Overview
Justworks is a modern Professional Employer Organization (PEO) platform that provides small and medium-sized businesses with enterprise-level benefits, streamlined payroll, HR compliance support, and employee management tools. By co-employing workers with client companies, Justworks enables access to Fortune 500-quality health insurance, 401(k) plans, and other benefits while handling payroll taxes, compliance, and HR administration through an intuitive, user-friendly platform.
Pros & Cons
Pros
- ✓Access to large-group health insurance plans with better rates
- ✓Extremely user-friendly platform requiring minimal training
- ✓Fast, accurate payroll processing with automated tax filing
- ✓Comprehensive benefits including medical, dental, vision, and 401(k)
- ✓Dedicated customer support with responsive HR consultants
- ✓Transparent pricing with no hidden fees
Cons
- ✗As a PEO, becomes co-employer which some businesses find limiting
- ✗Higher cost than traditional payroll-only solutions
- ✗Less flexibility in benefit plan customization
- ✗Some states and industries not supported
- ✗Must switch away from existing benefits broker relationships
Who Should Use This?
Best For
- →Small businesses (5-200 employees) seeking enterprise benefits
- →Startups wanting to offer competitive benefits packages
- →Companies spending too much time on HR administration
- →Organizations without dedicated HR staff
- →Businesses wanting predictable, all-inclusive HR costs
Not Ideal For
- →Very small businesses with 1-4 employees (minimum requirements)
- →Large enterprises with existing HR infrastructure
- →Companies requiring extensive benefits customization
- →Organizations uncomfortable with co-employment model
- →Businesses in industries Justworks doesn't support
Key Features
Implementation
Implementation typically takes 2-3 weeks from signup to first payroll. Process includes employee data collection, benefits enrollment, payroll setup, and platform training. Justworks provides dedicated onboarding specialists to guide the transition.
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Quick Info
Justworks pricing starts at $59/employee/month for Basic plan with payroll, benefits, and compliance. Plus plan at $99/employee/month adds HR tools, compliance resources, and dedicated support. Contractor-only accounts available at $49/month for up to 10 contractors. Minimum 5 employees required for PEO services.
📋 Implementation Guide
Step-by-step guide to implementing Payroll software
View Guide BelowOpen Full Guide PageImplementing Payroll Software
Critical guide to implementing payroll software without disrupting employee payments.
Implementation Steps
Understand all payroll requirements and plan transition timing.
Key Tips:
- Review all federal, state, and local tax requirements
- Document current payroll process and frequency
- Identify all deductions (benefits, garnishments, etc.)
- Plan go-live date (start of quarter preferred)
- Notify employees of upcoming changes
- Get buy-in from finance/accounting team
Common Mistakes to Avoid
- ×Not running parallel processing - too risky to go straight to live
- ×Choosing end-of-year for go-live - tax reporting nightmare
- ×Missing obscure deductions or garnishments
- ×Not verifying bank account numbers - payments go to wrong accounts
- ×Insufficient testing of tax calculations - penalties are severe
- ×Not having a rollback plan - leaves you stranded if issues occur
Best Practices
- Always start at beginning of quarter for clean tax reporting
- Run at least 2 parallel payrolls before going live
- Over-communicate with employees about changes
- Keep old payroll system active for 1 quarter after cutover
- Create detailed audit reports comparing old vs new
- Have your accountant review configuration before go-live
- Build in buffer time - process payroll 2 days early at first
- Document everything for compliance and audit purposes
Frequently Asked Questions About Justworks
Common questions about Justworks, including pricing, features, integrations, and who should use it.