What Is a PEO and How It Can Help Your Business

Managing payroll, benefits, HR compliance, and employee relations can be overwhelming – especially for small businesses without a dedicated HR department. That’s where a PEO (Professional Employer Organization) can make a big difference.

If you’re looking for ways to simplify HR, protect your business from compliance risks, and offer better employee benefits, partnering with a PEO might be the right solution. Let’s break it down.

What Is a PEO?

A Professional Employer Organization is a company that partners with your business to handle employee-related responsibilities. Through a legal arrangement called co-employment, the PEO becomes the "employer of record" for tax and benefits purposes, while you continue to manage day-to-day employee activities and business operations.

In short: You still lead and run your business. The PEO handles the administrative heavy lifting.

What Services Does a PEO Provide?

• Payroll Processing – Managing wages, tax withholdings, filings, and direct deposits.

• Employee Benefits – Access to better health insurance, retirement plans, dental, vision, and other perks.

• HR Support – Assistance with hiring, onboarding, policies, employee handbooks, and termination procedures.

• Workers’ Compensation Insurance – Coverage and claim management assistance.

• Compliance Management – Help navigating employment laws, ACA compliance, wage and hour rules, and more.

Some PEOs also offer HR technology platforms to streamline operations and provide reporting tools.

How Can a PEO Help Your Business?

• Save Time – Focus more on growing your business instead of getting bogged down in HR paperwork.

• Access Better Benefits – Small businesses can offer Fortune 500-level benefits at more affordable group rates.

• Reduce Risk – PEOs stay up to date with constantly changing employment laws to help protect your business from compliance mistakes and penalties.

• Improve Employee Satisfaction – Offering competitive benefits and structured HR support can help attract and retain top talent.

• Support Business Growth – As your company scales, a PEO can support expanded HR needs without requiring you to hire a full HR department immediately.

Is Partnering with a PEO Right for Your Business?

Consider a PEO if:

• You have growing HR needs but no full-time HR staff.

• You want to offer better benefits but can’t afford large-group pricing.

• You’re concerned about compliance risks as your team expands.

• You need to save time and focus on your core business operations.

PEOs usually charge a fee per employee or a percentage of total payroll, so it's important to weigh the costs against the benefits gained.

How We Can Help

Whether you decide to partner with a PEO or manage HR in-house, accurate bookkeeping remains essential. We help businesses:
✔ Ensure payroll entries are correctly recorded in QuickBooks Online
✔ Manage expenses related to employee benefits and insurance premiums
✔ Reconcile payroll reports, tax filings, and financial statements accurately

Need help keeping your books clean and your finances clear while you grow your team? Contact us today!