PEO in Wisconsin [2024]

With the help of a professional employer organization (PEO), small to mid-sized businesses can reduce the demands administrative HR tasks place on their teams. PEOs automate and streamline common HR functions like benefits administration, payroll, compliance management, and workers’ compensation insurance—while also providing companies with access to benefits that are both more affordable and higher quality than they can typically access on their own. 

Wisconsin-based businesses may benefit from using a PEO service for many reasons. For starters, owning and operating a company in the Badger State can be tough due to rapidly rising costs in the last few years. A PEO can offer small businesses in Wisconsin cost savings that make things easier. And access to high-quality benefits can give your company a competitive edge.

Before you choose a PEO, though, you should evaluate your options with care. This article is a great place to start. From remote laptop management to automatic state tax registration, Rippling PEO makes hiring and onboarding employees in Wisconsin and across the US a breeze. 

Benefits of using a PEO in Wisconsin

By working with a Wisconsin PEO, you can gain access to valuable support and expertise, reduce your administrative HR tasks, and save money on employee benefits.

Offload administrative HR work

PEOs co-employ your workforce, and the two of you split up employer responsibilities. You become the worksite employer and keep all authority not only over who you hire and how much you pay them, but also company strategy and operations, including marketing, research and development, sales, and so on.

The PEO becomes the administrative employer. They employ your workforce under their own federal tax identification number (EIN) for tax purposes and take over employment-related human resources work like managing payroll and benefits, handling HR compliance, and more.

PEOs are able to streamline HR management for their client companies through a combination of tried-and-tested processes, technology, and years of expertise. And without the need to handle manual, time-consuming HR tasks using limited internal resources, your team is free to focus on the strategic work that drives your bottom line.

Better employee benefits, at a lower price

PEOs “employ” a significant number of workers across the US: According to the National Association of Professional Employer Organizations (NAPEO), these service providers co-employ 4.5 million individuals at 200,000 companies. That gives PEOs the bargaining power to negotiate with insurers and provide their client companies with access to benefits at a lower cost.

These economies of scale are also used by PEOs to give their client companies access to the robust benefits plans that help them gain a competitive edge in the talent search. Many PEOs offer access to health insurance, worksite benefits, retirement plans, mental health support, commuter benefits, life and disability insurance, dependent care, and more. This is especially useful to small businesses, which can have difficulty offering such comprehensive benefits packages on their own.

Under the federal Affordable Care Act (ACA), businesses in the state of Wisconsin (and everywhere else in the US) with 50 or more full-time employees are required to provide the healthcare benefits. A PEO can help Wisconsin business owners deliver on this mandate—and often at more affordable rates than they would have been able to secure on their own.

Worry-free compliance with Wisconsin laws

In addition to federal labor and employment laws, a PEO can help you comply with Wisconsin state and local laws. State laws are complex and frequently changing, which can make them a challenge to keep up with. 

For example, Wisconsin requires most employers with three or more employees to provide workers’ compensation insurance. But workers’ comp requirements vary by state, so staying compliant—especially if you have remote workers in different locations—can be tough. A PEO like Rippling automatically keeps tabs on local laws based on your employees’ locations—and can provide convenient, pay-as-you-go workers’ compensation plans that fulfill local legal requirements—so you know you’re always on the right side of the law.

In addition to workers’ comp laws, PEOs can help you maintain compliance with:

• Payroll regulations, which include classifying employees and contractors correctly to avoid penalties; reporting, collecting, and depositing payroll taxes with the right authorities by the correct deadlines; issuing and filing tax forms; and complying with other wage laws, such as minimum wage and overtime requirements
• Labor laws, including displaying the state-required labor posters, supplying workers’ compensation insurance, and helping you follow Equal Employment Opportunity (EEO) laws
• Benefits laws, including ensuring you remain in compliance with federal laws like the ACA, COBRA, FSA, HSA, and any other federal or state benefits-related regulations

If you violate any of these laws, you can find yourself in hot water. Noncompliant businesses can face costly fines and penalties, and according to IRS estimates, 40% of small businesses pay payroll penalties each year. This makes compliance support a significant benefit of using a PEO service.

Dedicated support team

PEOs are HR experts. When you join one, you’ll gain access to their wealth of experience and expertise. This can be especially valuable for small businesses that are lacking those resources on their own teams. In addition to helping you save time and money, your PEO can provide you with guidance on things like creating an employee handbook, streamlining benefits administration, training managers, and more.

What to consider when evaluating a PEO service in Wisconsin

There are many PEO services to choose from in Wisconsin, so it’s important to consider the follow criteria while you’re evaluating your options:

• Your business needs. Think about the services you need a PEO to provide. Some common services they offer include:
• Payroll processing
• Safety compliance and risk management
• Time and attendance tracking
• Regulatory compliance
• HR outsourcing
• Tax filing and compliance
• Benefits administration
• Recruiting and onboarding
• Your budget. Your PEO will likely use one of two different pricing structures: a per-employee, per-month fee or a percentage of each payroll run. Keep in mind that the more employees you have, the greater the cost may be. 
• Experience and reputation. A PEO’s experience and reputation are important factors to consider, so check out review websites like G2 and Capterra to see what past and current clients have to say. Has the PEO worked with other Wisconsin businesses before? Is it well-regarded?
• Benefits. The benefits your PEO offers access to should align not just with your budget, but also with the wants and needs of your employees. Explore the range, quality, and cost of the benefits plans offered. 
• Benefits renewal rates. This is important to consider, since some PEOs attract businesses with costs that are initially low only to jack up their renewal rates. You don’t want to find yourself with unexpected costs or the arduous job of having to find a new PEO after just one year. Look for a PEO that is transparent about how its rates change.
• Integrations. Consider how the PEO will integrate with your existing technology, systems, and tools.
• Does the PEO specialize in certain industries? Businesses in niche industries may want to seek out a PEO with specialized experience in their field. 
• Does the PEO specialize in certain legal or compliance issues? Some businesses have industry-specific federal or state regulations they need to comply with. If this applies to you, be aware you can find a PEO with specialized experience.
• Your exit strategy. At some point, you might want to leave your PEO because you’ve expanded to the point where you can move HR processes in-house or simply because you’d like to go with a different solution. Thinking about this eventuality before joining a PEO is best, as many providers make it difficult to leave by requiring you to painfully rip out all their systems and start over from scratch.

Why Rippling PEO is the right choice for your Wisconsin business

While many PEOs still run on software that was built 30 years ago, Rippling PEO is a modern solution that’s also the first PEO to sync HR, IT, and Finance in one platform. With Rippling, all your busy work becomes simple and streamlined—from 90-second onboarding to remote IT management. 

With our fast, easy-to-use software, we handle all of your critical compliance tasks—like setting up state and local tax accounts and automatically flagging minimum wage and overtime violations. Rippling also provides your team with access to Fortune 500-quality benefits at affordable costs.

With Rippling, you get:

• HR, IT, and Finance in one platform
• Powerful and customizable reporting on any employee data
• Tools for managing remote teams, including state and local tax registration, paperless onboarding, and app and device management
• Automatic flagging for federal, state, and local compliance infractions, along with recommended plans to fix each one
• 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
• Access to superior benefits plans, plus below-average, predictable renewal rates

And if the day comes when you decide to bring HR in-house, Rippling is easy to work with. While other PEOs require a disruptive tearing-out process, with Rippling, you just switch off the PEO and seamlessly transition to our all-in-one workforce management platform. Your integrations with other systems remain intact, your HR, payroll, and employee data stays stored in your account, and your employees keep the same logins—so they can keep using Rippling the same way they know how.

FAQs about PEOs in Wisconsin

What is a PEO, and how does it work?

PEOs partner with businesses of all sizes and provide them with comprehensive HR solutions. These include payroll, HR management, benefits administration, and compliance assistance. Typically, PEOs operate under a co-employment model, in which they legally become the employer of the client company’s workforce for tax purposes.

How does a PEO arrangement affect control over my employees?

The PEO handles HR functions and employment-related human resources work, but the business retains control over its day-to-day operations, as well as employee management.

What is a Certified PEO?

Once upon a time, becoming a Certified PEO (CPEO) could provide certain tax benefits to businesses. While these advantages of becoming certified are pretty much obsolete today, some PEOs still choose to undergo a voluntary assessment to demonstrate they’ve satisfied IRS criteria relating to their finances, background, expertise, and reporting. 

What size company can benefit from a PEO?

Companies of all sizes can benefit from working with a PEO services provider, but small to mid-sized businesses and startups tend to benefit the most. That’s because PEOs help them save money on administrative costs by outsourcing manual HR tasks, which leaves their teams free to focus on higher-level strategic work. PEOs also provide them access to cost-effective, high-quality benefits plans they might not have been able to provide on their own.

How does a PEO charge for its services?

What you pay for a PEO ultimately depends on what services you need and how many employees you have. Typically, PEOs charge either a flat fee per employee or a percentage of your total payroll. 

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

Usually, during the implementation process, a PEO will collect the information it needs about your employees. This will include payroll data, benefits information, and employment records. They’ll also set up their systems to take on your HR administrative work, a process that may include integrating their software with your tech stack. They may also conduct onboarding sessions with your team, train your employees to use their new systems, and explain the new process you’ll be using and the new benefits you’re offering.

All told, the implementation process could take anywhere from a couple of weeks to a couple of months. It depends on the complexity of the services you require and the size of your business.

Are PEOs regulated?

PEOs are required to comply with federal and state regulations. Additionally, many choose to be accredited by industry organizations to enhance their credibility.

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

Yes. In Wisconsin, PEOs must register with the state’s Department of Financial Institutions before operating, except under certain circumstances (like if they’re registered in another state and don’t have a physical office in Wisconsin). Registration must be renewed annually for the PEO to stay in good standing.

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

When you end your relationship with a typical PEO, it’s often a painful, disruptive process that requires you to remove their systems from yours entirely and find new systems to handle all the work they did for you. 

With Rippling PEO, moving off the PEO is as simple as switching it off and moving to our all-in-one workforce management platform, leaving all your systems, data, and integrations intact.

In what states is Rippling PEO available?

Rippling PEO is available in all 50 US 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.