What is PEO?

A Professional Employer Organization (PEO) provides Comprehensive Human Resource Solutions for Small Businesses.

Payroll, Benefits, Human Resources, Tax Administration and Regulatory Compliance are some of the many services PEO’s provide to small and growing businesses.

Our relationship with a PEO gives us the freedom to focus our attention on our customers.

Why a PEO?

By providing payroll, benefits, and HR services and assisting with compliance issues under state and federal law, PEOs allow small businesses to improve productivity and profitability to focus on their core mission, and to grow.

Through a PEO, the employees of small businesses gain access to big-business employee benefits such as: 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits they might not typically receive as employees of a small company.

Using a PEO is like having a human resources department.
You have a team of HR people but only pay a portion of the expenses.

Why would a business use a PEO?

All business owners want to focus their time and energy on the “business of their business” and not the “business of employment.” Most business owners don’t have the necessary human resources training, payroll and accounting skills, knowledge of regulatory compliance or background in risk management, insurance, and employee benefit programs to meet all the demands of being a good employer. Even for the business that has a human resource department, the PEO provides valuable and complementary expertise services.

Additionally, PEO’s provide worksite employees with coverage under the entire spectrum of employment laws and regulations, including federal, state and local discrimination laws. In some cases, these laws would not apply to workers at small businesses without the PEO relationship, since many statutes have exemptions based upon the number of workers in a work force. Once included in the PEO’s workforce, the workers are protected by these laws.

Our PEO has been with us every step of the way in handling challenging issues.
The staff is always there to help us with benefits and payroll.

PEO Facts

Approximately 250,000 small and mid-sized businesses and 2.5 million people are part of PEO arrangements.

PEOs provide access to healthcare for as many as 4 to 6 million people.

The average size of a small business client of a NAPEO member is 20 employees.

To date, 40 states have adopted some form of PEO legislation and PEOs operate in all 50 states.

While only 27 percent of small businesses overall offer employee retirement plans (according to the NFIB) approximately 95 percent of NAPEO’s members offer retirement plans to their small business worksite employees. Virtually all of those offer some level of matching contribution.

Actuarial data shows that PEOs aggressively manage workers’ compensation risks and reduce the costs of workers’ compensation by as much as 25 percent for small business enterprises.

According to one business study, 40 percent of small businesses in PEO relationships upgrade their total employee benefit offerings as a result of the PEO relationship.