Justworks is a professional employer organization (PEO) that provides businesses with back-end support for payroll and compensation, benefits administration, and labor compliance. It offers HR tools and consultations, compliance support, 24/7 customer service, an automated payroll system, and more. Its Basic plan starts at $49/employee/month. It is best for small businesses that prefer outsourcing a PEO for their payroll needs.
Justworks Pros and Cons
Offers a variety of payroll services at low cost
Reporting needs improvement in terms of customizations
Has a full-service customer support (phone, email, SMS, chat, Slack)
No applicant tracking function
Who Justworks is Best For
- Businesses that favor using PEO to hand-off payroll tasks: Justworks acts as your co-employer which can have full control over your payroll. It will handle all the payroll processes for you.
- Small business owners who want to offer employee benefits and services that are provided by large businesses: With Justworks, you can provide your employees with access to medical, dental, and vision insurance through Aetna, Kaiser Permanente, MetLife, and UnitedHealthcare at plans and prices that are usually only available to large corporations.
Justworks’ pricing varies based on two plans: Basic (starts at $49 per employee per month) and Plus (starts at $99 per employee per month). The rate goes down as the number of employees increases. Both plans offer a 15% discount when you opt for annual billing. Below is the price breakdown for monthly billing:
Number of Employees
Basic Plan Pricing
Plus Plan Pricing
1 to 24
25 to 99
100 to 174
Last updated on 03/27/20
The cost of this plan is inclusive of the following features: payroll for salaried and hourly employees, off-cycle payments, vendor and contractor payments, employer payroll tax filings, W-2 and 1099 filings, unemployment insurance filings, employment practices liability insurance, 24/7 support, HR consulting, harassment prevention and inclusion training, online employee onboarding, paid time off (PTO) management, calendar, documents center, employee directory, accounting software integrations, reporting, commuter benefits, and plan setup.
It also gives you access to workers’ compensation insurance, life and disability insurance, health and wellness perks, fitness memberships, and 401(k) retirement plans.
This package has all the features mentioned in the Basic plan. Plus, it includes the Consolidated Omnibus Budget Reconciliation Act (COBRA) administration, health advocacy services, and One Medical. Moreover, it gives you access to medical insurance, dental and vision insurance, as well as Health Savings Account (HSA) and Flexible Spending Account (FSA).
Justworks Alternatives 2020
Small organizations/businesses in niche industries (churches, households/nannies, agriculture) that have unique payroll needs
Companies with fewer than 100 employees that want a cloud-based payroll software at a significantly low cost
Companies using QuickBooks for accounting that are legally required to offer health insurance to their employees
Startup businesses that need many customization options and want to scale with a long-standing industry leader
Small businesses that seek professional payroll services and dedicated customer service for their changing payroll needs
In addition to payroll, Justworks handles benefits, HR, and compliance, all in one platform. It also administers employment-related responsibilities for you. Below is an overview of Justworks’ most notable features.
Justworks automates direct deposits for both part-time and full-time employees. It also processes payments for contractual workers. It supports weekly and bi-weekly pay cycles for hourly and salaried non-exempt employees. Justworks syncs with time and attendance software to easily track hours and pay hourly employees.
Justworks will handle all your administrative HR tasks. It has a built-in human resources information system (HRIS) that comprises onboarding, reporting, PTO, permissions, document storage, and calendars. It also comes with an employee self-service dashboard where employees can access and view their pay stubs so you no longer have to print them.
PEO companies like Justworks leverage their group’s buying power in order to provide you access to corporate-level benefits at affordable rates, including health insurance, vision and dental insurance, workers’ compensation insurance, 401(k) retirement plans, commuter benefits, life insurance, and other wellness perks and benefits.
Justworks provides compliance support and resources, which is helpful as each state and many localities have their own labor laws that keep on changing from time to time. Justworks handles withholding, reporting, and remitting your payroll taxes, too. It files your payroll taxes, W-2s, and 1099s. It also takes care of the unemployment insurance filing, sexual harassment prevention training requirements, new hire reporting, wage garnishments, and more.
Most Helpful Justworks Reviews
Most of the Justworks reviews I read online raved about its intuitiveness. Its customer support was also described as top-notch. There were also few users who said that its reporting feature could be improved.
Intuitive interface and simplifies payroll processes
“They are great at keeping the complex things really simple—and the user interface is really easy to use and follow.”
Reporting needs updating
A user who left a negative Justworks review online suggested updating its reporting tool for better usability. He also added that Justworks does not offer much report customization options.
Justworks Frequently Asked Questions (FAQs)
Can I switch to Justworks in the mid-year?
Yes. However, it is important to note that if you switch providers in mid-year, your federal payroll tax obligations will not reset and your state payroll tax obligations will depend on the state. Also, if you are enrolled in benefits, the deductibles and flexible spending accounts (FSAs) may be affected. I encourage you to reach out to Justworks for help with the transition.
How does the billing work?
If you opted for the month-to-month commitment, you are billed for every active employee you pay through Justworks. For annual subscribers, on the other hand, you need to elect or pre-purchase a set number of employee seats for the year upon account activation.
Does it integrate with third-party software?
Yes, it does. Justworks integrates with popular accounting programs, including Xero, QuickBooks, and QuickBooks Online. It also integrates with time tracking software, like TSheets and Boomr.
Our Top Payroll Software Provider Picks
If you are not sure if Justworks is right for you, this article on the Best Payroll Services and Companies is a review of our top eight choices. Our team looked at a variety of solutions and narrowed down our recommendations based on price, ease of use, scalability, and features.