What Is a PEO? I National Workman’s Comp Solutions

What is PEO?

Employee Leasing Program 

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All About PEO Insurance

What does PEO stand for? Professional Employer Organization (PEO).

PEO insurance offers business owners cost-effective outsource the management of human resources,
employee benefits, payroll,  and worker's compensation. 

PEO clients focus on their core competencies to maintain and grow their bottom line.

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Time

A PEO handles your admin paperwork so you can focus on growing your business instead of being stuck in the employee leasing duties.

HR

A PEO manages critical HR responsibilities and take over employer tasks while minimizing your admin duties. so you can stay focused on what matters.

Services

A PEO will maintain an employer relationship with your employees and Stay on top of new regulations.

Risk

A PEO will contractually assume certain employer responsibilities and risks so you don't have to. 

Did You Know?
According to the Stats on the NAPEO Website

850
Active

There are roughly 750 to 950 active PEO's currently in the United States  

168K
Serviced

PEOs provide services to between 156,000 and 180,000 small and large businesses

146B
Size

The current size of the PEO industry is between $136 and $156 billion, as measured in gross revenues.


Is a Professional Employee Organization (PEO) Right for your Business?

What a PEO can do for your Business 

Businesses today need help to manage increasingly complex employee related matters such as health benefits, worker's compensation claims, payroll, payroll tax compliance, and unemployment insurance tax claims. They contract with a PEO to assume these responsibilities and provide expertise in human resource management. This allows the PEO client to concentrate on the operational and revenue-producing side of its operations. 

Is a PEO for You? 

Companies of all sizes struggle with growth, in order to stay competitive, you are constantly forced to do more with less. There are many factors that go into consideration when determining whether an employee leasing (PEO) policy is beneficial for your business. Some of these include your companies claims history, services offered, number of employees, payroll, type of services and percentage of work sub contracted, previous coverage history and even geography of where you conduct business. The first step in determining if a PEO is the best option for your company is to understand the history and services a PEO can provide for you. 

A PEO is able to provide you with peace of mind.
Just one claim can devastate your business!

  • Focus on your Business
  • When you partner with a PEO to handle your HR responsibilities, you have time to focus on core business decisions. Would you rather be perfecting your product or immersed in paperwork for an unemployment claim? Spend time on what counts and what is going to help your business grow. 


  • Cost Reduction 
  • A PEO can provide savings on worker’s compensation premium, benefits, products and services that are usually reserved for large companies with purchasing power. In addition to reducing the hard costs of running your business, a PEO also can improve your potential revenue as well. A PEO can offer valuable training for your employees to develop their skills and maximize their productivity. 

  • Peace of Mind 
  • Think of the PEO-like your trusted business partner. You won’t be alone to figure out if your business is legally compliant or has enough protection for a worst-case scenario. You can also protect your business and reduce your exposure to lawsuits stemming from claims such as discrimination, wrongful termination, or sexual harassment. 

  FAQ 

  • Do PEO arrangements lock me into annual contracts?
  • Types of businesses suited
    to use  a PEO model

Typically, PEO arrangements have executed leasing agreements not contracts. This means that you are able to enter the arrangement under the " pay as you go " model and keep the policy active as long as you continue running payroll with the PEO. Generally speaking it is always better to maintain coverage on a consistent basis and avoid gaps in coverage, however most PEO agreements do not bind you into 12 month contracts or policies similar to a stand alone (SAP) Policy. If you lose your projects or are unable to retain the employees and have to cancel the policy, typically most PEO’s will allow you to reinstate with them as long as you cancel the agreement without any outstanding balances owed.