Professional Employer Organization

A Professional Employer Organization (PEO) is a one-stop service provider that allows business owners to concentrate on running their businesses without getting bogged down in administrative details. A PEO also allows small businesses and nonprofits to offer employee benefits that are normally provided only to much larger organizations.

Few small businesses or nonprofits can afford a full-time staff of accountants, human resource professionals, attorneys, risk managers, benefits managers, and so on. A PEO delivers these services by taking on a employer-like relationship with the employees of many small organizations, including contractually assuming certain employer responsibilities, rights, and risks.

Often referred to as the co-employment model, a PEO becomes the legal “employer of record” for employment and benefit purposes, assuming many related responsibilities and liabilities, while the small organization focuses on the fundamentals of its business. Advantages of PEOs include:

  • PEO arrangements offer a broad array of HR-related services.
  • Employees receive competitive “Fortune 500” benefits not otherwise available to small employers.
  • Health insurance premiums can potentially be lowered.
  • PEOs maintain compliance with state and federal regulations.
  • PEO clients spend less on HR administration than similarly-sized peers.
  • PEOs can play a major role in attracting and retaining employees.
  • Executives and managers of PEO clients can focus more time on strategy and growth.
  • PEOs make it possible for a small organization to grow more quickly than peers.

At Strategic Employer Planning, we represent more than a half-dozen vetted PEO’s. We will assist you in determining which PEO best suits your needs, and ensure that your transition is transparent.