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PEO Services

How Can Working with a PEO Save Me Money?

Sarah Tupper
by Sarah Tupper on January 22, 2015

While hiring a PEO can help a business save time by outsourcing payroll and general HR needs, it’s also important to point out that hiring a PEO can also save a business money. Here are the top ways PEO’s save you money:

  1. Reduce your workers’ compensation rates. Most small businesses receive more favorable pricing on workers’ compensation premiums through PEO’s, in part because PEO’s gain group buying power from an expanded client base. A PEO like FrankCrum who owns its own workers’ compensation insurance carrier, can be even more flexible with pricing than insurance carriers on the open market.

  2. Offer you group rates on employee benefits. PEO’s enable clients to offer top employee benefits plans from national providers, cost effectively. Examples are group health, dental, vision, 401K, flexible spending accounts, and supplemental insurance. A lot of these plans do NOT require employer participation.

  3. Reduce your unemployment tax burden. In some cases and in certain states, PEO’s can extend state unemployment tax rates (SUTA) that are lower than a client's business can get on their own.

  4. Increase efficiency. PEO’s take a large amount of time-consuming HR related tasks off a company’s hands. This frees business owners and managers up to focus on business performance and growth.

  5. Improve your cash flow. PEO’s collect workers’ compensation premiums with weekly or bi-weekly payroll payments. Businesses who buy workers’ compensation outside of a PEO arrangement typically pay the annual premium up-front, or at least a large down payment with subsequent payments. They also pay an annual audit fee, which PEO’s like FrankCrum don’t charge.

  6. Reduce employee turnover. Working with a PEO allows employers to offer a sense of security by providing flexible payroll options, a self-service interface, attractive benefits plans, retirement options and a safe working environment.

For more information on how FrankCrum can help your company save time and money contact us at or (800) 277-1620.

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Sarah Tupper
Sarah Tupper

Sarah Tupper, Vice President of Direct Sales, leads the Direct Sales team at FrankCrum with a unique blend of experience in sales, corporate training and motivational speaking. Prior to FrankCrum, Sarah was a corporate trainer for 13 years.