5 Reasons to Outsource Payroll Through a PEO

If you outsource your company’s payroll, what type of service are you using? Did you know that one option comes with more benefits than the others? A Professional Employer Organization, or PEO, can provide you with payroll services and many other HR advantages.

Here are five reasons to outsource your payroll through a PEO.



If you want to attract and retain top talent, you need a competitive benefits package. A PEO combines the employees of many small and mid-sized organizations to create a larger pool for better benefits rates and minimal liability. The PEO shops for the best price, administers the programs, and acts as a liaison between your employees and the carriers for the best customer experience possible.

An astounding 80% of employees would keep a job with benefits rather than accept a job that paid more but lacked benefits. A PEO can help your business offer employees medical, dental, vision, disability, and life insurance plans.



Yes, 401(k) and retirement plans are considered benefits. But worth mentioning are the benefits of joining a multiple employer plan as a PEO client. For example, Tandem HR partners with Slavic401k where the multiple employer plan features no administrative costs to the employers. The employees absorb a minimal administrative cost. Additionally, the plan covers the annual audit, which often costs a company tens of thousands of dollars, depending on the size of its program.


Workers’ compensation

Workers’ compensation coverage is typically required of businesses, though there are some exceptions. But whether you’re legally required to have coverage or just find the process of securing coverage overwhelming, a PEO can help.

When you partner with a PEO, you gain access to a group workers’ compensation insurance pool. Additionally, you gain risk and safety professionals on your team to make sure your business remains a compliant and safe place to work. For those with a damaging claims history, this team will put together a plan to improve your experience. You’ll be fulfilling your legal requirements and protecting your employees without additional stress.


Employment law compliance

Employment law compliance is complicated. There are hundreds of laws and regulations to adhere to, many of which are continually changing. And at the end of the day, one honest mistake can cost you your business.

Some companies simply don’t have the budget to hire an experienced HR professional as part of their internal staff. Others don’t have enough full-time work for one. Some have an HR professional that would like to focus on more strategic initiatives and needs help with the administrative portions of HR. In any case, partnering with a PEO is a smart alternative. PEOs grant you access to a full team of HR professionals to assist your employees as needed. You’ll remain compliant without breaking the bank.


Single solution

Organizations that outsource their payroll through a company other than a PEO are most likely working with multiple vendors for things like benefits, workers’ compensation, employment law compliance, and more! PEOs handle all of these together in the same place. Also, this gives your HR team the full picture, allowing them to be more strategic in their decisions and process development.


Outsource Payroll the Smart Way

Finally, if you’re already outsourcing payroll or thinking about making the switch, consider working with a PEO. Not only will they professionally handle your company’s payroll, but you’ll have access to assets and resources to help you improve your work environment and grow your business.


Reach out to Tandem HR today to get the process started, we are happy to help. Fill out the form below or give us a call today at 630-928-0510.

Tandem HR is an IRS Certified Professional Employer Organization (CPEO) providing hundreds of businesses with high-touch and custom HR solutions. We also provide payroll, benefits, risk management, employee relations, and much more.