Frequently Asked Questions

1. What are the pros and cons of a PEO vs. hiring a fractional HR consultant?

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.

2. What’s the difference between outsourcing payroll and working with a full PEO?

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.

3. Can I keep my existing HR team if I bring in a PEO or outsource part of HR?

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.

4. What questions should I ask before choosing an HR outsourcing provider?

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.