1-employee company, what can I manage myself?

[artur]

Hi all! I've been deep in the rabbit hole in this subreddit this week and got quite a bit of info, but really wanted some first-hand experience on my questions. Currently I am a single employee company, but we are looking to expand in the next year or two. I don't foresee us getting beyond 5-10 employees. I am an engineer by trade, and have little to no experience running a company. I have lawyers who took care of all the legal stuff, but I'm confused about payroll/HR/retirement. Here in CA, I'm told every employer with at least 1 employee needs to offer a retirement account. I currently use Paychex Flex for payroll, but I don't have a benefits admin/HR.

I have done a lot of research on Gusto/Paylocity/Paychex/BambooHR etc., but I'd really like some of your opinions. What can I take care of myself as a tiny company? What's worth outsourcing? Can I manage taking care of payroll and manually sending whatever is needed to a 401(k) account (e.g., keep payroll at Paychex Flex, use Fidelity 401(k) ). Or should I use something more fully integrated (Gusto payroll + HR + Guideline 401(k) ). Paychex wants to charge me out the ass for fully integrated payroll + HR + 401(k), which would probably make sense for a bigger company, but not a literal single-employee company. I don't think I need a PEO at the moment, but I'm just trying to get an idea of what is doable vs. not. My official title is president of the company.

I really appreciate all your help! Thank you!

 

[recall]

@artur Who does your taxes? Can they do your payroll as well? I tried doing payroll using a program and it ended up being such a pain in the ass that I happily pay someone to deal with all of that and be there when questions arise.

 

[artur]

@recall At the moment I don't think that's an option, unfortunately.

 

[rom837]

@artur According to a very quick Google search, you do not have to offer it until you have 5 employees. Maybe the people who told you that are the people who want your business handling that account.

 

[artur]

@rom837 "California recently passed legislation to expand the CalSavers mandate to employers with at least one employee. Starting on January 1, 2023, employers with 1-4 employees can register with CalSavers. This segment of mandated employers has until December 31, 2025, to register their business."

https://employer.calsavers.com/home/help-center/registration.html#:~:text=least%20one%20employee.-,Starting%20on%20January%201%2C%202023%2C%20employers%20with%201%2D4,the%20expansion%20of%20the%20mandate.

More links:

https://humaninterest.com/learn/articles/calsavers/

https://www.paychex.com/articles/employee-benefits/what-is-calsavers#:~:text=The%20new%20law%2C%20which%20takes,can%20participate%20if%20they%20want.