PEO Services

A professional employer organization handles back-office administration for small and mid-sized businesses that lack the time, resources, or expertise to manage HR on their own. HR solutions that many PEOs provide include:

• HR management
• Payroll administration, including payroll-related taxes
• Benefits procurement and administration
• Employment-related compliance guidance
• Risk management and safety services, including workers’ compensation and claims assistance
• HR technology
• Recruiting services
• Performance management
• Employee training and development

When you partner with a PEO, your company continues to make all business decisions, manage operations, supervise employees, handle reviews and job assignments, determine salaries and hourly wage rates, choose which employee benefits to offer, and make all personnel decisions.

When you engage a PEO, you enter into a co-employment relationship. This arrangement allows your PEO to handle administrative tasks such as HR management, payroll processing, and benefits administration on your behalf. That includes withholding and remitting payroll taxes, handling workers’ compensation claims, and more.

A common myth is that business owners lose control when they engage a PEO. That is incorrect. You are still responsible for managing your employees, handling operations, and making all business decisions. Rather than spending valuable hours on HR, however, you’ll gain more time to focus on your core business and strategic growth initiatives.

Businesses of all sizes—from five employees to 500 or more—can benefit from the wide range of HR-related solutions that PEOs offer. Rather than asking if your company is too big or small, consider asking, “Can a PEO help me address my HR needs and challenges?”

Here are some common reasons businesses of various sizes choose a PEO:

• Access to medical plans, retirement plans, and ancillary benefits at more affordable rates.
• Desire to offload time-consuming HR administrative tasks and focus on growth and core business functions.
• Help navigating the complex regulatory compliance landscape and avoiding costly fines and penalties.
• Access to integrated HR technology that helps streamline tasks and improve efficiencies.
• Improve ability to attract, find, and retain top talent.
• Help creating a safer, more compliant workplace.

PEOs typically charge for services either as a percentage of total payroll (between 3-8 percent) or as a per-employee-per-year (or per-month) fee. This fee varies based on factors such as the services provided and number of employees on payroll. A larger number of employees in your business equates to a lower PEPY fee.

According to a recent NAPEO report, the average annual cost of a PEO is $1,395 per employee. A typical range for PEO services with G&A Partners is $65-150 per month per employee for core HR functions. Employer-paid benefits costs are often a separate line item. PEOs may also charge a one-time implementation fee.

Some PEOs bundle their services together, which means customers pay for services they may not need. At G&A, we begin with a PEO service package that includes core HR functions. You can add enhanced services, which may come with additional fees. This approach allows G&A to keep costs lower for its customers.

In a co-employment arrangement, the PEO assumes primary responsibility for withholding payroll taxes, filing quarterly and annual returns, and remitting taxes. An IRS-certified PEO (CPEO), like G&A Partners, takes on greater liability and is solely responsible for handling payroll taxes, which provides your business more peace of mind.

With HR compliance, the responsibility is shared between the PEO and your business. A reputable PEO like G&A builds in compliant processes, provides regulatory updates and guidance to companies, and handles the administrative and reporting burdens of HR compliance. Ultimately, though, your business is responsible for compliance with employment laws.

A PEO co-employment arrangement means that your team members will benefit from G&A’s ability to negotiate better rates for top-tier insurance and other benefits, such as retirement plans and life insurance. It also means that instead of stressing about benefits or FMLA leave, your employees have direct access to dedicated HR professionals who quickly provide answers.

A PEO’s impact on employee experience is significant. NAPEO research reports employee turnover is 12% lower for businesses that use a PEO. Those businesses also report higher employee satisfaction and engagement.

Read more about how a PEO supports employee satisfaction and your bottom line.

G&A Partners stands out among HR outsourcing providers by delivering world-class HR services through customer service that is routinely rated almost 2x higher than the industry average.

Our people-first approach means we treat our clients and their employees like family. We get to know your business, then create a flexible plan tailored specifically to your needs and provide services in a way that helps your business thrive. Learn more about why G&A is the leading choice for growing businesses.

Deciding to engage G&A Partners for PEO services marks a new and exciting chapter for your business. G&A’s business advisors will provide a clear, easy-to-understand breakdown of the services (and accompanying fees) included in your PEO plan. Once you’ve agreed on the services and pricing, you’ll sign a client service agreement (CSA).

Within a week or so you’ll begin the onboarding phase—a process that averages five to seven weeks and establishes the foundation for long-term success. G&A’s onboarding team leads you through the process, which includes data gathering, benefits enrollment, system integration, payroll testing, and more.

Learn more about G&A’s PEO onboarding process in our step-by-step timeline article.