Benifits Of Using PEO Services

7 Reasons Your Business Should Use a PEO

A Professional Employer Organization (PEO) is an external company that offers organizations a full range of HR services, such as HR technologies, payroll management, employee benefits, workers’ compensation, safety consulting, and access to a team of HR experts. The majority of small firms don’t have the depth of HR expertise or system capabilities for services like payroll and HRIS. They can complete these duties with ease if they adopt a PEO.

So, the main query is: How Can PEO Service Really Help Your Business? PEOs reduce liability and increase efficiency, so you might have more time to concentrate on your business’s core competencies and be better prepared for development.

The National Association of Professional Employer Organizations claims that businesses that use PEOs grow about 10% more quickly than their rivals and see up to 14% less turnover.

Let’s move on with it without any more delay!

Why Use PEO?

Due to their multiple benefits, PEOs are growing in popularity among businesses. The following are the top 7 benefits of adopting PEO in your business:

1. Reduce Administrative Costs

Even the most skilled HR professionals might be slowed down by administrative duties. It takes time, effort, and legal knowledge to stay on top of changing labor laws and create plans to bring improvements to your company’s operations.

2. Increased Benefit Access

A world-class benefits package, which includes premium health insurance and retirement options like retirement accounts, is one of the most efficient methods to draw in, retain, and motivate employees in addition to offering a competitive salary.

3. Reduced Risk

Every firm faces some level of risk, but you may take precautions to reduce it and the likelihood of a worker lawsuit or regulatory action. One method to achieve this is through your PEO, which provides a handbook consultation where HR specialists may review your policies and assess your compliance with the established standards and processes.

4. Software consolidation

A PEO accomplishes this by giving you access to their software, which centralizes all of your HR data. PEO has security levels that make sure only people with the proper authorization can access certain information.

5. Continue to comply

Compliance with local, state, and federal labor laws can be difficult. It can lead to unintentional, expensive mistakes to ask one employee to manage HR duties and track changes in policies and legislation across multiple jurisdictions.

6. Keeping Top Talent

The best professionals in the field can be attracted to and kept on staff with the help of a top-notch benefits package. If you provide these appealing incentives through your PEO, you will be able to attract and retain your dream team.

7 Benefits of Using PEO Services

Your business will gain from using PEO services in numerous ways. Here are the top 7 advantages of working with a PEO organization.

1. Streamlined Payroll

A high-functioning firm must maintain efficient payroll procedures, yet this skill can be challenging to learn. It takes time and effort to carry out the procedure flawlessly, from dealing with withholdings to accurately tracking employee hours.

Your payroll will operate considerably more efficiently and cost-effectively with a PEO. PEOs can handle critical paperwork like your W-2s, handle your withholdings, and automate several steps in your payroll process.

2. Improved Employee Benefits

PEO systems frequently contain tens of thousands, if not hundreds of thousands, of employees. With insurance companies and other benefit providers, they now have more clout.

In the end, they’ll be able to get your little or medium-sized organization access to the same advantages that usually only large businesses can.

The majority of PEOs can provide a selection of these services:

1. Plans for healthcare

2. Workplace advantages

3. Mental health assistance

4. Commuter advantages

5. Insurance for both life and disability

This is especially important in light of the Covid-19 outbreak, as 4 out of 5 workers said they would choose additional benefits over a pay increase in a recent survey.

3. Lawsuits

Every company aspires to never have to deal with a lawsuit, yet they do occur occasionally. Working with a PEO will help to reduce harm. One lawsuit alone can ruin your company.

PEOs are jointly liable for a portion of certain employment-related claims. You can defuse a difficult situation with the assistance of the PEO‘s many experts.

4. Payroll Regulations

Federal and state employment regulations are always evolving. If you don’t adhere to them strictly, you could face severe fines. According to IRS data, fines for unpaid payroll taxes are assessed to more than 40% of small firms annually.

The smooth functioning of your business depends on your ability to remain compliant with taxes and rules, yet this procedure takes up a significant portion of your week.

5. Reduces time

Payroll compliance, benefits compliance, and out-of-state compliance are all areas where many PEOs offer assistance.

It’s likely that your HR team spends a lot of time focusing on routine duties like filing paperwork and staying up on evolving employer-related rules.

Your HR team will have more time to devote to assisting you in expanding your business if you use a PEO.

6. Saves Money

The ROI from hiring a PEO was over 27% in cost reductions alone, according to NAPEO research. When bargaining with insurance carriers, PEOs have an advantage because they effectively "hire" individuals from many different individual workers.

PEOs Can Protect Your Business

Given that 33% of American small businesses receive fines for payroll errors each year, risk protection is a typical reason why many small businesses prefer to engage with PEOs. A reputable employer organization uses their knowledge of compliance and assumption of legal responsibility to provide risk protection.

Client Segment In PEO

Utilizing The Best PEO Services

Using a PEO service can help your company develop by streamlining operations and increasing productivity. You may free up resources and use them to take advantage of greater chances by saving time and money through a variety of business processes. To help you realize your dreams of international business expansion, Bradford Jacobs provides global PEO services. Reach out to our consultants to discuss your choices for growth.


  • Who needs to employ a PEO?

PEO-using companies are found in a wide range of industries, including manufacturing, accounting, healthcare, non-profits, and varied craftsmen including plumbers, carpenters, and mechanics.

  • PEO stands for what?

The abbreviation PEO stands for professional employer organization. It is also known as a co-employment arrangement.

  • What are the advantages of a PEO?

A PEO works with you to protect and grow your company by freeing you of the responsibility of handling compliance, risk, and human resources on your own.

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