How to Choose a PEO Service for Your Business

The operation of a small business can be expensive and time-consuming, where sometimes your attention is taking away from building your business. This is why small and medium-sized companies will consider outsourcing their administrative functions, like human resources and payroll, to a professional employer organization (PEO).

A PEO uses co-employment, which mean that they take over as employer of records and are responsible for the legal aspects of employment and compliance matters, and the business owner keeps control of the day-to-day supervision of their business.

Good PEO companies offer business solutions and services, such as managing payroll, taking over HR functions, handling tax administration, provide immigration consulting, draft complaint employment contracts, recruiting top talent, onboarding employees, and providing legal services.

There are many benefits in using a PEO service to grow your business, so how do you choose the right PEO service for your business? Your first action in finding the right service is to ensure the PEO is run as well as possible by considering the following:

  • Is the company a member of the National Association of Professional Employer Organizations?
  • Ensure they have the voluntary certification program for PEOs under the IRS, or are applying for it in the future
  • Be sure that the companies financials are reviewed and approved by an objective auditor.


You want a PEO service that is an expert in accordance and can help your business mitigate any compliance issues since compliance changes quickly, with new mandates coming down from the federal, state, and local authorities mandatory monthly. Being non-compliant can have expensive and time-consuming consequences for your business. PEOs should be knowledgeable in compliance and regulations and help guide you with any of your compliance concerns.


When choosing a PEO company to work with, you want to consider their range of benefits. Search to see what services the PEO companies offer, how the services compare to others, and what the cost will be for their services. If you are looking to hire a PEO in Spain, Globalizationpedia is the right company for you.


You want to work with a PEO company, just like this Canada PEO, that has established a track record of working and succeeding with companies like your business. Speak to customers, referrals, and business partners of the PEO service to get a perspective on their performance with clients. Getting references from clients in the best review you can get on a PEO service.

Understandable Agreements

A service-level agreement (SLA) is a document that will drive the entire relationship between your business and the PEO service, so it is essential that you understand the SLA’s contents and that it provides insight into how much assistance, consulting, and guidance the PEO will be contributing to your business. This agreement, if understandable, will define the responsibilities of each party, and outline the duties your PEO will be taking over for you.

Final Thoughts

Choosing a PEO company can help your business with human resource, payroll, and capital management efforts, which will result in a happier workspace and employees. Gaining these benefits requires that you are partnering with the right PEO company, use the information above as a guideline for considering the best PEO company for your business. View a list of the best PEO companies on

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