What is a PEO?

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The problem

The deck is stacked against small businesses.

Small businesses have their hands full finding and serving their customers. They don’t have the time or resources to hire an internal team of experts to work on back office tasks that legally they’re required to perform. Even if they did, small businesses don’t have the scale to keep them busy.

Big Business HR

- HR Director
- Payroll admin
- Recruiter
- Benefits administrator
- Training and development

VS.

Small Business HR

- An owner
- Maybe an HR person with a dozen other jobs

The solution

Sharing resources through coemployment

What if small businesses could share experts and tools specifically designed to solve their HR, benefits, payroll and compliance problems. Enter PEOs. PEOs use coemployment to band together to share HR and Benefits resources, as well as to offload some employer-based risk.

Coemployment

noun [ U ]

A contractual relationship where businesses share certain employment responsibilities and liabilities.

The PEO difference

It’s not just tools - it’s the people.

With a PEO, you aren’t just buying different instruments. You have the musicians in the seats and the conductors working the symphony for you.  Here’s how the expert muscle makes beautiful music for your business:

Who’s a good fit for a PEO?

Look, no product is right for everyone.

Here are some common traits we’ve noticed in companies that really thrive in a PEO engagement vs. the companies that tend to experience a bit more friction.

The good fit

Interested in not only giving benefits to their employees, but making them affordable.

<100 employees

Mainly full-time employees

<3 full time HR employees

The bad fit

Not currently in a position to give their employees benefits.

100+ employees

Mainly part-time employees

Full HR staff

The give and get

As with anything in life, there are trade-offs. Here’s what employers tend to give up when they join a PEO and what they receive in return

The Get:

Best in class templated policies and compliance
A dedicated part-time HR expert
Access to Fortune 500 level benefits

The Give:

A (bit of) flexibility with your policies
An admin fee
Your name on your employee’s W2

How Decent’s PEO is different

There are 487 PEOs in the US - Decent is the only one to directly administer the health plan offered. We cut out the middleman which lets us offer health plans about 35% below market rate and admin fees at about 1/10th the industry average.

Learn more about our health plan

“With a PEO, you get the peace of mind of a full service HR Department and the benefits are undeniable. Small businesses that work with a PEO grow 7 to 9 percent faster, have employee turnover that is 10 to 14 percent lower, and are 50 percent less likely to go out of business.”

NAPEO - National Association of Professional Employer Policy Organizations

PEO FAQs

Why do I have to switch my payroll?
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As a coemployer there are a handful of things that PEOs are legally required to handle for their clients. Payroll is one of them. If you’re in love with your current payroll set up, I would reach out to a benefits broker and an outsourced HR organization to help you close some of the gaps that PEOs tend to take care of.

Can a PEO fire my employees?
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A PEO manages the details of offboarding employees. While they need technical clearance to release an employee from your joint employment, a PEO would never do so without direct instruction from the client employer.

Can I just get the Decent health plan?
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Nope. The health plan is only offered to “employees” of the PEO.

Why is the PEO’s name on my employee’s W2?
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The PEO files your state, local and federal taxes for you. In the process, the PEO’s name appears on the employee’s W2. This tends to prompt some questions so we make sure to keep your employees up to date with some education throughout onboarding and timely reminders later on around tax time.

Will my employees get two W2s at the end of the year?
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They will if you’re transitioning onto the PEO mid-year. Your previous payroll provider will handle filing your taxes for the portion of the year you’re not with your PEO. (we’ll provide you with a guide to get that all handled).

What are Decent’s expansion plans?

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What drugs, at what rates, are in Decent’s formulary?

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If my client buys a virtual DPC plan from Decent, what happens if they want to see an in-person primary care doctor?

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Do Decent plans offer emergency or standard coverage outside of Texas?

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How do I get a quote for a client?

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How does Decent track and pay commissions for its appointed brokers?

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How do I get added as a Broker of Record (BOR) to an existing policy?

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What are the participation and contribution requirements for small business plans?

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How do I know if my clients are eligible to enroll?

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How do I update my agency and general agency affiliation?

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How do I access my Broker account and what can I do from there?

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How can I get appointed to sell Decent’s plans?

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