PEO Brokerage

A PEO brokerage or broker is an individual or firm which represents and manages many different PEO brokerage relationships and brokers their PEO services for several different businesses or companies.  In short, PEO brokers help their clients determine if their company is a good fit for a PEO and then match them with the PEO that will provide the needed menu of professional services for the best quality of service and most competitive cost.
If you are unsure whether or not working with a PEO brokerage is the best choice for you and your business, we understand, and that is why we are here to help. We encourage you to consider the time you could save by working with a PEO broker and utilizing a PEO for the benefit of you and your employees.

Why would my business need a PEO?

PEOs “pool” various types of insurance with some of the top insurance companies in the United States, and the PEO will add client companies, like yours, to these shared participation plans. This creates a common interest group with economies of scale, that qualifies them to receive lower insurance premium rates than you could as an individual business on your own.

As your business continues to grow, PEOs will assist you with time management, direct deposits, company accounts, and payroll tax deductions. A PEO is essential in ensuring you remain compliant and “in-the-know” about recent and ongoing strategies and employment laws, PEOs serve as protection against wasted time, potential fines, and penalties.

There are many reasons a business owner can benefit from partnering with a PEO brokerage, namely: reducing costs, streamlining operations, hiring internationally, legal compliance and even employee termination all while reducing risk liability. Additionally, PEOs help by mitigating benefits costs and health insurance to relieve the business of some expenses. A PEO can be a great administrative assistant for the right company. There are some important considerations to keep in mind such as commitment because co-employment is harder to break than a typical vendor. Another one is renewals can be subject to higher rate increases than the fully insured health insurance market.

How Does a PEO work?

A PEO places a company’s employees on the PEO’s payroll. In this capacity, the PEO is the “employer of record” for the employees. These employees will still work for the business, they receive duties, tasks, responsibilities and assignments from the business, but the PEO administers benefits, paychecks, human resources, and compliance to help streamline your payroll, benefits, and compliance

The major benefit of a PEO is that you get to run your business while the PEO handles major time-consuming administrative tasks.

PEOs are also experts in deciphering which legal requirements apply to your business, and determining which paperwork is required to ensure your business complies with the law. As your business grows, PEOs can assist you so you can focus on your business and doing what you love.

Should we keep our current employee benefits program or go PEO?

There are many PEO companies you may consider and that is why we are here to guide you every step of the way. We will help you to review this question and help you to determine which PEO brokerage is the right fit for you and your company.

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