PEO in Missouri [2024]

Many businesses in Missouri and across the US partner with professional employer organizations (PEOs) to reduce their administrative human resources (HR) demands. A PEO manages HR functions like payroll administration, benefits, compliance, and workers' compensation insurance, so you don’t have to worry about them. 

Running a business in the Show-Me State—whether your employees are in Kansas City or St. Louis—requires complying with all of Missouri’s unique labor and employment laws. A Missouri PEO company can help small and medium businesses (SMBs) not only cut down on HR admin work but also access top-notch benefits at more affordable rates.  

There are many factors to consider when comparing PEO providers—and this article has you covered. From automatic state tax registration to remote laptop management and more, Rippling PEO simplifies hiring and onboarding in Missouri and across the US. 

Benefits of using a PEO in Missouri

Teaming up with a Missouri PEO service can cut down on your HR tasks, give you access to affordable benefits, provide your business with expert support, and more. 

Offload administrative HR work

When you join a PEO, you enter into a co-employment relationship, meaning you and the PEO divvy up employer responsibilities. As the worksite employer, you’re in control of managing hiring, firing, salaries, and the overall business strategy. Meanwhile, the PEO takes on the role of administrative employer, employing your workers under its federal tax identification number (EIN). This allows the PEO to handle employment-related HR functions like payroll, benefits management, and compliance.

PEOs leverage technology and expertise to make HR processes more efficient. With manual admin work off the table, your in-house HR team has more time to dedicate to strategic work that directly impacts your company’s success.

Better employee benefits, at a lower price

The National Association of Professional Employer Organizations (NAPEO) reports that there are over 500 PEOs in the US, collectively employing 4.5 million workers across 200,000 businesses. Because PEOs co-employ so many workers, they can negotiate lower-cost benefits with insurance providers. They don’t sell benefits directly, but provide access via third-party providers. 

Thanks to PEOs’ economies of scale, they can also provide businesses with access to a range of comprehensive benefits, often including health insurance, life and disability coverage, worksite benefits, mental health support, retirement plans, commuter benefits, and more.

While Missouri doesn’t have any local or state-specific benefits laws, the federal Affordable Care Act (ACA) requires all businesses in the USA with 50 or more full-time employees to offer health insurance benefits. PEOs can assist Missouri businesses in meeting these requirements—plus providing additional, sought-after benefits at more cost-effective rates than they could secure on their own.

Worry-free compliance with Missouri laws

Joining a PEO in Missouri is a smart move to stay compliant with the ever-changing landscape of federal, state, and local labor and employment laws. Take Missouri’s minimum wage, for example. The statewide minimum is $12.30 per hour, significantly more than the federal minimum wage. However, retail or service businesses earning less than $500,000 (gross income) annually aren’t required to pay the state minimum wage; they can set their own employee wages. The minimum wage for tipped employees is also lower. 

Staying on top of the various minimum wage requirements can be tough, especially if you have remote employees across the US. With a PEO like Rippling, you get an automated system that flags any minimum wage violations based on your employees' specific locations, ensuring you stay on the right side of the law. 

PEOs go beyond minimum wage requirements; they provide robust legal and compliance support with: 

• Payroll regulations, worker classification (employees and contractors); issuing and filing tax forms; reporting, collecting, and submitting payroll taxes to the proper authorities when due; and complying with other wage regulations, like overtime laws
• Benefits-related laws, federal sick leave laws (FMLA), the ACA, COBRA, FSA, HSA, and other benefits regulations 
• Labor laws, workers’ compensation insurance, Equal Employment Opportunity (EEO) regulations, and displaying state-mandated labor posters

Violations can lead to substantial fines and penalties. The IRS estimates that 40% of small businesses face payroll penalties annually. So, having solid compliance support through a PEO is a huge advantage.

Dedicated support team

When you team up with a PEO, you have a seasoned HR partner in your corner. You can tap into their HR expertise, which is invaluable for small businesses and startups lacking similar in-house resources. A PEO is your go-to guide for all your HR challenges, including streamlining benefits administration, creating a compliant employee handbook, training managers, and more.

What to consider when evaluating a PEO service in Missouri

Whether you’re based in Columbia, Lee's Summit, or somewhere in between, consider these factors to find the best PEO for your business:

• Your business and HR needs: Pinpoint your specific requirements, keeping in mind common PEO services 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: Find out the PEO’s pricing structure—they may charge per-employee per-month fees or a percentage of each payroll run. Consider your business's future growth plans and whether you’ll be able to afford the PEO as your headcount increases.
• Experience and reputation: Research the PEO's history and reputation. Has it worked with other businesses in Missouri? Check review sites like G2 and Capterra for feedback from current and past PEO clients.
• Benefits: Evaluate the quality, variety, and cost of benefits plans the PEO offers access to, ensuring they align with your employees' preferences.
• Benefits renewal rates: Some PEOs increase their rates significantly after the first year, so it's crucial to know the PEO’s terms of service and how costs may increase down the line. 
• Integrations: Consider whether the PEO’s technology, systems, and platform integrate with your existing tools. 
• Industry specialization: Check if the PEO has experience in your specific industry, as this expertise can be beneficial.
• Legal and compliance focus: If your business has specific legal or compliance requirements, look for a PEO with specialized experience in those areas.
• Your exit strategy: At some point, you may decide to end your partnership with the PEO, either to manage your HR processes in-house or try a different solution. Some PEOs make it challenging to end your contract, requiring you to completely overhaul your systems, which can be a huge hassle.

Why Rippling PEO is the right choice for your Missouri business

By syncing HR, IT, and Finance in a single platform, Rippling stands apart from other PEOs to streamline and simplify your workload. Unlike many PEOs that run on software built in the 1980s, Rippling runs on modern, easy-to-use software that automates your HR and IT busy work. 

From 90-second onboarding to remote IT management, Rippling takes care of your critical compliance tasks and provides your team with access to big-company benefits at lower rates.

With Rippling, you get:

• HR, IT, and Finance systems in one platform
• Robust metrics and personalized employee data reporting 
• Tools for managing remote teams, like automated state tax registration and remote laptop management
• Access to premium benefits plans, plus below-average, predictable renewal rates  
• Automated flagging and recommended solutions for compliance violations at the federal, state, and local levels 
• Automated risk management processes, including ACA and COBRA administration and anti-harassment training for your employees 
• Access to all of Rippling’s HR resources, templates, and guides

If you ever bring your HR operations in-house, Rippling PEO makes the transition a breeze. While other PEOs necessitate a painful removal process, Rippling allows you to move seamlessly to our all-in-one workforce management platform. Your HR, payroll, and employee data remains in your account. And your integrations stay intact. The best part: Employees can keep using Rippling the same way they did before. 

FAQs about PEOs in Missouri

What is a PEO, and how does it work?

A PEO is an organization that collaborates with a company to offer comprehensive HR support, including payroll, benefits administration, HR management, and compliance assistance. They typically adopt a co-employment model, where the PEO legally employs the company’s workforce for tax reasons.

How does a PEO arrangement affect control over my employees?

As the worksite employer in the co-employment relationship, you retain control over the day-to-day operations and management of your employees. The PEO takes charge of administrative HR functions and employment-related work.

What is a Certified PEO?

A Certified PEO (CPEO) is a PEO that has met specific IRS criteria related to its background, expertise, finances, and reporting. Certification is voluntary and doesn’t imply IRS endorsement—it simply means that a PEO has passed a series of assessments. While CPEO status used to provide businesses with certain tax benefits, these benefits are largely obsolete today.

What size company can benefit from a PEO?

While PEOs serve businesses of all sizes, small to mid-sized businesses often benefit the most. By outsourcing manual HR tasks to a PEO, small businesses reduce their administrative burden and free up time for strategic work. PEOs also give small businesses access to high-quality benefits plans that would otherwise only be available to larger companies. 

How does a PEO charge for its services?

PEO costs vary based on the services and the number of employees. PEOs may charge a flat fee per employee or a percentage of the total payroll.

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

Typically, the PEO first collects necessary employee information, including payroll, employment, and benefits information. Then, they’ll set up their systems to manage your HR tasks, often integrating their platform with your systems. Next, they’ll onboard your employees and conduct training sessions to make sure everyone understands the processes and benefits. 

The entire implementation process can take a few weeks to a couple of months, depending on your business size and the complexity of the services you need.

Are PEOs regulated?

Yes, PEOs must adhere to federal and state regulations and often seek accreditation from industry organizations for credibility.

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

Missouri requires all PEOs to register with the Secretary of State and submit a $500 filing fee before conducting business in the state. Some PEOs are eligible for a “Limited Registration” which has a lower filing fee. You can learn more about registration requirements here. 

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

Ending a relationship with most PEOs involves a cumbersome process of removing all PEO systems from your business. With Rippling PEO, however, the transition is simple: You can switch off the PEO and move to our all-in-one workforce management platform, leaving your systems, data, and integrations intact.

In what states is Rippling PEO available?

Rippling PEO is available in all US states, including Missouri.

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.