easy to hire and onboard employees in Louisiana and across the US, with automatic state tax registration, remote device management, and more.

Benefits of using a PEO in Louisiana

Working with a Louisiana PEO can help your business reduce its HR workload, gain access to more cost-effective benefits, and receive valuable support and expertise.

Offload administrative HR work

When you partner with a PEO, you and the PEO share employer responsibilities. This type of relationship is known as co-employment, where you become the "worksite employer," retaining all authority to hire and fire employees and manage overall business operations, such as R&D, marketing, sales, and customer support.

The PEO becomes the "administrative employer" for your workers. This means the PEO employs your workers under its federal tax identification number (EIN) and takes over employment-related human resources work such as payroll management, benefits administration, HR compliance, etc.

PEO companies empower your business’s HR team to focus on more strategic work that drives key outcomes by reducing their manual administrative load. The PEO streamlines HR management using a combination of technology, expertise, and established processes.

Better employee benefits, at a lower price

PEOs co-employ millions of individual workers across the US. This allows them to negotiate with third-party benefits providers for lower rates—and then pass those savings on to their clients.

PEOs also use those same economies of scale to provide their client companies with access to more robust, comprehensive benefits plans that are typically harder for small or medium-sized businesses to provide on their own. These benefits often include health insurance, life and disability insurance, worksite benefits, retirement plans, and dependent care—helping small businesses attract and retain top talent.

If you run a business in Louisiana with 50 or more full-time employees, you must provide healthcare benefits per the federal Affordable Care Act (ACA). PEOs can help you access cost-effective healthcare plans that meet the federal mandate—plus other benefits your employees want and need. 

Worry-free compliance with Louisiana laws

A PEO can help you comply with complex federal labor and employment laws and state-level and local Louisiana laws, which can be complex—and frequently changing.

In Louisiana, for example, employers are required to provide leave for specific, various purposes, like jury duty, pregnancy disability, bone marrow donation, and more. Leave laws vary from state to state, so it can be challenging to keep up with them if you employ a remote workforce. A PEO like Rippling tracks your employees’ time and attendance, automatically applies the correct leave policies based on their locations, and flags any unintentional violations so you can correct them.

PEOs also help you maintain compliance with the following:

• Payroll regulations, like employee classification, tax form issuance and filing, payroll tax reporting and depositing, and wage law compliance
• Benefits laws, like the ACA, COBRA, FSA, HSA, and other benefits-related laws
• Labor laws, including providing workers' compensation insurance, Equal Employment Opportunity (EEO) laws, and displaying state-mandated labor posters

According to the IRS, around 40% of small businesses face payroll penalties each year. So, taking advantage of a PEO's compliance support can help you and your business avoid costly fines and penalties.

Dedicated support team

If you're a small business or startup, you may not have the resources to handle time-consuming HR matters independently. By partnering with a PEO, you'll gain access to HR expertise and support. Your PEO can assist you with training managers, writing employee handbooks, reviewing safety procedures, and addressing any other HR challenges that come your way.

What to consider when evaluating a PEO service in Louisiana

When selecting a PEO service provider in Louisiana, it's essential to consider specific criteria to find the right fit for your business:

• Your business needs. Think about your business needs and what gaps you have within your team. Some common PEO offerings include:
• Payroll processing
• Tax filing and compliance
• Benefits administration
• Recruiting and onboarding
• Safety compliance and risk management
• Time and attendance tracking
• Regulatory compliance
• HR outsourcing
• Your budget. PEOs usually charge either per-employee per-month fees or a percentage of each payroll run. It's important to consider the cost of the PEO as your business grows and your headcount increases. Make sure you can afford the PEO in the long run.
• Experience and reputation. Has the PEO worked with other businesses in Louisiana before? Have you requested referrals or testimonials? Consider checking review sites like G2 and Capterra to see past and current reviews about past clients’ experiences with the PEO.
• Benefits. Review the range, quality, and cost of the benefits plans the PEO can help you access to determine whether they meet your employees' needs.
• Benefits renewal rates. Choose a transparent PEO that publicizes how its rates change so you can predict potential increases. Some PEOs increase renewal rates, resulting in unexpected costs—or the hassle of finding a new PEO after a year.
• Integrations. How will the PEO integrate with the systems, tools, and technology you currently have in place?
• Does the PEO specialize in certain industries? If your business operates in a niche industry, partnering with a PEO with experience in your field can be beneficial.
• Does the PEO specialize in certain legal or compliance issues? If your business needs to comply with federal or state regulations or has legal issues, finding a PEO with specialized experience can be helpful.
• Your exit strategy. You may eventually leave the PEO, whether you want to bring your HR processes in-house or switch to another solution. But exiting a PEO can be difficult, requiring you to remove all its systems and start anew. Ask about the offboarding process before signing a contract.

Why Rippling PEO is the right choice for your Louisiana business

Rippling PEO is the first PEO to sync HR, IT, and Finance in one platform. With a faster and more user-friendly system than most PEOs, Rippling handles all your critical compliance tasks—such as setting up state tax accounts and identifying wage violations. Did we mention the 90-second onboarding? 

From access to top-notch benefits for your team to remote device management, Rippling simplifies your work so you can focus on what matters most.

With Rippling, you get:

• All-in-one HR, IT, and Finance platform
• Powerful and customizable reporting on any employee data
• Tools to manage remote teams include tax registration, onboarding, and device management
• Access to superior benefits plans, plus transparent and predictable renewal rates
• Automatic identification of compliance infractions with recommended federal, state, and local solutions
• Automated risk management processes, including ACA and COBRA administration, anti-harassment training, and sending digital labor law posters to your employees
• Access to hundreds of HR resources, guides, and templates

If you ever decide to bring HR in-house, it's simple to transition off Rippling PEO. With Rippling, you can easily switch off the PEO and move to our all-in-one workforce management platform—no interruptions. Your HR, payroll, and employee data will be securely stored in your account, while your integrations with other systems will remain intact. Plus, your employees will maintain their current login credentials and can continue using Rippling like before.

FAQs about PEOs in Louisiana

What is a PEO, and how does it work?

A professional employer organization (PEO) provides HR solutions to companies, such as payroll, third-party benefits administration, and compliance risk assistance. PEOs generally use a co-employment model, where they become the employer of the company's workforce for tax purposes. This partnership allows companies to focus on their core business functions while PEOs handle HR tasks.

How does a PEO arrangement affect control over my employees?

As a business owner, it doesn't affect your control over the company. Your business controls day-to-day operations, hiring, and company strategy in this partnership. The PEO oversees and manages HR compliance, risk management, tax filings, and employment-related onboarding. Plus, they are there to support you with any HR challenges that may arise. 

What is a Certified PEO?

A Certified PEO (CPEO) is a type of PEO that has met certain IRS criteria related to its background, expertise, finances, and reporting. While certification is voluntary, it does demonstrate that a PEO has passed a series of evaluations. The certification doesn't represent an endorsement by the IRS. In the past, CPEO status could provide certain tax benefits to businesses, but now it's mostly obsolete. 

What size company can benefit from a PEO?

PEO providers benefit all companies, but small to mid-sized businesses can typically save the most on administrative costs by outsourcing HR tasks and accessing higher-quality benefits for lower prices.

How does a PEO charge for its services?

PEOs often charge a flat fee per employee or a percentage of the total company payroll. The total cost will depend on the services requested and your company size.

What is the implementation process, and how long does it take to go live?

The implementation process typically takes a few weeks to a few months, depending on your business's complexity and team size. During this period, the PEO will collect necessary information about your employees, such as payroll data, employment records, and benefits information. They will also evaluate your current technology to determine how they can integrate their systems to manage your human resources, payroll, and benefits administration without any interruptions.

After setting up, the PEO will typically conduct sessions introducing employees to new processes and benefits. They may also provide training on system usage and ongoing support.

Are PEOs regulated?

Yes, PEOs are regulated by federal and state laws, and many choose to become accredited by industry organizations for additional credibility.

Are PEOs in Louisiana required to have special certifications or licenses?

To legally operate in Louisiana, PEOs must register with the Louisiana Department of Insurance and the Department of Labor Workforce Commission. PEO registration must be renewed annually.

What happens if I want to terminate my relationship with a PEO?

As your company expands, it may become more expensive to continue working with a PEO, and you may decide to bring HR back in-house. Unfortunately, due to outdated processes, most PEOs make it difficult and inefficient to terminate the partnership and seamlessly transfer your data.

Switching from Rippling PEO to our all-in-one workforce management platform is as easy as switching off the PEO. All your data stays safe in your account, and all integrations with other systems stay intact.

In what states is Rippling PEO available?

Rippling PEO is available in all 50 states.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.