FAQs

Co-employment is based on a contractual relationship between your business and a PEO where employer-related responsibilities are allocated between the parties.

Here’s what that means for you:

• Your employees are co-employed by both your company and the PEO.
• The PEO takes responsibility for certain HR tasks, shares some with you and leaves others as your responsibility.
• You keep control of daily business operations.

Learn more about the co-employment relationship.

PEOs typically offer a full suite of HR services, which may include:

• Streamlined payroll and HR administration
• HR-related risk management and compliance guidance
• Access to PEO-sponsored benefit plans
• All-in-one HR technology
• Support from a team of HR pros
• Performance management support
• Learning and development resources

Whether you operate in one state or several, HR challenges can hinder business growth. That’s why many leaders turn to a trusted HR advisor with the expertise to help you simplify people processes and navigate HR complexities. A reputable PEO can offer you:

• HR cost clarity: With the support of a PEO, you can increase your HR operational effectiveness while gaining visibility into your HR spending.
• Time savings: Get assistance with payroll and other time-consuming HR tasks, freeing leadership to focus on growth.
• HR compliance support: A PEO can help you navigate federal and state HR-related regulations.
• Employment-related risk management: Help protect your business with guidance on HR issues such as employee complaints, multistate complexities and more.

PEO pricing models vary, but the two most common structures are:

• Percentage-based: The PEO’s administrative fees are calculated as a percentage of your employees’ gross payroll.
• Flat charge: The PEO’s administrative fees are calculated as a fixed cost per employee.

The cost can also depend on factors such as industry risk and your scope of services. When considering different PEOs, take the time to get detailed proposals so you can compare.

Absolutely. A reputable PEO can:

• Inform you of significant HR regulatory changes, help you develop an employee handbook and strong HR practices and offer support in difficult HR situations
• Provide guidance on keeping employees safe in the workplace, offer safety training tools and assist with developing a basic safety program
• Support your business with workers’ compensation plan coverage and claims resolution
• Help you navigate the ins and outs of employee relations, unemployment claims, leave administration, terminations and other complex workplace concerns

These actions can help reduce your exposure to certain HR-related penalties and lawsuits. Want to learn more? Check out our HR compliance e-book for more in-depth information.

A PEO may be right for your business if you are looking for a strategic HR partner who can assume certain employer-related responsibilities, help reduce HR administrative tasks and provide HR tools and resources to cultivate your workforce. Using a PEO can assist with the following initiatives:

• Developing an HR strategy that aligns with your business objectives
• Attracting and retaining top talent
• Providing employees access to big-company benefits
• Streamlining HR administration to help increase employee productivity
• Creating a foundation for scalability
• Promoting HR-related compliance
• Reducing employer-related liability
• Consolidating essential HR functions into one system

If these are areas where you could use assistance, a PEO can offer a variety of support to meet your strategic goals.

Evaluate potential PEOs on these criteria:

• Certification: Consider whether partnering with a certified professional employer organization (a designation set by the IRS) is right for your business. Learn more about these organizations here.
• Accreditation: Check to see if the PEO is accredited by the Employer Services Assurance Corp. This is the gold standard of PEO best practices and financial reliability, and only 10% of PEOs have earned this distinction.
• Client retention: Look for a PEO with a high retention rate, as this indicates satisfaction and service quality.
• Technology platform: Ask for a tour of their HR tech platform to see if it’s intuitive or clunky.

Learn more about finding your HR match with our choosing the right PEO e-book.

Here are the general steps you need to take to begin your partnership with a PEO provider:

1. Schedule a discovery call to discuss your needs.
2. Request a custom proposal detailing services and pricing.
3. Compare proposals side by side.
4. Choose a partner, finalize the agreement and set an effective date.
5. Kick off implementation with a dedicated onboarding team.

Onboarding with a PEO typically includes the following steps:

1. A project manager helps assess your goals and needs, supporting you through the onboarding process.
2. Your project manager will begin implementation, working with different departments within the PEO to get you set up within the HR tech platform.
3. After implementation, the PEO’s service team should be available to answer questions, provide HR guidance and offer support for your HR strategy.