The PEO industry is composed of two different types of businesses: PEOs and PEO brokers. PEOs, or Professional Employer Organizations, are companies that provide HR outsourcing services to small and medium-sized businesses. PEO brokers, on the other hand, are businesses that act as intermediaries between PEOs and their clients.

PEOs offer a variety of HR services to their clients, including payroll processing, benefits administration, and compliance with labor laws. PEO brokers typically do not provide any HR services themselves; instead, they simply connect PEOs with businesses that need their services.

PEOs and PEO brokers differ in a few key ways. First, PEOs are usually much larger than PEO brokers. This is because PEOs provide actual HR services, while PEO brokers simply act as intermediaries.

Second, PEOs typically have more employees than PEO brokers. This is because PEOs need enough staff to actually provide HR services to their clients. Finally, PEOs usually charge their clients a monthly fee, while PEO brokers typically earn a commission on the businesses they connect with PEOs.

PEOs offer a variety of services to their clients, including:

Payroll processing

The payroll process of PEOs is more complex than the payroll process of most businesses. This is because PEOs are responsible for processing payroll for their clients as well as for complying with all applicable labor laws. PEOs use specialized software to help them with this complex process. This software helps PEOs ensure that they are paying their employees correctly and in compliance with all relevant laws.

PEOs also have a team of HR specialists who are responsible for ensuring that the payroll process goes smoothly. This team reviews employee files updates employee information and resolves any payroll issues that may arise. By using specialized software and a dedicated HR team, PEOs are able to ensure that the payroll process is accurate and compliant with all applicable laws.

Benefits administration

The benefits administration of PEOs is one of their main selling points. PEOs offer a variety of benefits to their clients, including health insurance, dental insurance, and vision insurance. PEOs also offer 401k plans and other retirement savings plans.

One of the benefits of using a PEO is that businesses can save money on their benefits costs. PEOs are able to do this by negotiating better rates with insurance companies and by offering bundled plans that include multiple services. By using a PEO, businesses can save money on their health insurance costs, dental insurance costs, and vision insurance costs.

PEOs also offer a variety of other benefits, including:

  • Life insurance
  • Disability insurance
  • Accidental death and dismemberment insurance
  • Cancer insurance
  • Pet insurance

Compliance with labor laws

One of the main benefits of using a PEO is that businesses can save money on their compliance costs. PEOs are experts in labor law and they know how to stay compliant with all applicable laws. PEOs have a team of HR specialists who are responsible for ensuring that the company is in compliance with all relevant laws. This team reviews employee files updates employee information and resolves any compliance issues that may arise.

By using a PEO, businesses can be assured that they are in compliance with all applicable labor laws. PEOs have a proven track record of compliance and they are experts in the field of labor law.

In summary…

PEOs typically have more employees than PEO brokers. This is because PEOs need enough staff to actually provide HR services to their clients. Finally, PEOs usually charge their clients a monthly fee, while PEO brokers typically earn a commission on the businesses they connect with PEOs.

So, what’s the difference between a PEO and a PEO broker? PEOs are companies that provide HR outsourcing services to small and medium-sized businesses, while PEO brokers are businesses that act as intermediaries between PEOs and their clients.

So ready to shop and compare PEOs? Get in touch with expert PEO brokers today!

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