By reporting one of the largest expenses to all three major business credit bureaus, a business enhances its access to capital. This reporting demonstrates the company’s payment reliability as reflected across the business credit bureaus.

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Hiring a Professional Employer Organization (PEO) can be a valuable decision for many businesses, especially when the complexities of HR, payroll, and compliance begin to take too much time or require specialized knowledge. Here are some key indicators that hiring a PEO might be right for your business:

1. Time and Resource Constraints in HR Management

If handling HR tasks is detracting from your ability to focus on core business functions, a PEO can take on responsibilities like payroll, employee benefits, and compliance. This allows you to focus more on growing your business instead of administrative tasks.

2. Compliance Challenges

PEOs stay updated on federal, state, and local regulations. Staying compliant with the myriad labor laws, payroll tax regulations and OSHA requirements (among others) is challenging to even the most tenured HR professional.  Non-compliance is costly – sometimes even a business killer. You did not get into business to do HR, PEOs did.

3. Improving Employee Benefits

Small and mid-sized companies often struggle to provide competitive benefits. PEOs can offer access to high-quality, cost-effective benefits, such as health insurance, retirement plans, and wellness programs, by leveraging their larger employee pools.

4. Need for Risk Management and Workers’ Compensation Support

If your business faces risks that require specialized handling, PEOs provide workers’ compensation coverage and may offer safety training and risk management expertise.

5. Scalability and Business Growth

A PEO helps you scale quickly by handling recruiting, onboarding, and payroll as you add employees. This can be particularly valuable if you’re in a high-growth phase or expanding into new regions with different regulatory requirements.

6. Cost-Effectiveness

While there is a cost associated with hiring a PEO, the streamlined processes, reduced HR staffing needs, and potential savings on benefits offset this.

7. Access to HR Expertise

PEOs provide access to experienced HR professionals who can advise on policies, employee relations, and legal issues. If your company lacks this in-house expertise, a PEO can be a valuable partner.

Proactive employment statute compliance - handbooks updated regularly; "as they happen" updates on federal, state and local employment-related statutes; 1:1 situational consulting

Time efficiencies - repurpose cost centers related to HR "administrivia" to revenue centers by offloading large portions of required reporting etc

Cost savings - 66% of ALL PEO clients realize a hard dollar cost savings or a "wash" as it relates to their current HR related overhead

Fully automated admin process - "Robust technology when you want it, people when you don't"; automated supervisor and employee on/off-boarding and HR administration

Pay/Go Workers' Compensation - workers' compensation charged real-time based on actual payroll; no recurring up-front deposit creates a cash flow benefit

No Workers' Compensation audit - no end of policy audit; no "true-ups" requiring additional expense or fighting with carriers for a credit

Payroll tax administration - PEO remits all payroll taxes to the appropriate authority and files all payroll tax documents 

Fee Inclusive 401(k) - (not all PEOs have this as a fee inclusive component) no charge to the employer; market-based participant fee of .34%. Some PEOs do not charge the employer for their 401k. Most have market appropriate participant fees.

PEO becomes the fiduciary for the 401(k) - eliminates class action risk 

Heavily discounted benefits - brand name providers, premiums SIGNIFICANT lower than market due to the PEO's buying power

Below market service fee - Our providers’ service fees are, on average, $400 less per employee per year than the market average – as much as $2,000 per employee per year in some cases.

TJ offering - Through our exclusive relationship with TJ Corporate Credit we align you with the only PEOs that report HR costs to the credit bureaus.  That is payroll PLUS payroll taxes, workers’ compensation/benefits (if included), AND their service fee.  Most clients report adding an additional 15-20% to the largest component of their overhead – payroll.  The reporting process normally takes 60-85 days to initiate.