Straight Answers About PEOs

Many people have questions about Professional Employer Organizations (PEO) and here we will answer the questions that we get the most. Our hope is that if you’re exploring PEO this will help you and if you are in a PEO this will raise some talking points with your PEO provider.

After quoting thousands of companies and working with over 400 PEOs for almost 4 years – we offer unparalleled insight into the PEO market.

1- What administration fee should we pay?

It depends on the size of your group, whether or not a PEO is national, regional or niche. Administration fees should be transparent to you – if they are percentages they should be fixed and disclosed to you as what they are per employee per month.

2- Who is the best medical carrier? 

The best medical carrier is the one that pays your claim. All jokes aside you should look for a deep network that has your doctors and facilities in it. Most PEOs offer national medical coverage with Aetna, UHC, Oxford, BCBS, Cigna & so forth.

3- Which PEO is the best? 

There is no one size fits all PEO. PEOs can be national, regional or niche. What matters is their financial stability, their insurance carriers and that they are transparent in billing. If those things are in place and the solution they offer meets your needs then they are a good fit.

4- What is co-employment & can the PEO take over my company? 

Co-employment is legally how PEOs offer their services to you and your employees. For the purpose of offering medical benefits, workers’ compensation they must co- employ your employees. This means that your employees work for you, report to you, but for payroll and insurances they are employed by your company and the PEO. The PEOs aren’t interested in running your business – they are a vendor and clearly outline in their Client Service Agreement (CSA) what their responsibilities are and what yours are.

5- If we are in a PEO how do we know we are getting the best price? 

Most people think that they are getting the best price for what they have or buy – however, we all know that isn’t always the case. The best way to know if you have the best deal is to compare other PEO vendors. It’s vitally important that you comparatively shop the market with competent people well versed in PEO.

These are the most common questions we are asked – we are sure there are many more you may have. We offer the ability to evaluate what you’re currently doing to see if PEO is a fit for you or if you’re in a PEO to see if you could save more or do better.

If you would like to download our free Intro to PEO - let us know and we will be happy to send you a copy. 


Rodney Steele