Professional Employer Organization (PEO) Transition

Due to economic and service factors, many of our Silicon Valley start-up clients make the decision to part ways with their Professional Employer Organization (PEO) when they reach 150 – 250 employees.  During the start-up phase, companies decide to work with PEOs to provide their staff instant access to health and retirement benefits, basic HR services, and ensure compliance with a myriad of tax and employment laws. From an initial cost perspective, PEOs make a lot of sense because they are able to pool employees from smaller companies and obtain improved rates on health insurance, workers compensation and state unemployment insurance. Depreciating Value Unfortunately, over time the cost …

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