PEO Explained
What is a PEO?
A Professional Employer Organization (PEO) is an all-in-one HR solution that handles payroll, benefits, compliance, and risk management — so you can focus on running your business.
How It Works
The Co-Employment Model
You Run Your Business
You keep full control over hiring, managing, and directing your employees day-to-day. Nothing changes about how you operate.
PEO Handles the Admin
The PEO becomes the employer of record for tax and benefits purposes — processing payroll, filing taxes, managing benefits enrollment, and ensuring compliance.
Everyone Wins
You save time and money, your employees get better benefits, and your business is protected from compliance risk.
According to the National Association of Professional Employer Organizations (NAPEO), businesses that use a PEO grow 7–9% faster, have 10–14% lower employee turnover, and are 50% less likely to go out of business.
Why Partner With a PEO
The Benefits of a PEO
Save 5–30% on Costs
PEOs leverage economies of scale to negotiate better rates on health insurance, workers' comp, and 401k plans — savings that small businesses can't access on their own.
Fortune 500-Level Benefits
Offer your employees the same caliber of health, dental, vision, and retirement benefits as large corporations — a powerful tool for attracting and retaining top talent.
Reduced Compliance Risk
Stay ahead of ever-changing federal, state, and local employment laws. Your PEO shares employer liability and keeps you protected from costly penalties.
Save Time on Admin
Eliminate hours spent on payroll processing, tax filings, onboarding paperwork, and HR administration — freeing you to focus on growing your business.
Expert HR Support
Gain access to a team of HR professionals who can help with employee relations, performance management, hiring, and terminations.
All-in-One Platform
Manage payroll, benefits, time tracking, onboarding, and compliance from a single integrated technology platform — no more juggling multiple vendors.
Full-Service Coverage
What Does a PEO Handle?
- Payroll processing & direct deposit
- Federal, state & local tax filings
- Health, dental & vision insurance
- 401(k) & retirement plans
- Workers' compensation insurance
- Employee onboarding & offboarding
- HR compliance & employment law
- Employee handbook & policies
- Risk management & workplace safety
- Time & attendance tracking
- Employee self-service portal
- Unemployment claims management
Why Use a PEO Broker?
There are hundreds of PEOs in the market — and they're not all created equal. Pricing, technology, service quality, and industry expertise vary widely.
As your broker, The Outsource Pros represents 20+ top PEOs and makes them compete for your business. We match you with the right partner for your industry, size, and budget — at no cost to you.
- Access to 20+ vetted PEO partners
- Competitive pricing through our relationships
- Unbiased recommendations
- 100% free brokerage service
FAQ
Common Questions About PEOs
How does a PEO work?
A PEO enters into a co-employment arrangement with your business. The PEO becomes the employer of record for tax and benefits purposes, while you retain full control over day-to-day operations, hiring, and management of your employees.
How much does a PEO cost?
PEO fees typically range from $80–$200 per employee per month, or 2–12% of total payroll. However, the savings on benefits, workers' comp, and HR administration usually far exceed the cost — most businesses save money overall.
Will I lose control of my employees?
No. You retain full control over who you hire, how you manage your team, and all day-to-day business decisions. The PEO simply handles the administrative and compliance burden behind the scenes.
What size businesses benefit most from a PEO?
PEOs are ideal for businesses with 5–500 employees. Smaller businesses gain access to enterprise-level benefits and HR expertise they couldn't otherwise afford. Larger businesses benefit from streamlined administration and compliance support.
Why use a PEO broker instead of going directly to a PEO?
A broker like The Outsource Pros represents 20+ PEOs and makes them compete for your business. This ensures you get the best fit for your specific needs at the best possible price — at no cost to you.
Ready to Find Your PEO?
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