Unveiling the Power of Professional Employer Organizations (PEOs)

The Payroll Setup Team

In the evolving landscape of modern business, finding efficient solutions to complex challenges is paramount. One big challenge that often consumes significant time and resources for businesses of all sizes is managing human resources.

From payroll processing to navigating ever changing regulatory landscapes, the demands of HR management can be overwhelming, especially for small and medium-sized businesses.

However, amidst these HR challenges, a new growing model of HR support in the form of Professional Employer Organizations (PEOs) has provided relief and solutions for small businesses.

PEO’s offer a comprehensive suite of HR services, enabling companies to offload administrative burdens and focus on their core business.

Let's delve deeper into the realm of PEOs and unveil the power they wield. 

Understanding the Role of PEOs

At its core, a Professional Employer Organization (PEO) functions as a strategic partner, assuming responsibility for essential HR functions on behalf of client Companies.

PEO clients are pooled together, which provides significant negotiating leverage that businesses on their own could not achieve. PEO’s offer health insurance, worker’s compensation, payroll processing, HR compliance management, risk mitigation, commuter benefits, 401(k) plans, and more. By leveraging economies of scale in these areas PEOs empower businesses to streamline operations and enhance efficiency.

Also a co-employer, a PEO ensures their clients comply with state and federal labor laws and uses HR best practices. They’re certified in HR and have the tools and experience to maximize employee effectiveness while minimizing risk. They know HR laws, and their systems are programmed with tax tables and compliance tools to help you avoid legal mistakes or fines.

Additional Benefits of PEO Partnership

Cost Savings: Through pooled resources and negotiated rates, PEOs can often provide access to employee benefits, such as healthcare and retirement plans, at lower costs than individual companies could secure on their own.

HR Expertise: PEOs employ HR professionals who stay abreast of ever-evolving labor laws and regulations. This expertise helps ensure compliance and minimizes the risk of legal issues.

Focus on Core Activities: By outsourcing HR functions to a PEO, companies free up valuable time and resources to focus on core competencies and strategic initiatives, fostering growth and innovation.

Improved Employee Experience: With streamlined processes and access to comprehensive benefits, employees often experience increased satisfaction and engagement, contributing to higher retention rates.

Scalability: As businesses grow or contract, PEOs provide scalability, adjusting services to meet changing needs without the hassle of hiring or downsizing internal HR staff.

Overcoming PEO Misconceptions

Despite the undeniable advantages of partnering with a PEO, misconceptions about these organizations persist. Some businesses fear a loss of control over HR functions or worry about disruptions to company culture. However, reputable PEOs operate as collaborative partners, working closely with clients to align services with their unique goals and values. PEOs can enhance it by providing support and resources that foster a positive workplace environment.

Partner Spotlight: Justworks PEO

Justworks is a highly affordable, IRS and ESAC certified PEO. These certifications shield your company from liability for tax errors. They provide payroll compliance and tax processing, enterprise-level benefits packages from major health insurance companies like Aetna, Kaiser Permanente and United Health Care, 401(k) programs, HR support, workers’ comp, and more.

Justworks is ideal for small to mid-sized businesses looking for HR support and an affordably priced option. Justworks also has a payroll-only option which requires just one W2.

If you’re looking for a powerful PEO to help bolster your small business, consider partnering with Justworks. See Justworks' user-friendly software in action in the video above.

Joining Justworks can start as low as $59 per employee.


Basic: $59 per employee monthly for up to 49 workers ($49 per employee monthly for the 50th worker onwards)

Plus: $99 per employee monthly for up to 49 workers ($89 per employee monthly for the 50th worker onwards)


• Unlimited payroll, off-cycle pay runs, and contractor/vendor payments

• No hidden fees (setup, admin, off-cycle, etc)

• Access to high-quality employee benefits and wellness perks

• HR solutions can help you manage onboarding, paid time off (PTO), and employee information

• Solid HR, payroll, and compliance support

• 24/7 customer support via phone, email, chat, Slack, and short message service (SMS) software.

• Special pricing, resources, and grants for non-profits, women, and minority-owned businesses.


• 24/7 customer support via phone, email, chat, Slack, and short message service (SMS) Software  

• Sleek easy to use software for both small businesses and their employees

• Special pricing, resources and grants for nonprofits, women, and minority-owned businesses.

We 💙 Justworks