Choosing a PEO also means that you are outsourcing all your HR functions - payroll, retirement, benefits, etc. Part of that includes large group insurance prices. In return, you pay a per-head fee to the PEO.

If cost is the primary driver for your decision the important thing is to compare the PEO fees vs how much money you will save on the discounted insurance. We have helped a few companies do this analysis - On a pure cost basis, we are a better option for some, PEOs win for others. Feel free to reach out to [email protected] if you want advice on your specific situation.