One Partner For
Payroll, Benefits & HR.
A Professional Employer Organization (PEO) enters into a co-employment relationship with your company. You continue to run the business and direct your people; the PEO becomes the employer of record for payroll, taxes, benefits and workers' compensation.
Watch: What Is A PEO? — 90 second overview
They run the administration.
You run the business.
The PEO handles
- 01Payroll processing and tax filings
- 02Employee benefits sourcing and administration
- 03Workers' compensation coverage and claims
- 04HR compliance, handbooks and documentation
- 05Onboarding, enrollment and employee support
- 06HR technology and self-service portals
You keep control of
- 01Who you hire and who you promote
- 02Pay rates, schedules and day-to-day direction
- 03Company culture, brand and operations
- 04Business strategy and client relationships
Hiring, pay and daily direction never leave your hands — the PEO only shares the employer paperwork defined in your service agreement.
Is a PEO right for your organization?
5 to 500 employees
Organizations large enough to need real HR infrastructure but too small to build it internally.
Rising benefit costs
Employers facing double-digit medical renewals who need access to larger-group pricing.
Multi-state payroll
Companies managing registrations, tax filings and labor law across more than one state.
Compliance exposure
Businesses without dedicated HR who need documentation, EPLI and audit protection in place.
Co-employment, step by step
Co-employment is a contractual split of employer responsibilities — not a transfer of your business. Here is what actually happens from agreement to steady state.
- 01
Discovery and census
We collect headcount, locations, wages, current benefit plans, workers' comp codes and loss history — the data every PEO underwrites from.
- 02
Market analysis
Your profile goes to the PEOs best suited to your industry, size and geography. We normalize each proposal so admin fees and pass-through costs are visible.
- 03
Service agreement
The Client Service Agreement defines the co-employment split: what the PEO administers as employer of record and what stays entirely yours.
- 04
Implementation
Payroll data, tax registrations, benefit elections and time systems are migrated. Typical timeline is three to six weeks around your payroll and plan effective dates.
- 05
Onboarding your team
Employees are enrolled in the PEO's master plans, get self-service portal access and a dedicated support channel for pay, benefit and HR questions.
- 06
Ongoing advocacy
We stay on as your independent advocate — service escalations, annual renewal review and re-marketing whenever the economics stop working.
Why employers move to a PEO
Large-group benefit pricing
Your employees join a master medical plan covering thousands of lives, unlocking carrier pricing and plan designs a small employer cannot buy alone.
Payroll and tax accuracy
Multi-state withholding, filings, W-2s and garnishments are handled by specialists, with the PEO carrying the filing obligation as employer of record.
Risk transfer and coverage
Workers' compensation is placed through the PEO's program with claims management, safety support and EPLI coverage included.
Compliance infrastructure
Handbooks, I-9s, leave administration, pay transparency, ACA reporting and audit-ready documentation — maintained continuously, not scrambled together.
Myths vs. reality
- “I lose control of my employees.”
- You remain the worksite employer. Hiring, firing, pay decisions and daily direction never leave your hands.
- “A PEO is only for very small companies.”
- PEOs serve employers from a handful of staff to well over a thousand. Fit depends on benefit spend, states and HR capacity — not size alone.
- “It always costs more than doing it myself.”
- Admin fees are real, but they are usually offset by benefit savings, workers' comp pricing and the internal headcount you no longer need to add.
- “Switching is disruptive to payroll.”
- Implementations are scheduled around your pay cycle and plan renewal so employees see continuity in paychecks and coverage.
How PEOs price their services
Proposals are rarely apples-to-apples. Understanding the two dominant fee structures is the fastest way to compare offers on true total cost.
Percentage of payroll
Fees run as a percentage of gross wages, typically 2–12% depending on services and risk. Simple to quote, but costs rise automatically with raises and bonuses.
Per employee per month
A flat PEPM admin fee decouples cost from wage growth, making budgeting predictable — usually the better structure for higher-wage teams.
What sits outside the fee
Statutory taxes, medical premiums and workers' comp are pass-through costs. Comparing proposals requires separating those from the admin fee itself.
Frequently asked questions
- Is a PEO the same as employee leasing?
- The industry evolved out of employee leasing, but modern PEOs operate a co-employment model. Your employees are yours; the PEO shares specific administrative employer duties defined by contract.
- How is a PEO different from an ASO or payroll bureau?
- A payroll bureau processes pay only. An ASO administers HR without co-employment or pooled benefits. A PEO becomes co-employer, which is what allows access to master medical and workers' comp programs.
- Who is responsible if there is an employment claim?
- Responsibility is allocated in the service agreement. PEOs typically provide EPLI coverage and HR guidance, while you retain accountability for worksite decisions and conduct.
- Can I keep my current insurance broker or carrier?
- Sometimes. Some PEOs allow carve-out or bring-your-own-plan arrangements; others require the master plan. We flag which structure each provider supports before you commit.
- What happens if I want to leave the PEO later?
- You can exit at contract terms, taking your employees, data and plan history with you. We help plan the transition back in-house or to another provider.
- What does WMA charge for this?
- Nothing separate. Our advisory work is compensated by the PEO you select, so you get independent market analysis, negotiation and renewal support at no added cost.
One Co-Employment Partner.
Every Employer Obligation Covered.
WMA is your independent PEO advisory partner. We evaluate providers on pricing, benefits, technology, service and compliance — then recommend the structure that fits your organization.
- Independent Expertise
- Better Benefit Pricing
- Risk & Compliance
- Payroll Accuracy
- Multi-State Support
Your team benefits. Your business grows.
Compare the PEO marketplace with an advisor who works for you. No separate fee, ever.
Find A PEO