How to Hire a PEO Service


PEO stands for Professional Employer Organization, can help businesses with managing payroll-related taxes, human resources, and any other employee-related administration tasks that are needed to run a successful business. below in this article, we will cover the How to Hire a PEO Service.

How to Hire a PEO Service
How to Hire a PEO Service

How Does a PEO Work?

With PEO companies, your business enters into a co-employment agreement, which means you both will share liabilities. You would look after your day to day business functions and growing your business, and the PEO company will look after human resource administration, benefits, and payroll processing. 

Who Should Work for a PEO Company

The best national PEO companies to work with are focused on smaller businesses that do not have resources to HR-related administration and payroll administration. Companies that should work with a PEO are businesses that want to reduce their risk of labor costs, or offer benefits to their employees. A small business benefits the most from partnering with a PEO company, and receives the perks that larger corporations can offer.  

Steps for Hiring a PEO

You will spend money to work with a PEO company, and there will be saving on benefits that are offered to employees, such as health insurance. You will need to research PEO companies, and their services provided to see which companies will be the best fit for your business. Here are the steps to hiring a PEO service:

  • Meeting with PEO Services – You need to research PEO companies, an example is this Japan PEO, to see which company is the right fit for your business. When you’ve decided, you should meet with your choice for a more in-depth meeting where you will review pricing and instructions on how the PEO’s services will work. 
  • Employ a PEO – It takes 30 days to implement a PEO company into your business. The PEO service will begin at the start of your payroll period. During this time, multiple steps need to be completed, such as collecting and verifying I-9 forms for each employee, onboarding and enrollment meetings, and a selection of benefits.
  • Enrollment and Setup – Once the initial enrollment meeting is completed, the PEO company will begin enrolling your employees immediately. The PEO company will set the timeframe for the enrollment. Typically, the timeline is 7 to 10 days to complete the selection of benefits. 


A Timeline for Hiring a PEO Service

The time frame you can expect for a PEO company to set up is typically 30 days from start to finish. Usually, this is the timeline that you can expect from start to finish when onboarding your company.

  • Step One – researching and getting quotes for PEO companies; this step should take one day
  • Step Two – scheduling proposal reviews; this step takes three to five days
  • Step Three – meeting with the chosen PEO company; this step takes six to ten days
  • Step Four – Review the agreement with the PEO company; this step is 10 to 15 days
  • Step Five – implement PEO services; this step takes 15 to 30 days


PEO services charge based on employees and can range from under a hundred dollars a month per employee to thousands of dollars per year.. If you are a start-up or small business and need help with payroll compliance, tax processing, and employee benefits, a PEO company might work for you. 

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