For small companies (say less than 50 employees), I am a big fan of using staff leasing companies to handle employee administration.  In a nut shell, the way it works is that the staff leasing company technically hires your employees and then leases them to your company.  Yes, you still make all the hiring, firing, title, salary, etc., decisions.   The staff leasing company is purely an administrative agent that brings economies of scale to your employee administration function.  To quote the website of one local staff leasing company in Syracuse (appropriately called Staff Leasing of Central New York):

“Staff Leasing helps your business by providing professional employer services designed to reduce your labor expenses. We become responsible for the administration, filing and compliance for your employees. This provides a support system for your current Human Resource Department, allowing you more time to focus on growth, selection, retention and employee development.”

Trinet is a much larger staff leasing company based on CA.   Same mission and purpose.  Just bigger.  There are many similar companies around the country.

So, allow your startup company to offer better benefit packages, including health care insurance, and also take all the burden of payroll administration and withholding off your shoulders.  HR outsourcing at its best.  Makes your life easier, and it typically won’t cost you any more either.  Good deal.