Trying to keep this question and example generic and applicable to your client base.
Would a small business with a small number of full-time or part-time employees ever benefit from a PEO (Professional Employment Organization) to gain access to larger health insurance pools, ERISA 401K for employees, and how would that fit into the trifecta?
In prior podcasts Mark has opined in the lack of great and affordable Health Insurance options for small business owners that can’t get coverage through a spouse. A very common scenario amongst your clients. Wanting or needing to provide benefits (Health & Retirement) to a very small number of employees (and wanting to grow) is a challenge. Solo K and HRA are off the table. ERISA plan administration costs are a big burden and difficult to navigate and group health for a very small pool with owners closer to Mark’s age than Matt’s, or having health issues gets pricy quick and drives up the cost for young healthy staff in such a small risk pool.
In exploring options I have pondered an PEO (Professional Employment Organization or Co-employer) but I have not heard this topic addressed by Mark/Matt, Matt/Mark. Is this because it’s a BAD idea, not commonly utilized, or some other reason? Any insight you can provide is appreciated!