PEOs "pool" various types of insurance with some of the top insurance companies in the United States, adding client companies like yours to these shared participation plans. This creates a collective group with economies of scale, allowing them to secure lower insurance premium rates than you could as an individual business.

As your business grows, PEOs support you with time management, direct deposits, company accounts, and payroll tax deductions. They are essential in ensuring compliance and keeping you informed about the latest strategies and employment laws, protecting you from wasted time, potential fines, and penalties.

There are numerous reasons why a business owner can benefit from partnering with a PEO brokerage, such as cost reduction, streamlined operations, international hiring, legal compliance, and even handling employee termination while reducing risk and liability. PEOs also help mitigate benefits costs, including health insurance, relieving the business of some expenses. For the right company, a PEO can serve as an excellent administrative assistant.

However, there are some important considerations to keep in mind, such as the commitment involved—co-employment is harder to dissolve than a typical vendor relationship. Additionally, renewals may face higher rate increases compared to the fully insured health insurance market.