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Common PEO Misconceptions

Debunking PEO Myths

"PEOs are Bad for Small Businesses"

Nearly every business starts out as a small business. But did you know that only about 50% of small businesses make it to the 5-year mark? PEOs provide core services that businesses of all sizes can benefit from, but small businesses often need PEOs the most. If you’re a small business owner who spends a great deal of time processing payroll (and making payroll mistakes), dealing with human resources issues, or fretting over dissatisfied employees who want employment perks and benefits, then a PEO is the perfect solution.

"My Assistant is a Jack of All Trades, Doing the Work of a PEO"

Employees who can juggle multiple responsibilities are often key to the success of a business. But when it comes to employee privacy rights, these people are often overwhelmingly inexperienced. One person cannot effectively undertake an entire human resources department, payroll processing, safety and risk management, and the other services offered by PEO and still remain productive.

"PEOs are Bloated Payroll Companies"

While payroll processing is a main service offered by hundreds of PEOs, it is not the only service provided. Payroll companies only deal with payroll, and you may still be liable for their mistakes. A PEO takes over payroll liabilities while providing a plethora of other services.

"PEOs Take Over Your Business"

Not true! While PEOs can take over responsibilities for your business, and therefore become liable for certain risks, you maintain complete ownership and control of your business.

"PEOs Put HR Admins Out of Work"

If your business has a human resources director or department, you don’t have to worry about firing anyone. PEOs provide much-needed support to HR departments of every size, whether it’s just one person or entire teams of employees. Your HR associates are safe and will be led by the direction of professionals under the PEO, ensuring that the PEO is liable for compliance issues and regulations while your business remains safe. PEOs can also allow your HR administrators to focus on talent development and improving the overall workplace atmosphere.

"My Employees Won't Welcome a PEO"

We have found that this is almost never the case. PEOs can allow your business to offer a great deal of perks to employees who wouldn’t otherwise have access to vacation days, sick leave, health insurance, dental insurance, vision insurance, 401(k)s and so much more.