What is a PEO?

A PEO, or Professional Employer Organization, is a firm that provides a comprehensive and turn-key employment solution for small to medium size employers. Under an IRS approved setup, PEOs deliver a co-employment solution where the employees are paid under the PEO’s IRS FEIN. The client is still the employer who hires, terminates, and manages the employees; the PEO manages many of the employer responsibilities in such areas as HR, Payroll, Benefits, 401K, and Compliance by providing a team of dedicated HR/Payroll/Risk/Benefit professionals, along with integrated HR systems & solutions, Fortune 100 benefits package, 401K, and asset protection to its clients.

This setup is ideal for clients wanting a simplified employment solution and a partner to help co-manage its employees without the need to maintain a fully staffed HR department with related systems and technology. Key value-add items to PEO clients: increased revenues, lower and long-term labor cost stability, and asset protection from complex and ever-changing federal and state regulations. Another plus to PEO clients is leveraging the PEO’s comprehensive benefits package to help attract and retain top talent providing an edge over industry peers to capture/retain top talent. PEOs are a good fit for growing and established firms providing cost-affordable solutions to eliminate the need to fully staff or maintain an HR department, eliminate the need to have multiple vendors, minimize state/federal employment risk, and eliminate non-revenue administrative time. Here is a detailed overview of the services provided by benefits by using a PEO:

Payroll Processing

Manages the payroll process, including issuing paychecks, handling direct deposits, and ensuring compliance with federal, state, and local payroll laws.

Employee Benefits

Provides access to a range of employee benefits, including health insurance, retirement plans, dental and vision insurance, and other perks typically offered by larger companies. This can make it easier for small businesses to attract and retain top talent.

HR Administration

Handles HR-related administrative tasks, such as maintaining employee records, tracking attendance, managing leave policies, and ensuring compliance with complex state and federal HR regulations.

Compliance and Risk Management

Helps businesses comply with federal, state, and local employment laws and regulations. This includes managing worker’s compensation claims, conducting safety training, and ensuring workplace safety standards are met.

Recruitment and Hiring

Assists with the recruitment and hiring process, including job postings, screening candidates, conducting background checks, and onboarding new employees.

Employee Relations

Provides support in managing employee relations, addressing workplace issues, handling grievances, and maintaining a positive work environment.

business Mission, Trusted vision

The mission of BridgeGap PEO Brokers is to empower your business by delivering expert guidance in selecting and managing PEO partnerships, ensuring cost savings, operational efficiency, and compliance – all while maintaining the highest standards of unwavering integrity, transparency, and professionalism. The vision of BridgeGap PEO Brokers is to be the trusted partner for your business, empowering your company to thrive by providing expert guidance, innovative solutions, and unmatched integrity in PEO selection and management.

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Statistics for companies using a PEO¹:

1. National Association of Professional Employer Organizations (NAPEO) www.napeo.org, 2023

  • Return on investment of using a PEO

  • Business using PEO grow faster

  • Lower levels of employee turnover for companies that used PEOs

  • Less likely to go out of business

Increased ROI by 27%
Increased Growth Speed by 8%
Lowered Employee Turnover by 13%
Decreased Risk of Going Out of Business by 50%