Frequently Asked Questions

HR outsourcing, PEOs, and ASOs all provide help with HR tasks, but they aren’t the same thing. Here’s how they differ: 

• HR outsourcing is a broad term that covers any situation where a company contracts another organization to handle HR tasks. This could include payroll processing, recruiting, training, or benefits administration. 

• PEO (Professional Employer Organization) arrangements include a legal co-employment relationship. The PEO becomes the employer of record for payroll tax filings and benefits, which allows access to large-group benefits and shifts part of the legal responsibility to the PEO. 

• ASO (Administrative Services Organization) also takes on HR tasks, but without co-employment. The client company remains the sole employer of record, so taxes and benefits stay under the company’s name while the ASO provides administrative support. 

This means a PEO changes the legal structure of employment, while an ASO and general HR outsourcing do not. 

In a co-employment arrangement, the PEO acts as the official "employer of record" for payroll and benefits. This means that the PEO handles the paperwork for payroll taxes using its tax ID and is responsible for filing those taxes. They also manage benefit plans, enrolling employees in their larger group for insurance and securing better rates. 

At the same time, the business remains the legal employer of its employees. It still has complete control over what jobs need to be done, workplace rules, and decisions about hiring and firing. This setup helps reduce risks related to labor laws, taxes, and payroll compliance, while the business retains ownership of its workforce. 

Many businesses hire outside experts for tasks like payroll, employee benefits, workers’ compensation, and labor law compliance. Additionally, businesses often outsource recruiting, employee training, and the organization of HR paperwork. 

On the other hand, activities that directly impact the company’s culture and how employees interact with each other—like boosting employee satisfaction, team building, evaluating performance, and resolving conflicts—usually stay within the company. This strategy helps organizations keep a strong bond with their employees and create a positive work environment that reflects their values and goals. 

There isn’t a strict cutoff, but many businesses start considering HR outsourcing once they reach around 10–15 employees. At that point, payroll and compliance become more complex, and the cost of mistakes increases. Outsourcing helps smaller teams stay compliant while giving leaders more time to focus on growth. 

We work with businesses of many sizes, but our services are especially valuable for small and mid-sized companies. Smaller companies benefit from gaining access to affordable benefits and HR expertise they couldn’t manage alone. Mid-sized companies appreciate the compliance support and ability to scale without adding overhead. 

We partner with businesses across a wide range of industries, including construction, services, nonprofits, healthcare, manufacturing, and more. Our experience in these fields helps us understand the unique HR and compliance challenges each one faces. This allows us to tailor our support to the needs of your specific industry. 

Hiring in-house HR often makes sense once a company grows large enough to justify the salary of a full-time HR professional, usually around 75–100+ employees. Even then, many businesses keep a PEO for benefits and compliance while using an internal HR team for culture and people management. In many cases, it’s not an either/or choice — the two models can complement each other. 

We use a straightforward pricing model that can vary based on the size and needs of your business. In most cases, costs are based on the number of employees and the services you choose. 

We’re upfront about costs so you don’t run into surprises. Our onboarding fee, for example, is equal to one month of administrative costs, since we set everything up at least 30 days in advance to make sure your start is seamless. If you choose to offer the Questco Health and Welfare Benefits Plan, the insurance carriers pay us (or our affiliated brokers) a commission for services like plan design and administration. Those commissions are already built into the premiums — nothing extra is added to your bill — and the percentage depends on the insurer and product. Each year we share the exact numbers during renewals, and you decide whether to continue or opt out. 

We are often more affordable for small and mid-sized businesses because we focus on efficiency and tailoring services to fit your company’s size. Larger PEOs sometimes charge more for services that smaller companies don’t fully use. Our approach is designed to give you the right level of support without unnecessary cost. 

Outsourcing HR can save money by reducing compliance risks, avoiding costly payroll errors, and lowering benefit costs through pooled buying power. It also cuts down the time business owners and managers spend on administrative work. The savings come not just from direct costs, but from freeing up resources to focus on growth. 

The return isn’t just financial. Businesses often see improvements in employee satisfaction, lower turnover, and more consistent compliance. By outsourcing HR, leaders also gain back time and peace of mind to focus on running and growing the company. 

Yes, we provide access to retirement plans, including 401(k) options with company matching. We handle the administrative side, such as compliance testing and reporting. This makes it easier for you to offer competitive retirement benefits without taking on the full management burden yourself. 

Our HR and benefits plans are designed to be flexible. We tailor packages to fit your company’s size, industry, and employee needs. This means you get the right balance of coverage and support without paying for services you don’t need. 

Most PEOs go beyond administration by offering HR guidance, support for employee relations, and help with sensitive issues like workplace investigations. They may also provide training resources and compliance advice. The extent of this support depends on the specific PEO you choose. 

Yes, accurate and timely payroll is one of our top priorities. We use reliable systems to ensure employees are paid correctly and on schedule every time. If an issue ever arises, our team is quick to resolve it. 

We make it easy to get in touch when you need help. Our clients work directly with Client Service and HR experts who can jump in quickly to answer questions or solve problems. Many have told us that this personal, approachable support is one of the things they value most about partnering with us. 

Our technology platform is built to streamline HR, payroll, and benefits processes in a simple, user-friendly way. While larger PEOs may have more complex systems, we focus on tools that are easy to adopt and useful for employees and managers. This balance keeps things efficient without overwhelming your team. 

No, outsourcing HR does not mean giving up control of your team. You remain in charge of hiring, promotions, performance management, and shaping your company culture. An outsourcing partner only takes care of the behind-the-scenes work like payroll, benefits, and compliance. This frees leaders to spend more time on culture, engagement, and developing people, rather than getting buried in paperwork. 

In a PEO arrangement, the PEO becomes the “employer of record” for payroll taxes and compliance filings. This means the PEO shares legal responsibility for those areas. The client company still makes all business and personnel decisions, but the PEO helps reduce risk by handling filings correctly and staying up to date on regulations. 

Yes, we are an IRS-certified Certified Professional Employer Organization (CPEO). This certification means we meet strict IRS requirements for financial stability and compliance. For clients, it provides additional peace of mind that payroll taxes and filings are handled correctly and without added risk. 

PEOs employ HR and compliance experts who monitor changing employment laws and update practices as needed. They handle filings, track deadlines, and make sure payroll and benefits stay compliant with all regulations. This reduces the risk of fines or legal issues for the client company. 

A PEO can take over payroll, benefits, and compliance through co-employment, giving you access to better benefit rates and reducing legal risks. A fractional HR consultant is more focused on strategy and guidance but doesn’t provide co-employment or benefits administration. Many companies use a consultant for leadership coaching or culture work while keeping a PEO for the heavy administrative side. 

Outsourcing payroll only covers paycheck processing and tax filings. A PEO, on the other hand, bundles payroll with benefits, workers’ comp, compliance, and HR support. Businesses that just want simple payroll might use ADP, while those needing broader HR help often turn to a PEO. 

Yes, many companies keep their HR staff when they join a PEO. The PEO handles complex or administrative tasks, while the in-house team focuses on culture, training, and employee engagement. This partnership can strengthen HR by giving internal staff more time for people-focused work. 

We make the transition process as smooth as possible if you decide to move on. Our team provides the records and supports you need, so payroll, benefits, and compliance information transfer cleanly. While leaving any PEO requires some coordination, we aim to make it straightforward and transparent. 

It helps to ask about pricing structure, contract terms, and what services are included. You should also ask about customer support, technology tools, and how the provider handles compliance. Finally, check their track record, reviews, and whether they hold certifications such as IRS CPEO status.