Has anyone used JUSTWORKS for payroll, benefits, HR, and compliance needs?

February 24, 2020

by a searcher from Dartmouth College in Allentown, PA, USA

I recently learned about Justworks. Has anyone used the service for their payroll, benefits, HR, and compliance needs?

I'm interested to learn about deploying this service (or that of any other PEO) in a small business that is going through a change of ownership. Let's assume a company with ~45 employees. Let's also assume that the current payroll and benefits package are all managed in house by a 1-person HR department that is overworked.

Thank you for any thoughts in advance!

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Reply by a searcher
from University of Florida in Miami, FL, USA

There are several questions you need to ask yourself before deciding if JW is the right fit. JW is a great PEO and I know them well. But how do you know a PEO is right for you? When you join a PEO you enter into a legal "joint-employer" relationship with the PEO. You remain the employer for purposes of hiring and firing your employees but the PEO assumes employer status for tax purposes, as your payroll taxes (FICA, FUTA, SUTA) will be filed on their FEIN. This is not a bad thing, in fact, with the right PEO it can be a most efficient HR outsourcing partnership. But I encourage due diligence beyond what you would conduct with a traditional vendor. PEOs come with high switching costs so I recommend you get it right the first time before you sign a CSA (client service agreement).

I used to consult and broker for PEOs, if you want to chat, feel free to DM me. I will help you navigate and answer questions. Good luck.

Reply by a professional
from Trinity College Connecticut in 101 Federal St, Boston, MA 02110, USA

Justworks doesn't have a great reputation. There are better PEOs and the right one depends on your type of business, needs, cost sensitivity, etc. We have a great broker that we use who only brokers PEOs and does it all over the country. Happy to connect you with her if you DM me.
Drake

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