14-point people check
Payroll and benefits: the two decisions
Payroll: keep Paychex, switch, or PEO?
Quote itAn asset deal means a new employer on Day 1 regardless, so the payroll decision is free. 35 W-2 employees, one home state, multi-state install work and no group health plan is the profile where a PEO usually prices well against a standalone payroll plus a new benefits plan.
Benefits: the stipends
Fix at closeAbout $350 a month is being paid to some employees for health coverage, outside any plan. Paid as cash, it's taxable wages. Tied to buying coverage, it can break the ACA market rules, with a per-employee daily penalty. And it's uneven across staff. You inherit the practice on Day 1 unless you change it.
- Closing-date PTO balances: payout by the seller, or credit to the buyer.
- The health stipend practice: who carries pre-close exposure, and the Day 1 change.
- Terminated 401(k): whether the plan was properly wound down.
- Seller's unemployment experience rating: whether it follows the business in New York. We'll pull it.
- The disclosed prior employee matter.
We send the facts and the documents behind them. The legal position and the language are SMB Law's.
Everything marked Fix, Confirm or Not reviewed above is the transition work: the document review we haven't done, the registrations, the payroll and benefits setup, the offer letters, the handbook, Day 1 and the first payroll. We scope it and send a flat-fee quote within two business days.