PEO in Mississippi [2024]

A professional employer organization (PEO) can assist small to mid-sized businesses by handling administrative human resources (HR) tasks like payroll processing, benefits administration, compliance management, and workers' compensation insurance. PEOs also help businesses offer their employees access to better benefits at affordable rates. 

Whether your workers are located in Jackson, Gulfport, or Hattiesburg, you need to stay on top of Mississippi’s state and local tax rates and labor laws. And to attract and retain great employees, you need to offer comprehensive benefits. A PEO can be a game-changer, saving your business money on benefits and HR solutions. 

Before you pick a Mississippi PEO provider, you need to know your options—and that’s where this article can help. Automatic state tax registration and remote IT device management are just a few ways Rippling PEO makes it easy to hire and onboard people in Mississippi and throughout the US.

Benefits of using a PEO in Mississippi

A Mississippi PEO service can reduce your HR workload, help you access affordable benefits, manage legal liabilities, and much more.

Offload administrative HR work

When you team up with a PEO, you enter into a co-employment relationship, where you and the PEO share employer responsibilities. You become the worksite employer, retaining full control over hiring, wages, termination, and strategic decision-making for marketing, research, sales, customer support, and more.

The PEO becomes the administrative employer and employs your workers under its federal tax identification number (EIN). This allows the PEO to handle employment-related HR tasks like payroll, compliance, benefits management, risk mitigation, and similar administrative tasks.

PEOs combine technology, expertise, and established methods to streamline HR processes. As a result, your team is able to focus on big-picture strategies for your business without getting bogged down in admin work. 

Better employee benefits, at a lower price

There are over 500 PEOs in the US, co-employing 4.5 million people at 200,000 businesses, according to the National Association of Professional Employer Organizations (NAPEO). Because PEOs “employ” so many people from different companies, they can negotiate with insurance providers to get better deals on benefits.

PEOs leverage their economies of scale to offer companies access to top-notch benefits packages, often including health insurance, life coverage, mental health support, retirement plans, and more. PEOs don’t sell benefits directly, but provide access via third-party providers. Offering benefits like these can help businesses recruit and retain top talent, which is often tough for them to do alone.

Under the federal Affordable Care Act (ACA), employers across the US with 50 or more full-time employees must provide healthcare benefits. While Mississippi doesn’t have any additional, state-level laws requiring employers to provide benefits, many employers still choose to offer additional perks because it makes them more competitive when recruiting top talent. Businesses in the state of Mississippi can use a PEO to offer access to popular benefits employees want—and at lower costs.

Worry-free compliance with Mississippi laws

A Mississippi PEO can help business owners comply with federal labor laws, as well as complex and ever-changing state and local Mississippi laws. For example, while Mississippi employers are generally required to adhere to the federal minimum wage of $7.25 per hour, there are some exceptions: 

• Tipped employees earning at least $30 in tips per month may be paid an hourly cash wage of $2.13
• Workers less than 20 years old can be paid $4.25 per hour during the first 90 days of employment
• Certain nonprofits and educational organizations might be eligible to pay workers less than the minimum wage.

Keeping up with minimum wages—especially if you have a remote workforce distributed in different jurisdictions with varying minimum wage laws—can be a challenge. A PEO like Rippling eases the burden by automatically flagging wage violations based on where your employees live. 

But minimum wage is just the beginning. PEOs can also help you maintain compliance with:

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

Violating employment and labor laws can result in costly fines and penalties. The IRS estimates that 40% of small businesses pay these penalties each year, so compliance support is a huge benefit of using a PEO.

Dedicated support team

When you join a PEO, you get direct access to their HR expertise—which you may not have internally. You not only save time and money but also get valuable advice on handling HR challenges, whether it's managing benefits, crafting an employee handbook, training managers, or polishing health and safety practices.

What to consider when evaluating a PEO service in Mississippi

To find the best PEO in Mississippi for your company, ask yourself the following questions:

• What are your business and HR needs? Some typical PEO services include:
• Payroll services
• Tax filing and compliance
• Recruiting and onboarding assistance
• Benefits administration
• Ensuring safety compliance
• Risk mitigation
• Time and attendance tracking
• Regulatory compliance
• HR outsourcing
• What’s your budget? PEOs have different pricing plans. Whether they charge per employee or a percentage of payroll, think about what fits your budget now and as your business grows.
• Has the PEO dealt with businesses like yours in Mississippi? What’s their experience and reputation like? Check out reviews on sites like G2 and Capterra to see if they have a good track record.
• Does the PEO offer affordable, high-quality benefits plans? Check what benefits the PEO offers access to and see if they match what your employees want and need. 
• What are the renewal rates for benefits? Some PEOs surprise companies with hefty increases after the first year, so make sure you're aware of renewal rates. Look for a transparent PEO that publicizes its rate changes. 
• How will the PEO integrate with your current systems, tools, and technology? The PEO’s technology should work seamlessly with your company’s existing workflows. 
• Does the PEO specialize in certain industries? If your business is in a specific niche, a PEO with experience in that field can be a bonus.
• Does the PEO specialize in certain legal or compliance issues? If your business deals with specific regulations, you may want to find a PEO with that specific expertise. 
• What’s your exit strategy? If you decide to part ways with the PEO, make sure the breakup isn't too messy. Some PEOs make it a hassle, so look into their exit process.

Why Rippling PEO is the right choice for your Mississippi business

Rippling PEO stands out as the only PEO provider to integrate HR, IT, and Finance in one platform, making your HR tasks easy and efficient—from speedy onboarding to remote IT management. Unlike many PEOs running on outdated 1980s software, Rippling uses modern, user-friendly software.

We also take care of your most important compliance tasks, like flagging minimum wage violations and setting up local and state tax accounts. 

Here's what you get with Rippling:

• HR, IT, and Finance all in one place
• Robust reporting on employee data
• Tools for managing remote teams, including tax registration, paperless onboarding, and app and device management
• Access to quality benefits plans with affordable, predictable renewal rates
• Automatic flagging for compliance issues and recommended solutions
• Automated risk management processes covering ACA and COBRA administration, anti-harassment training, and digital labor law posters
• Access to a wealth of HR resources, guides, and templates

And if you ever want to bring your HR processes back in-house, switching off Rippling PEO is easy. You can simply move to our all-in-one workforce management platform, keeping your data, integrations, and employee logins intact.

FAQs about PEOs in Mississippi

What is a PEO, and how does it work?

A PEO partners with businesses to provide HR administration services like payroll processing, benefits administration, and compliance management. They use a co-employment model, becoming the legal employer of each client company’s workforce for tax purposes.

How does a PEO arrangement affect control over my employees?

Businesses keep full control over day-to-day operations and management of their employees, while PEOs handle HR functions and employment-related tasks.

What is a Certified PEO?

A Certified PEO (CPEO) meets IRS criteria for its background, expertise, finances, and reporting. Certification is entirely voluntary and shows the PEO has passed certain assessments. In the past, certification offered some tax advantages to the PEO’s clients; however, the main advantages of PEO certification are mostly inapplicable today. 

What size company can benefit from a PEO?

PEOs serve businesses of all sizes, but small to mid-sized businesses often benefit the most, saving on HR costs and accessing high-quality benefits.

How does a PEO charge for its services?

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

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

As part of the implementation process, PEOs will typically collect employee information and set up HR systems, often integrating with your existing technology for a smoother transition. They’ll also onboard your employees and offer ongoing support. The total process can take a few weeks or a couple of months, depending on your business size and the services you need.

Are PEOs regulated?

Yes, PEOs are subject to federal and state regulations. They may also seek accreditation from industry organizations for additional credibility.

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

While no state-level licensure is required for PEOs in Mississippi, all PEOs must report monthly to the Mississippi Department of Employment Security of any dropped or added clients, including clients’ names, FEINs, mailing addresses, physical locations, phone numbers, whether they were dropped or added, and the effective date.

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

With most PEOs, ending the relationship is complex and disruptive. However, Rippling PEO makes it simple, allowing a smooth switch to our all-in-one workforce management platform.

In what states is Rippling PEO available?

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

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.