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Why We Love PEO This Valentine’s Day

Why We Love PEO This Valentine’s Day

Why We Love PEO This Valentine’s Day

We already love Professional Employer Organizations (PEO)– our clients do too.  Today we’re counting down our top 5 reasons why we love PEO:   Top 5 Reasons Why We Love PEO

1. National Capabilities: It ensures your compliance with local and federal laws, even if your business has locations in different states. Access to a national provider healthcare plan, not single state carriers

2. Liability Protections:  Some liability moves to the PEO service instead of your company. 

3. It saves you money on HR staff.  Being part of a PEO gives you a clear-cut idea of what your costs are going to be a year in and year out. The PEOs work tirelessly to keep their insurance renewals down, so their clients won’t leave. Every year they work with the insurance carriers to introduce new plans and ways to reduce the costs of insurance to their clients. This gives you the ability to forecast and know precisely what your costs will be.

4.  Technologies:  Online HR resources for self-service issues  Ability for employees to make personal changes on their own, online. Ability to track PTO (paid-time off).

 5. One Vendor: It streamlines HR tasks like payroll, taxes, employee benefits, worker’s compensation, 401K, and HR administrative tasks. 

Our PEO Quoting Tool ensures that we have first-hand insight as to what the small business owner needs to be successful. Click below for a quote.

PEO: Co-Employment


Economic Analysis: The PEO Industry Footprint in 2021

Economic Analysis: The PEO Industry Footprint in 2021

The PEO Industry Footprint in 2021 Laurie Bassi and Dan McMurrer, McBassi & Company May 2021

Professional employer organizations (PEOs) provide comprehensive HR solutions for small and mid-sized businesses by supplying them with a broad array of cost-effective HR offerings and expertise. This enables PEO clients to concentrate on growing their businesses while offering superior benefits and HR practices to their employees. Research in our previous white papers has shown multiple positive effects from these services: PEO clients enjoy a better chance of survival, higher growth rates, lower employee turnover, higher employee satisfaction, and they fared better during the COVID-19 pandemic. 


NAPEO’s White Paper series aims to help the general public and small business owners better understand the economic impact and value of the PEO industry and the ways working with a PEO can help businesses grow and thrive.

Our white papers have shown that:

  • Businesses in a PEO arrangement grow 7-9 percent faster, have 10-14 percent lower turnover, and are 50 percent less likely to go out of business.
  • PEOs are able to offer a broad array of HR services at a lower cost and offer access to retirement plans to small businesses that may not otherwise sponsor them.
  • PEOs provide services to 175,000 small and mid-sized businesses, employing 3.7 million people.
  • There are 907 PEOs in the United States.
  • The total employment represented by the PEO industry is roughly the same as the combined number of employees for Walmart (United States only), Amazon, IBM, FedEx, Starbucks, AT&T, Wells Fargo, Apple, and Google.
  • The PEO industry’s 175,000 clients represent 15 percent of all employers with 10 to 99 employees.
  • Administrative costs are around $450 lower per employee for businesses that use a PEO.


Learn how our PEO Partnership can help your group please contact us at [email protected] or (855)667-4621.

Put You & Your Employees in Good Hands

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For more information on PEOs or a customized quote please submit your contact. We will be in touch ASAP.

How PEO Clients Fared During COVID-19 Study

How PEO Clients Fared During COVID-19 Study

The 2020 COVID-19 pandemic has created unprecedented economic challenges for almost all employers, with small businesses hit especially hard.  But how have PEO clients faired during this historic time?  While there have been articles such as 6 Advantages of a PEO during COVID-19  explaining the positive advantages we now how  the data and analytics published by NAPEO  – White Paper on How PEO Clients Fared in the First Months of the COVID-19 Pandemic: A Comparative Analysis.

PEO clients were 119% more likely to have received PPP loans.

It turns out that PEOs have been very successful at helping their clients through this period of extreme difficulty. One of the most apparent ways is by helping clients to apply for and claim emergency funds available through the Paycheck Protection Program (PPP)

These funds were designed to help businesses navigate the economic disruption without downsizing. However, the PPP program turned out to be challenging to apply for and receive funds. PEOs have proved to be a major help in this regard. One PEO client told NAPEO: “I sat down at my computer one morning to request what I would need to get a PPP loan and it was already in my inbox (from my PEO), even before banks were allowed to accept applications… As a result of their service, I could focus on serving my clients.”

Specifically, only an average of 30.1% of small businesses nationwide received PPP loans, while fully two-thirds (65.9%) of comparable PEO clients received PPP loans.

PEO clients were 60% less likely to have permanently closed.

The effects of COVID-19 have proven so destructive that many businesses have permanently shuttered. While noting that it is too early to determine final survival rates, NAPEO’s survey did find that as of July 31, 2020, only 0.6% of PEO clients had permanently closed, compared to an average of 1.5% for all small businesses nationwide. There’s a similarly dramatic difference in temporary closures as well: only an average of 1.3% of PEO clients was still temporarily closed compared to 14% of all small businesses.

The NAPEO report suggests that PEO’s ability to help clients maneuver through new regulations and figure out ways to reopen safely played a role. As one of NAPEO’s member PEOs said, “We’ve helped our clients in a variety of new ways, with everything from return-to-work procedures and securing personal protective equipment to introducing solutions via mobile applications for contact tracing and office reopening management.”

Final Summary

So, from a percentage standpoint, compared to other small businesses, PEO clients are:

  • 119% more likely to have received PPP loans.
  • 72% more likely to have received their PPP funding in Round 1.
  • 91% less likely to still be temporarily closed.
  • 60% less likely to be permanently closed.

While the first wave of urgent needs from small and mid-sized businesses is behind us, smaller businesses will continue to face challenges as the recession and COVID-19’s impact continue. As the research shows, PEOs will provide unmatched support as these smaller companies anticipate and respond to the new normal.

360PEO is also here for you during this time. For more information on how a PEO can make difference for your small business please contact us at [email protected] or 855-667-4621.


Infographic How PEO Faired DuringC

Learn how our PEO Partnership can help your group please contact us at [email protected] or (855)667-4621.

Put You & Your Employees in Good Hands

Get In Touch

For more information on PEOs or a customized quote please submit your contact. We will be in touch ASAP.

PEO Pros and Cons

PEO Pros and Cons

When choosing the right PEO, especially when it comes to human resource management, you should ensure that they offer basic HR services like benefits, payroll, and compliance.

Pros of PEO

1. Flexible, scalable:

Bundled HR solution covers you as you grow.  i.e. Compliance changes based on # of employees. The HR Platform can handle 10 as well as 200 employees. The benefits scale up as you do. You are able to include value-added services as you grow.

2. Access to “Big-Company” infrastructure and benefits

  • More health care benefit options for employees and their families mean:
    • Attract high caliber talent in your industry
    • Retain your best employees
  • 401(k) and retirement planning 
  • Top-rated voluntary benefits and discount programs
  • HR technology platform for administering benefit plans

3.  Access to HR expertise

  • Support for payroll and employee needs.
  • HR and Human Capital consultants.
    • Benefits administration
    • Employee issues
    • Strategic HR planning:  Interview Traning and Permanence Management Reviews, etc. 
  • Ensure HR compliance with local, state and federal laws.

4. Shifting and sharing of liability

  • Workplace safety
  • Sexual Harassment
  • Employer Practices Liability Insurance
  • Affordable Care Act compliance
  • COVID and New regulations

5. Value

  • Time Saver:  You get back valuable time from doing redundancies. The average PEO client saves 10 hrs/month. 
  • Benefits Savings:  The average client saves 15-40% on medical benefits alone.   The national networks and robust benefits are also value-added. 
  • Savings on Workmans Comp. 
    • PEO’s are pay as you go WC. This means if you downsized in light of COVID you receive an adjusted lower rate the following month and not end of the year. 
    • PEO’s may be able to place hard to write Workmans Comp. Ex: Construction Industry
  • State Unemployment:  Since you are sharing in a larger company’s SUTA rate the rates are generally lower with lower fluctuations. If during COVID a company had high turnover their SUTA rate can jump much higher than a PEO. 

PEO Cons

1. Wrong PEO Selecting a PEO for the wrong reason(s): should be considered a long-term strategy, not a short-term fix.  Some PEOs may charge a percentage of salary instead of a clear per employee per month cost.  

2. Employers fear the loss of controEven though you will still be running your small business and making day to day decisions, the PEO will become the co-employer of your staff.  PEOs do NOT have control over your salary. You control who you hire/fire.  You decide on benefits eligibility waiting periods, plan selections, and employer contributions. The PEOs deal with HR responsibilities and risks, saving you countless hours and many headaches, but do not take away your independence.

3  System limitations   Because the PEO is a business as well, and has to meet it’s own deadlines, they may request certain payments upfront. This may mean a fundamental shift in your cash flow because there will be consequences for being a week late with your payroll taxes.

4. It is NOT for every small business depending on your industry and demographics you may or may not be the right for a PEO. While the vast majority of clients are indeed enjoying benefits savings for some groups the costs may be even higher than small group health insurance. Addiotnaly, some companies can develop above-average very high risk and become too much of a liability burden for the PEO and the client can be moved to a higher risk category. The very advantage of a PEO can make it a disadvantage – they can underwrite.  


Before you consider hiring a Professional Employment Organization, you should first find out what is a PEO so that you can know exactly what to expect from it. With the right PEO, you will be able to manage your businesses’ demand for growth and your employees as well. 

If you are looking for an insurance solution for your business, go to our website and check out our business insurance solutions. Do not hesitate to contact us for more information.


PEO What are the Stats?

What is a PEO?



Put You & Your Employees in Good Hands

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For more information on PEOs or a custiomized quote please submit your contact. We will be in touch ASAP. 

6 Advantages of a PEO during COVID-19

6 Advantages of a PEO during COVID-19

6 Advantages of a PEO during COVID-19

As COVID-19 unfolds, the importance of a PEO for a Small Business becomes evident. How can you protect your employees while also managing costs?  Here are examples of how our PEO clients have benefited.

 1. Rapid Law Changes

With recent CARES Act and FFCRA(Families First Coronavirus Response Act) to help struggling businesses, overwhelming info and regulations have mounted for the small business owner. Who is eligible for benefits? Tax credits? Furloughs and COBRA? Is their business Essential? Paid Sick Leave eligibility and additional tax credit entitlement?

PEOs provide a full team of experts who anxiously awaited the legislation, final rulings, and updates on all the Acts. They spend countless hours diving into legal jargon to answer business owners’ questions. Then, PEOs work alongside organizations to implement processes that assist in keeping the business compliant. They also help employees through the difficult time, with the livelihood of the business always in mind.

2. PEOs help with Paycheck Protection Program (PPP) loans through the CARES Act

Lenders are asking for historical payroll data and tax reports quickly produced by a PEO’s HRIS System. Many small businesses without HR help find these systems financially draining. Example: Needed 940/941 reporting is issued which can be sent to SBA Lender.  Also, several leading  PEO’s have supported clients with NYS Shared Loans Program.

Working with clients to understand options.

 3. Payroll Burden

Payroll administration is now a nightmare. Tracking the FFCRA emergency sick leave and expanded FMLA separately from regular sick and FMLA leave has thrown a wrench in many payroll processors’ systems. Add on any furloughed or terminated employee reporting and tracking, and now the job has doubled.

Instead, our PEO Clients are spending their time on mission-critical work that could make or break the business. Additionally, their payroll is processed by professionals who have the time and expertise to know the nuances of payroll and payroll tax laws with back up teams of professionals in place.

 4. Staffing Needs – On-Boarding and Terminations 

A minimum 75% of PPP loans must be spent on staffing costs.  Companies that had previously furloughed or terminated employees find they need to hire employees back. This comes with additional paperwork and many employee questions, such as whether benefits wait periods start over. 

Conversely, when businesses do need to furlough or terminate employees, the PEO is a great guide for compliance. The layoff process, COBRA,  paperwork including government reporting are supported. 

5. HR Excellence

Partnering with a PEO is much like gaining access to a full-service HR division, with a team of HR experts who are up-to-date with new and changing employment laws and able to identify ways to streamline your HR.

According to a report conducted by the National Association of Professional Employer Organizations (NAPEO), PEOs provide access to more HR services at a cost that is close to $450 lower per employee, compared to companies that manage their HR services in-house. 

 Studies show that businesses in a PEO arrangement grow 7-9 percent faster, have 10-14 percent lower turnover, and are 50 percent less likely to go out of business.

 6. Affordable and Better Benefits

By joining a large group risk-pool a a PEO can help employers gain access to high quality employee benefits, such as health insurance options with stable and affordable rates. Due to costs, small businesses often find high-quality employee benefits out of reach.  The savings on health insurance alone can pay for the PEO itself.  

If you’re interested in hearing more about the advantages of partnering with a PEO, we’d love to talk to you. Fill out the form below or email [email protected] for a FREE Consultation Today!

The information provided on this website is intended for informational purposes only.  Millennium Medical Solutions Corp. does not offer legal or medical guidance.  Those with legal or medical questions should seek appropriate assistance from a licensed professional.  Stay up to date by signing up for Newsletter and Coronavirus Dashboard below.

Learn how our PEO Partnership can help your group please contact us at [email protected] or (855)667-4621.

Put You & Your Employees in Good Hands

Get In Touch

For more information on PEOs or a customized quote please submit your contact. We will be in touch ASAP.

ROI of Using a PEO

ROI of Using a PEO

ROI of Using a PEO

The ROI on a PEO is 27.2% according to a new 2019 study released today by the National Association of Professional Employer Organizations (NAPEO) .

The new report focused solely on costs and calculated savings for PEO clients in five HR-related areas:

  • HR personnel costs
  • Health benefits
  • Workers’ compensation
  • Unemployment insurance (UI)
  • Other external expenditures in areas related directly to HR services (payroll, benefits, etc.)

An annual per employee savings of $1,775 is reached according to the study. Notable findings are lower employee turnover, higher rates of both employee and revenue growth, and enhanced  employee benefit offerings.

PEOs provide HR, payroll, benefits, workers’ comp, and regulatory compliance assistance to small and mid-sized companies. By providing these services, PEOs help businesses improve productivity, increase profitability, and focus on their core mission. Through PEOs, the employees of small businesses gain access to employee benefits such as 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits typically provided by large companies. A copy of the full study is available here.

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