Are you a dynamic company that needs human resource expertise and services? Do you already have people with no HR background handling your HR tasks inaccurately?

Have you heard about a PEO employer company, but you aren’t sure how they can benefit your company? If you are a small to mid-sized business and you’ve never heard about PEOs and their many benefits, you came to the right place. This brief PEO employer guide will cover how PEOs can make your company more attractive to employees and how you can grow your bottom line. 

What Is a PEO?

A PEO, also known as a professional employer organization, is a company that provides HR expertise and services to employers who may lack the ability to do it on their own. A PEO company provides administrative tasks such as benefits administration and payroll on behalf of a specific company. 

Standard PEO services provided:

  • Health benefits
  • Unemployment insurance claims
  • Workers’ compensation claims
  • Human resources policies and practices
  • Tax compliance and payroll processing

It is important to note that not all PEO companies provide the same services, and some specialize in other services than others. For example, some PEO companies offer risk management, international partnerships, and employee training and development. Before settling on, make sure you research different providers and compare their capabilities. 

Who Needs a PEO Company?

If your nonprofit or business has employees who handle HR tasks without any human resource background or expertise, you should consider hiring a PEO. Your business can benefit from working with a professional employer company because they will ensure you stay in compliance. 

Small and Midsize Businesses

If you are a small or mid-sized business that wants to be more competitive, you could benefit from a PEO. When you work with a PEO, they can help you improve your benefits offerings.

PEOs can help with including 401(k) and healthcare options which provides you with a more competitive edge to attract and retain the best Talent. Partnering with a reputable PEO company gives your business access to insurance, retirement, and other benefits. This will help you level the playing field with larger organizations. 

Industries Best for PEOs

Smaller businesses benefit more from co-employment services from PEOs, but some large companies can also reap the same benefits. PEOS are excellent fits for most industries, including real estate and property management, health services, and legal services. 

Other industries that benefit from PEOS:

  • Manufacturing 
  • Engineering services
  • Insurance 
  • Wholesale
  • Securities brokers and dealers
  • Computer services and technology

This list does not include all industries that can reap the benefits of a PEO. Before you partner with a PEO, be sure to research who they’ve previously worked with to ensure they can meet your business needs. 

Why Should I Use a PEO?

With the strategic guidance of a professional employer company, you can protect the interests of your business as you grow. As mentioned earlier, they can help process payroll and, in some cases, pay federal, state, and local taxes. They also can integrate time and attendance with your payroll services to ensure there are no errors or duplicate entries. 


The last thing you want to happen is for your business to get hit with a massive lawsuit due to non-compliance. PEOs have compliance experts who can protect your business from penalties or fines. Most professional employer companies have expertise in unemployment insurance, workers’ compensation, and payroll tax law. 

Risk and Safety

In addition to handling workers’ compensation insurance, PEOs can offer training programs and safety audits. These safety measures can help you limit claims which will also help your business’s bottom line. If needed, these companies can also assist with OSHA inspections. 

How Do PEOs Work?

When you create a partnership with a PEO company, your business and the PEO both share specific employer responsibilities. For example, the PEO can process your payroll, pay and withhold payroll taxes, and provide human resource guidance. This will allow you to focus more on your business operations, like providing services and products to your clients. 

How Much Do PEO Employer Services Cost?

It is important to note that not all PEO employer services charge the same. Some will charge you based on the number of employees you have, while others will charge you based on a percentage of your payroll. Before any company can provide you with a cost estimate, they will need information about your workforce and your desired and existing benefits. 

PEO vs. Human Resource Outsourcing

At this point, you probably are thinking, “is this PEO just like HR outsourcing?” and the answer is no. In this co-employment relationship, both you and the professional employer company share specific employer responsibilities that you cannot do with HR outsourcing.

For example, PEOs can provide you with access to top-tier health insurance and other employee benefits, but HR outsourcing companies cannot. Instead, the HR outsourcing company will only be able to help you administer the benefits you already have. 

Attract and Keep the Right Talent

A reputable PEO company not only will add benefit to your company, but it can also protect you from any human resource legal issues. If you need a company to help relieve your business of the burden of benefits administration, payroll management, and other human resource tasks, you may want to reach out to a PEO company for more help.

Instead of focusing on things for your business, you can spend more time focusing on things that increase your business sales and relationships. Contact us now if you are ready to learn more about how a PEO company like Bradford Jacobs can help you grow your business and attract the right talent.