PEOs provide payroll, workers' compensation, employee benefits and HR

PEOs Are a Payroll Solution

According to the Small Business Administration, between 1980 and 2000, the number of labor laws and regulations grew by almost two thirds. That same study estimates that owners of small or mid-sized businesses spent up to a quarter of their time on employment-related paperwork. 

The skyrocketing use of Professional Employer Organizations (PEOs) have given employers a life raft they desperately need to compete and survive.

There are four core services that a PEO provides for a business: Payroll, workers' compensation, employee benefits and human resource services. In this installment of how a PEO can benefit small businesses, we will focus on the payroll outsourcing advantages. These include:

Avoiding IRS Penalties

According to the IRS, 40% of small businesses pay an average penalty of $845 per year for late or incorrect filings.


If paychecks are delayed or paperwork is mishandled, the employee leasing service is responsible to fix things.


Do you have the time and energy to closely supervise your business's payroll for time and rate abuses and other shady activities?

Garnishment Deductions

Printing extra checks for child support payments, IRS and other wage garnishments takes time and costs you money. An employee leasing provider will manage these tasks.

Direct Deposit

Small businesses recognize that employees want direct deposit. Not having to make a trip to the bank is an important convenience for them and reduces wasted productive time for you.

Free Up Free Time

Payroll processing is a time-consuming process. Outsourcing payroll can free up staff time to pursue more important value-added and revenue-generating activities.

Alleviate Pain

Payroll is a headache in the best case and a nightmare in the worst case. Business owners who outsource payroll through a PEO service eliminate a tiresome source of personal pain.

Avoid Technology Headaches

Keeping up with the latest version of payroll software programs and the most recent tax tables isn't easy and requires and regular investment. Using the wrong tax tables can result in stiff penalties. Outsourcing payroll with an employee leasing company removes those headaches and keeps payroll running smoothly.

Find the Best PEO for Your Business

As the nation's leading PEO brokerage since 2001, we make it easy to find the right PEO company for your business. We are committed to giving our clients the best pricing and service in the industry.

Our expertise has helped thousands of businesses nationwide, and we've saved our clients millions in insurance premiums. Our customer service is a top priority- and we offer the best guarantee in the industry. Call us today or fill out our quote request form to see how much you can gain with a PEO!

payroll professional employer organization peo
About the Author: Mike Burgelin

With two decades of experience in the PEO Employee Leasing industry, Mike Burgelin is an expert in helping business owners maximize their growth potential through the outsourcing of human resources and payroll tasks. He is also a fully licensed insurance agent, whose skills and knowledge in workers’ compensation insurance help his clients save over $40 million in premiums each year.