Compare PEOs, PEO insurance and PEO workers compensation

PEOs versus payroll processors

PEOs work by creating a contractual co-employment relationship which allows them to incorporate client workers compensation and unemployment tax within their own master insurance policy and tax rates.   Employers who utilize PEOs will eventually reset their experience modifier and current unemployment tax rates.

Outsourcing to PEOs may be a good decision or a bad move depending on an employers current situation as well as the PEOs ability to maintain a healthy claims history and employer tax rates. 

Employers are best served by taking a broad approach to shopping PEOs and comparing their unique situation and needs to multiple solutions including PEOs, payroll, and standard insurance.

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