1. What is a PEO and how does it work?

A Professional Employer Organization (PEO) partners with small and mid-sized businesses to handle payroll, HR, benefits, and compliance. You maintain control of your employees, while the PEO takes on the administrative burden and shares liability for compliance.

2. How can a PEO save my business money?

PEOs reduce costs by streamlining payroll, minimizing compliance mistakes, lowering workers’ comp rates, and giving small businesses access to large-company benefits at better prices. On average, businesses save up to 27% on HR-related costs (source: NAPEO).

3. Is my business too small for a PEO?

Not at all. Many PEO clients have 10–50 employees, but even companies with as few as 5 employees can benefit — especially if you want access to better health insurance and retirement plans.

4. What industries benefit most from a PEO?

PEOs are especially valuable for:

• Construction & trades (workers’ comp + compliance headaches)

• Manufacturing & logistics (safety + HR support)

• Startups & biotech (scalable HR + recruiting help)

• Professional services (legal, financial, marketing firms)

5. How does a PEO improve compliance?

PEOs stay on top of changing labor laws, OSHA requirements, tax filings, and ACA compliance. This reduces your risk of audits, fines, and surprise tax bills at year-end.

6. Do I lose control of my employees with a PEO?

No. You still manage day-to-day operations, hiring, and firing. The PEO simply becomes the “employer of record” for tax and benefit purposes, while you remain the boss.

7. How does a PEO help with employee retention?

By offering big-company benefits (healthcare, 401k, dental, vision), you can compete for top talent. Studies show employee turnover is 12–14% lower for businesses that use a PEO.

8. What’s the ROI of using a PEO?

Businesses using PEOs grow 2x faster, are 50% less likely to fail, and report 16% higher profitability compared to those that don’t (source: NAPEO).

9. What’s the difference between a PEO and a payroll company?

Payroll companies just process paychecks and tax filings. PEOs go much further — they provide benefits, HR, risk management, workers’ comp, and compliance support all under one partnership.

10. How do I know if a PEO is right for me?

If you’re spending more time on payroll, compliance, and admin work than growing your business, are having difficulty finding realistic workers comp — or if you’re worried about risk exposure — a PEO is worth exploring.