
Written by
Emily Kubis
Emily writes about benefits, technology, the healthcare industry and more.
How to transition from a PEO

What employers should know
Is your organization looking to transition away from a Professional Employer Organization (PEO)? Some businesses employ a PEO to outsource HR tasks like benefits, workers compensation and more.
This strategy can work for some businesses, but many find they quickly outgrow this strategy. Why? Here are a few signs a PEO may not make the most sense for your business anymore:
- Customized needs: PEOs employ a one-size-fits-all strategy, but many organizations find that they need more customization in benefits or payroll.
- Expenses: PEOs often charge a percentage of payroll, targeting their service fee to equate to $1,000 - $1,500 per employee per year. As organizations add more employees, PEOs become increasingly expensive.
- Redundancy: Many groups find as they hire, PEO services become redundant.
If you’ve decided that a PEO is no longer the right strategy for your business, there are a few items you will need to consider. Use the following checklist to ensure a smooth transition.
- Taxes
- Payroll
- Workers’ Compensation
- COBRA
- 401(k)
- Health Benefits
- HR Administration
The first step is to work with an experienced benefits broker. A broker can handle all benefits and insurance-related needs, and can assist you in developing a transition plan for additional items.
Bernard Health has more than a decade of experience assisting in PEO transitions, and provides clients with BerniePortal, an all-in-one HRIS to manage benefits and HR administration. To learn more about any of these items, contact one of our advisors today.

Written by
Emily Kubis
Emily writes about benefits, technology, the healthcare industry and more.
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