What Is a PEO? (And Should Your Business Use One?)
- theshiftly
- May 16
- 2 min read
If you're growing a small to mid-sized business, there's a good chance someone’s told you, “You should look into a PEO.”
But what is a PEO — and why does it keep coming up?
Let’s break it down.
PEO = Professional Employer Organization
A PEO is a company that partners with your business to co-manage essential HR functions like payroll, benefits, compliance, and more.
You still run your business. But behind the scenes, the PEO is handling the heavy lifting.
The key term here is “co-employment.”
That means your employees are technically on both your books and the PEO’s. This structure gives smaller companies access to enterprise-level benefits and compliance support, without needing a big internal HR team.
What Does a PEO Typically Handle?
Payroll & tax filings
Health insurance & employee benefits
Workers’ comp & liability coverage
HR compliance support
401(k) and other employee perks
Regulatory compliance (federal, state, and local)
State-mandated benefits like paid family leave or disability insurance
Required legal updates based on new employment laws
Accurate PTO and sick leave tracking
Unemployment claims management
Mandatory trainings, like harassment prevention
Consolidated HR reporting for audits and oversight
Why Picking the Right PEO Matters
A good PEO can streamline operations, reduce risk, and improve your employee experience.
But the wrong one?
Charges hidden fees and inflates plan costs
Offers limited health plan options
Surprises you with steep renewal hikes
Creates frustrating user experiences for admins and employees
The good ones don’t do that.
And at Shiftly, we help you spot the difference before you sign a contract.
Is a PEO right for you?
There are a lot of factors to consider, from your company size and growth plans to your team’s benefits needs and your internal capacity.
That’s where Shiftly comes in.
We help small and mid-sized businesses:
Evaluate whether a PEO is the right fit for your current stage and future goals
Compare vendors (we know the real differences behind the polished sales decks)
Implement, configure or exit a PEO smoothly, without disrupting your team or operations
Fix inefficiencies inside your existing setup so your systems actually work for you
Whether you're exploring your first PEO, looking to make your current one work better, or ready for a clean transition. The Shiftly is here to make the process clear, strategic, and stress-free.
Curious whether a PEO is the right fit for your business?
Let’s talk.
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