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Common Professional Employer Organization (PEO) Myths

Common Professional Employer Organization (PEO) Myths

shutterstock 1013940655Are you overwhelmed by the number of administrative tasks you must complete for your business each day? Perhaps you have heard that working with a Professional Employer Organization (PEO) can lessen many of those burdens but are still hesitant to reach out.

Common PEO Myths

Business owners continue facing business challenges all on their own because of the following myths:

I will lose all my decision-making power – while a PEO assists you with all payroll obligations, tax filings, health benefits, etc., the employer remains in control of the day-to-day operations including pay, hiring, and firing. Though you will become a co-employer with the PEO for taxation and insurance purposes, there is no need to worry that you will lose control of a company you have put your blood, sweat, and tears into.

All HR outsourcing models are the same – if you have seen acronyms such as HRO, ASO, and PEO, you may have assumed they all mean the same thing. However, because you will file your taxes under the PEO’s tax identification number, the PEO becomes a co-employer. That means you both share the risk and the burden of employment. While partnering with a PEO allows your employees to receive increased job security and access to better benefits and retirement plans, your workers will remain on your payroll in the event you decide to end your relationship with the PEO.

I will spend more money than I will save – though you will have to pay the PEO a fee, you will still be saving both time and money by:

  • Having access to better insurance rates for your employees, which saves costs for you.
  • Increasing productivity by allowing you to work more efficiently, lessening time spent on most HR tasks.
  • Growing your business

As you can see, partnering with a PEO will let you focus on running your business the way you always intended but could not because of lack of time, resources, or tools.

For over 20 years, we have been providing our clients with the best customer service possible to allow them to enhance the productivity of both their business and employees. For more information on how you can partner with Professional Employer Resources Inc. (PER), please call us at 888-599-4991.


The staff is very friendly & prompt to answer any questions we may have.

Dan - Owner - Engineering and Research Company - Orlando, Florida

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