9 Reasons to Outsource Using a PEO Company

As a business owner, you are aware that there are not enough hours in the day, and most of your time is spent on managing invoicing, payroll, and HR administration, instead of building your business and generating revenue.

A professional employer organization (PEO) is an outsourced HR service that can help your business with all the HR-related duties and more. Many companies outsource parts of their HR to PEO services because they provide comprehensive HR and administrative services. A PEO service provides expertise and technology to help businesses grow and manage their day to day administration efficiently.

Outsourcing your HR duties out to a PEO company is the only way to get a business owner to get back to focusing on the business, products, and services. The PEO company eliminates liabilities of payroll taxes because the PEO company will become the employer on record through a co-employment agreement. Below are nine reasons to outsource using a PEO company.

1. Access to Better Benefits

A PEO company can access a larger pool of benefit options at lower prices, such as health and retirement benefits. PEOs offer better costs related to benefits by using collective bargaining powers to negotiate lower rates.

2. General Relief from HR Tasks

A variety of HR duties can be outsourced to free up time and energy, such as payroll administration, government compliance, employee benefits, and employer liability management.

3. High-quality Workers Compensation

A PEO company will handle worker’s compensation claims, such as communication and assistance with return-to-work programs. A PEO company will also provide other safety and risk management services to your business, including worker’s compensation insurance, claims management, on-site safety reviews and training, safety materials, state and federal compliance posters, premium payment and reconciliation, and certificates of insurance.

4. Payroll Compliance

A PEO company takes the stress of payroll responsibilities off your place, including processing payroll and issuing paycheck. A PEO company assumes the risk and responsibility of keeping records of wage and hour compliance, regulatory reporting, and other payroll management. Payroll administration services can include tax filing deposits and direct deposit, paid time off, payroll tax withholdings, and benefit plan contributions.

5. Reduce Regulatory and Legal Administration

A PEO company, helps your business reduce risks and costs that can be associated with things like payroll procession, maintaining wage records, tax reporting and deposits, paycheck and paystub preparation and delivery, and wage garnishments.

6. Assistance with Employment Laws and Regulations

A PEO company will assist with the federal and state employment laws and regulations, such as payroll, unemployment claims, compliance with federal, state, and local laws, and health care compliance.

7. Single Point of Contact

Usually, a PEO company will have a single point of contact assigned to your business to simplify communications. You have direct access to one point person for any questions or concerns.

8. Reduced Liability

PEO companies are under pressure to keep businesses in the green and assist with HR-related responsibilities, including employee hiring, employee handbooks, employee benefits, workers compensation, government liaison, and legal compliance assistance.

9. Access to HR Specialists

A PEO company employes HR specialists to provide advice and guidance when it is needed in every aspect of a business, such as risk and compliance, employee relations, and liability training.  A PEO company will handle HR-related tasks so you, as an employer, can focus on scalability and profitability.


Outsourcing a PEO company can help improve the productivity of your workplace overall because your business will have experts and specialists looking after the HR-related administration needs. Find the best PEO companies to outsource at Retireat21.com.


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