What are the Perks of PEO?


What exactly is a PEO? and what are the Perks of PEO? Well, the acronym itself stands for Professional Employer Organization. PEOs can help your business manage payroll, benefits, and other important administrative functions.

How can a PEO take on these responsibilities? It’s all about a practice known as co-employment. This allows a PEO to provide HR support, along with other perks such as payroll and benefits administration, while your company retains responsibility for day-to-day operations.

Still not convinced that your company needs PEO services? Here are the 3 main benefits of using a PEO.

1. Payroll and Benefits

As you may know, managing payroll can eat up a lot of time. In an ideal world, business owners should be using that time to improve their business in other ways.

Thanks to PEO, internal burdens associated with payroll won’t need any hands-on involvement from owners. This includes accounting, filling W-2s, payment processing, and garnishing wages.

Partnering with a PEO also helps you provide better benefits for your employees. Otherwise, you’d have to negotiate benefits with retirement and insurance companies individually.

You won’t need to bother with administering these benefits either. The PEO will negotiate rates and guide your employees through the enrollment process in your stead.

2. Workers’ Compensation Coverage

Other than being time-consuming, workers’ compensation claims can be costly. A PEO can provide coverage and take care of any claims as they occur.

This is particularly useful if you have employees in different states. State and federal employment laws are often complex, and keeping track of them can be a nightmare. PEOs have trained staff specialized in these tasks.

3. Help with Compliance

In the event of an employment-related lawsuit, many PEOs will share the liability. Plus, their team of experts will ensure you’re aware of the laws relating to harassment.

Paid sick leave and wage equity laws can also be an issue for small business owners. If you’re managing a remote team, you’ll likely need outside help to remain in compliance.

4. Recruiting New Staff

Finding qualified people for your small business is not an easy task. Without enough time or expertise, it’s tempting to settle for whoever’s available.

If you’re in need of recruitment assistance, the HR resources within a PEO may fit the bill. If you decide to go this route, consider letting them manage the recruitment process, including the interview of your applicant(s).

An experienced recruiter can analyze prospective employees in a way the average business owner can’t. If you’re looking to increase the number of employees in the future, this service will be worth it.

More Perks of a PEO

Though these are key perks of a PEO, they’re not the only ones. Before deciding on which PEO services your company needs, you’ll need to define your expectations. This is the best way to take your business to the next level.


Looking for efficient PEO solutions? If you’re based in Florida, we may be able to help you out. Contact us for a free consultation.

Our PEO and HR Outsourcing Brokerage works with business owners to help implement unique outsourcing tools into their organization.