Rippling Unveils New PEO to Streamline HR for Remote Teams

Program backed by Aetna helps startups stay competitive with better employee benefits and seamless hiring nationwide


Rippling, the leading HR and IT management platform, today announced a first-of-its-kind PEO (Professional Employer Organization) that makes it easier than ever for startups to hire remotely across the U.S. and provide premium benefits without high costs or compliance headaches. The program is supported by partnerships with Aetna, Kaiser, Guardian, and other leading carriers.

“Covid-19 has made it harder for startups to compete for talent with big tech companies that offer best-in-class employee benefits and, increasingly, the ability to work from anywhere,” said Sam Altman, CEO of OpenAI and the former president of Y Combinator. “Rippling’s PEO levels the playing field. Startups get access to affordable health plans and the freedom to hire anywhere without the red tape.”

As employees scattered across the country during Covid-19, startups have faced new challenges. Companies must register separately in each state where they hire employees, in order to keep everyone insured and comply with local tax and labor laws. It’s an enormous administrative burden, and few startups have the time or expertise to handle it in-house.

“We’re offering a turnkey solution for startups that want to hire remotely,” said Matt Macinnis, Rippling COO. “We spent the past 18 months jumping through hoops in every state so our customers don’t have to. They simply sign up, save up to 30 percent on healthcare, and we handle their payroll, benefits, tax and compliance.”

By rallying startups together on one platform, Rippling’s PEO gives customers the same purchasing power and efficiencies as giants like Google or Facebook — which means better health benefits at a much lower cost. Startups save an average of $1,800 per employee per year while providing “big company” benefits that were previously out of reach.

This comes at a critical time for small businesses. With open enrollment underway, an analysis by Avalere Health predicts 12 million Americans will lose job-based health coverage by the end of 2020 as cash-strapped employers cut benefits. According to NAPEO, small businesses that join PEOs grow seven to nine percent faster, have lower employee turnover, and are 50 percent less likely to go out of business.

“Rippling was exactly what we needed to manage our people and equipment all in one place,” said Sarah Hattem, HR Coordinator at legal startup Steno. “The PEO offering was the icing on the cake, allowing us to use their services and still offer affordable health plans to our team, with all the other employer-friendly bells and whistles of a PEO. This was a no-brainer for us, and we are excited to partner with the team at Rippling!”

Rippling has already seen significant growth during Covid-19 as part of the “remote work stack” that every company now needs to onboard, offboard, and manage employees. This launch marks its expansion into a $200 billion PEO market that’s been dominated by incumbents with legacy software.

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