For many businesses, doing it alone, trying to tackle the many aspects of employee benefits can be daunting.

Keeping up with the ever-changing government regulations, insurance company requirements, and retirement benefit policies can be overwhelming. A great solution is to hand over some of these headaches to a reputable Professional Employer Organization (PEO). Because of their size, PEOs try to combine the purchasing power of their clients to get lower rates on benefits like medical coverage, personal accident and life insurance, short-term and long-term disability insurance, and retirement plans.


Getting a PEO to Take Care of the Company 401K

A good PEO is well-versed in many segments of the world of benefits, but one of the most challenging for many businesses is that of retirement, and particularly 401Ks. There was a time, about ten years ago, when employees’ 401K balance was reduced by almost 50 percent in some cases. It was so bad that this retirement vehicle was no longer considered a 401k, but a 201K! One of the problems during that time period was that employees were seeking guidance from their employers on what to do about their 401K. Unfortunately, there wasn’t much the employer could offer.

Five Questions to Ask a PEO About 401K

By getting a PEO to handle your company’s 401K, not only is the burden of offering and enrolling employees into a 401K lifted, but also, the results of what happens to someone’s 401K is now handled by professionals outside of the realm of the business leaders.

But before you go off and hire any PEO, make sure you ask the following five questions:

1. What are your 401K fees?

This is a very important question because some PEOs can bundle pricing for their services into a complicated, tangled mess. You want a PEO that explains the fees in a straight-forward, easy to understand way.

2.How do you perform record-keeping?

Ask the PEO to explain as if they are talking to a five-year-old child, how they conduct their record-keeping. This is important because it reveals if they are doing their own record-keeping or subbing it out to another vendor, which may be prone to make things even more complicated.



3. How are you monitoring?

PEOs may be able to link payroll with the 401(k) infrastructure, but that does not guarantee that they are providing full administrative services or that they will do a great job on compliance.


4. Do you offer education and advice to my employees?

You want a PEO to offer more than just a list of investments available to your employees. Many employees have no clue on how to invest, let alone where to put their investment dollars. Ensure that the PEO offers independent advice to your employees, and that they know how to create a plan design that focuses on driving employee financial wellness and retirement success.


5. What are the online aids you offer for employees?

A good PEO that offers retirement benefit services will make it simple for employees with technology that helps with enrollment, participation, communication, and management.

Searching for a good PEO to handle your company’s 401K benefits is worth the effort, and getting a PEO to handle your company’s 401K is not complicated. But just like anything else you spend your money on, make sure you understand what you are paying for.  WorksitePAY offers technology that provides employees access to professional investment management services, easy access to their retirement information, and allows employees a broad selection of investment choices and evaluation of investment success.


Johnny Duncan is a business writer and consultant partnering with business leaders to provide workforce management solutions including leadership coaching, customer service training, people-to-job matches, and conflict resolution.  He can be reached at or by visiting