Checklist for Partnering With a PEO

A Professional Employer Organization provides small and medium-sized businesses access to services and tools which help them grow. It allows employers to outsource human resource services by leasing employees and thereby sharing and managing employee-related responsibilities. Many growing business owners choose to outsource administrative functions to PEO as it can relieve the burden.

When you are entering into a joint-employment relationship with a PEO, your business is being completely exposed to an outsider. Therefore, before you outsource to a service provider, there are certain things that you need to check on. This article covers the questions that you should check before signing into a co-employment relationship with a PEO. 

What Are All Your Business Needs?

Before approaching a PEO, you should estimate the needs of your company. All the aspects of your company like administration, payroll, human resources, risk management, and compliance should be assessed a. You should determine what your business needs and what does not.

What Is the Credibility of the PEO?

As you are going to enter into a joint employment relationship with the PEO transparency is important. Ensure you have made enough research about the service provider and check whether the PEO is certified or not. You can ask for a reference check and get feedback from their clients. 

What Are All the Services Offered?

PEOs offer a wide range of services. When you hire a PEO, choose services including HR consulting which can provide you with a team of specialists for guidance. Review the service agreement and ensure that the company you are considering meets all your requirements. Select a PEO with a wide variety of services that you can utilize as a part of growing your business. 

What Is the Pricing of the PEO?

There are two types of pricing PEOs use. Charging businesses on a per-employee and Charging businesses based on a percentage of their total monthly payroll. Although many PEOs only offer one type of pricing, some let you choose an option that is suitable for your business. Understand which pricing structure works best for your business.

What Are All the Technologies Offered?

One of the many advantages of partnering with a PEO is gaining access to advanced technologies. Understand the technology which you offer and ensure it meets your requirements. 

What Are All the Employee Benefit Plans?

Understand the employee benefits offered by the service provider you are approaching. Inquire about relevant benefits to your industry to determine whether the PEO can provide your employees with what they need most.

Do You Offer Compliance and Payroll Tax Services?

Discuss the details about payroll taxes, compliance, and risks with the PEO before moving forward with a partnership

Ensure that the PEO you choose understands your vision for your company, and the plan of action presented by the PEO will help you achieve your goals.


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How Do PEOs Help Your Business Expansion?

A PEO adapts into a co-employment partnership with an employer by leasing personnel to the company. The administration of employee benefits, workers’ compensation, payroll, and employment taxes are just a few of the human resource tasks that the PEO can help an organization with. 

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