What owners ask about PEOs, answered.
Chris Peterson's articles on what a PEO does, what it costs, workers' comp, benefits and how to switch or leave. First published on peoconsultants.com between 2016 and 2020, checked and updated in October 2026.
PEO basics
What a PEO is, what co-employment means, and what a PEO takes off an owner's plate.
- What Is a PEO? How Co-Employment WorksA PEO (professional employer organization) co-employs your staff and handles payroll, benefits, workers' comp and HR compliance help while you keep running the business.Chris Peterson
- Why Use a PEO? What It Takes Off a Small Business's PlateWhy small businesses use a PEO: pooled benefits, payroll, workers' comp, HR administration, compliance help and recruiting support, plus a checklist for vetting one.Chris Peterson
- What Services Does a PEO Offer?The HR services a PEO typically offers, grouped by area: payroll and tax, benefits, workers' comp and safety, compliance, hiring, performance, separation and records.Chris Peterson
- ASO vs. PEO: What's the Difference?An ASO handles HR and payroll tasks without co-employment; a PEO co-employs your staff and pools benefits and workers' comp. Here's how they differ and which fits.Chris Peterson · September 9, 2019
- 5 Myths About PEOsFive common myths about PEOs, from losing control of your employees to being locked in for good, and what's actually true about each.Chris Peterson · February 18, 2016
- The Advantages of Co-Employment PartnershipsHow co-employment with a PEO helps small businesses compete with larger employers: better HR practices, broader benefits, and payroll and claims handled for you.Chris Peterson · July 24, 2017
- Why Should Your Company Partner With a PEO?Two big reasons companies partner with a PEO: access to a large group's master health plans, and time back for customers while the PEO takes on employer paperwork.Chris Peterson
- Unexpected Benefits of Partnering with a PEOBeyond cost, a PEO can make compliance easier, help you land and keep strong hires, and free your HR people for strategic work.Chris Peterson · March 18, 2016
- 4 PEO Advantages That Can Save Your Business Serious TimeFour ways a PEO saves an owner time: it runs payroll, chooses and manages benefits vendors, handles workers' comp claims, and helps keep you compliant.Chris Peterson · September 2, 2019
- Why PEOs Are on the Rise: A Healthy OutlookPEO use keeps growing. NAPEO's latest figures on the industry, and why so many small and mid-sized businesses hand their HR to a PEO.Chris Peterson · March 10, 2020
- Stats & Facts on Why Outsourcing HR to a PEO Benefits Your Bottom LineThe numbers behind outsourcing HR to a PEO, updated with NAPEO's 2019, 2024 and 2026 studies and labeled as industry-sponsored.Chris Peterson · November 8, 2017
Costs and pricing
How PEOs charge, where the money goes, and what really drives the invoice.
- Putting PEO Pricing Models Under the Microscope: What You Need to KnowHow PEOs price their services: per employee per month vs percent of payroll, bundled vs unbundled, published ranges, and what drives your cost.Chris Peterson · April 16, 2020
- The Top 5 Ways a PEO Reduces Your ExpensesFive places a PEO can lower a business's costs: health premiums, workers' comp, state unemployment tax, turnover and the soft costs of HR paperwork.Chris Peterson · April 22, 2016
- How Small Businesses Work with PEOs to Reduce Their Business CostsFour ways small businesses lower costs with a PEO: health insurance, retirement plans, HR compliance and workers' comp, and what decides how much you save.Chris Peterson · February 26, 2020
- Stop the Madness: Contain Health Insurance PremiumsHealth premiums keep rising. How a PEO's pooled master health plans can help a small business contain costs, and what decides your rate.Chris Peterson · January 11, 2018
Workers' comp and safety
Premiums, mod rates, claims and OSHA, and how a PEO handles each.
- 3 Ways PEOs Save on Workers' CompHow a PEO can lower workers' comp costs: pooled group pricing, pay-as-you-go billing that eases cash flow, and claims handled under the PEO's program.Chris Peterson · January 18, 2016
- Demystifying Workers' Compensation Insurance Premiums and How a PEO Can Lower Your RatesHow workers' comp premiums are calculated (class code rate x payroll per $100 x experience mod) and the ways a PEO can lower your rate.Chris Peterson · March 14, 2018
- Workers' Compensation: How a PEO HelpsHow a PEO manages workers' comp costs and claims: deposits, pay-as-you-go billing, audits, mod checks, injury reporting and return-to-work programs.Chris Peterson · December 11, 2017
- MOD Ratings and Government Contracts: How PEOs Help Smaller Companies CompeteWhy a workers' comp experience mod can decide eligibility for government bids, why small companies are hit harder by one claim, and how a PEO can help.Chris Peterson · February 6, 2018
- 4 Ways to Make OSHA Compliance EasyFour ways a PEO helps with OSHA compliance: safety manuals, safety training, the OSHA 300 injury log, and safety audits and mock inspections.Chris Peterson · January 13, 2018
HR and compliance
Employment law, HR mistakes, risk, and how a PEO works alongside your own HR people.
- 14 HR Challenges a PEO Can Take Off Your HandsEmployee Benefit News listed 15 HR challenges for 2019. A PEO can help with 14 of them, by saving money, saving time and lowering risk.Chris Peterson · March 14, 2018
- Easy Button Your HR Functions with a PEOA PEO replaces the pile of HR vendors (payroll, insurance, benefits, safety, compliance) with one partner that manages them for you.Chris Peterson · October 19, 2017
- HR Compliance: As Clear as Alphabet SoupADA, FMLA, FLSA, ERISA, OSHA: the employment laws a PEO helps small businesses track, with the full list in plain English.Chris Peterson · July 24, 2017
- HR and PEOs: Partners, Not RivalsA PEO doesn't replace your HR people. It takes the transactional work off their desks so they can focus on talent, culture and strategy.Chris Peterson · January 13, 2018
- PEO to the Rescue: Common HR Mistakes Managers MakeThree costly HR mistakes managers make (compliance, payroll and tax, recordkeeping) and how a PEO helps small businesses avoid them.Chris Peterson · March 14, 2018
- Risky Business: How a PEO Reduces Your ExposureHow co-employment with a PEO shares employer risk: what the PEO takes on, what stays with your business, and the limits worth knowing.Chris Peterson · October 19, 2017
- The Benefits of Hiring a PEO During Covid-19How PEOs helped small businesses through Covid-19 in 2020: remote work, furloughs and layoffs, COBRA and unemployment, and PPP loan applications.Chris Peterson · December 1, 2020
- The Shift of HR Roles and PEO Services During a Global PandemicWhat a PEO partner did for HR in spring 2020: remote work, deciding which roles were critical, handling layoffs properly, and planning the recovery.Chris Peterson · April 7, 2020
Choosing, switching or leaving
When a PEO makes sense, how to judge the one you have, and how to leave cleanly.
- 6 Guidelines to Help Business Owners Choose a PEOSix things to check when choosing a PEO: fit, full service, labor law expertise, online access, credentials (CPEO, ESAC, state certification) and references.Chris Peterson · November 8, 2017
- How to Know When It's Time for a PEOFour signs it may be time for a PEO (compliance, payroll, benefits, workers' comp), plus the cases where a PEO usually isn't the right fit.Chris Peterson · March 3, 2020
- Is Your PEO Taking Good Care of You?What to expect from a good PEO, the warning signs that yours isn't measuring up, and how to decide whether to renegotiate, switch or stay.Chris Peterson · July 24, 2017
- Leaving a PEO Checklist: Be Prepared to Part WaysA checklist for leaving a PEO: notice and timing, employee data to collect, taxes and W-2s, payroll, benefits, retirement plans and employee leaves.Chris Peterson · September 9, 2019
Working with a PEO broker
What an independent broker does, how brokers are paid, and what to expect.
- Defining a PEO Broker: Who They Are & Why You Need OneWhat a PEO broker is, how brokers are paid, why owners use one to compare PEOs, and what to expect from a good one.Chris Peterson · April 14, 2020
- How Hiring a PEO Broker Can Be Good for You, Your Employees, & Your Bottom LineWhat a PEO broker does, why owners use one, and how getting the right PEO the first time helps with benefits, time and growth.Chris Peterson · March 24, 2020
- Why Should You Use a PEO Consultant?Why use a PEO consultant: one secure intake, quotes from several PEOs shopped for you, every quote broken down to its full cost, and no bill to you.Chris Peterson