Professional Employer Organization (PEO) Services

Each business has its own specific needs, so the Paychex HR PEO team includes professionals who can help with everything from HR administration tasks to payroll, benefits, workers’ compensation, and more.

• Relationship Manager – Your strategic partner helps optimize Paychex HR PEO to meet your specific business needs.
• HR Professional – Provides guidance for your strategic HR needs, helps address your business goals and create a supporting strategy. Your HR professional can also consult with you on employee relations and performance management, and will be your contact for the annual benefits enrollment process.
• Payroll Specialist – Supports payroll-related activities, including payroll processing, garnishments, time and attendance, and production of W-2s.
• Employee Benefits Specialists – Provide support and ongoing consultation on benefits packages, contribution strategy, and ancillary benefits – over the phone and through email.

As part of our client service agreement, a PEO company supports tasks in HR, payroll, benefits, and risk management. Additional services are available on an a la carte basis, and we can help you make selections that meet your specific business needs.

The client remains the employer, maintains control of the business, and oversees all business decision-making, including employee supervision and staffing decisions. The PEO helps to support administrative tasks associated with human resources services, payroll, employee benefits administration, and risk management.

While an employee leasing company provides a business with temporary workers who may perform work for a specified time, a PEO helps you handle HR administration tasks for your own workforce that you hire and manage. Throughout the entire PEO relationship, your workforce remains under your control.

Generally speaking, you and your PEO will sign a service agreement to establish responsibilities. The PEO can provide access to Fortune 500-level benefits and workers’ compensation coverage. When working with a PEO, you maintain control of your business operations and decision-making, including employee supervision and staffing decisions. The PEO assists with certain HR administrative tasks, administering benefits, processing payroll and payroll tax reporting, providing compliance support, helping you to maintain compliance, and improving workplace safety. This helps to ease the burden of traditional HR responsibilities, so you can focus on running your business.

PEO service providers can help businesses save time and money on HR related tasks, payroll processing, and employee benefits. Paychex can also provide proactive HR advice from an HR professional on a business’s specific HR issues. With its comprehensive services, PEO software makes it easier to complete many common business tasks with technology and support from a single solution.

Working with a professional employer organization can bring value to your business in the areas of human resources administration, employee benefits, payroll processing, and risk management. Our comprehensive PEO focuses on these core administrative areas for you, allowing your business to benefit and become better positioned to:

• Attract and retain talent — We can help you to offer programs and benefits that help you to recruit and retain the very best employees in today’s marketplace.
• Focus on your core business — We can provide support for many of your HR and payroll administrative tasks.
• Deliver world-class benefits — We can help you design a benefits package that will enable you to compete with Fortune 500 companies for the best employees.
• Reduce risk — We help keep you informed of complex employment laws and offer risk management strategies.
• Access leading technology — Our best-in-class technology helps make it easy to manage human resources, payroll, and benefits.

A PEO has the buying power to help businesses offer benefits more affordably by combining the employees of multiple businesses into a single group. It can also help improve cash flow by offering the ability to calculate workers’ compensation premiums based on actual wages, not estimates. Their technology also helps businesses improve the cost-efficiency of their HR processes.

The cost of a PEO may depend on many factors, such as employee benefits offered, insurance, workers’ compensation, state unemployment insurance (SUI), number of employees, and administration fees.
That is why it’s important to request pricing and discuss needs and options on a business-by-business basis. When a proper cost estimate is calculated, it is then easier to determine the potential cost savings a PEO could provide and how it may justify the PEO cost by paying for itself over time.

Businesses may receive a significant ROI from working with a PEO by saving over time on HR, payroll, and benefits management costs. Research from the National Association of Professional Employer Organizations (NAPEO) has found that using a PEO reduces employee turnover by 20%; saves 27% on HR-related costs — up to $1,775 per employee, per year; and significantly reduces the cost of health benefits compared to businesses that do not use a PEO.¹