PEO Services: PEO services fall into 5 categories

Online Payroll: Much like Paychex or ADP, a PEO will process your paychecks and report you tax information to the State and Federal Agencies. Most PEO's have online payroll capability, and the checks are either direct deposited for you employees or the paycheck is Fed Ex'd to your location(s).

Workers Compensation Insurance: One of the most attractive benefits of the PEO offering is the affordability of Workers Comp Insurance and the faster handling and closing of claims (as compared to the State Fund). However, not all PEO's are equal with their ability to retain a large nationwide insurance carrier over a period of years. Some PEO's offer large financial rebates for good loss history, others do not.

Medical Benefits: PEOs contract with a wide variety of medical companies such as Kaiser, Blue Cross, Aenta, Pacific Care and others for health, dental and vision coverage. Not only does the PEO typically handle the enrollments, but they will also handle all the paperwork and manage the whole process, including Cobra Administration and Section 125. Like Workers Comp, Medical Benefits is another area where PEO's are apt to differ in their product offering and price.

Human Resource Information Systems (HRIS): Most PEO's provide a co-branded IT platform where employees can look up paystubs, insurance selections, company news, employee contact information, etc. Typically the information system is also a resource for the office manager or HR director to be able to download up to date and compliant HR forms. In addition, many IS systems have a legal portal where one can research questions pertaining to FLMA, Wage and Hour, Wrongful Termination, and other HR related topics.

HR Consulting: Most PEO's have licensed HR professionals on staff. Typically they will meet with the client to analyze their HR infrastructure and practices and help put forth a plan to create a top notch HR plan. Not all PEO's are equal in this regard. During the sales process you should ask to meet your HR specialist. Some PEO's have better HR talent than others.