Moving from PEO

Has anyone moved from a PEO?  I am looking for best practices etc. on what things to consider when considering moving away from PEO.  We are a small company that has now grown to 80+ employees and expect to have more than 100 by the end of the year.  We are located in the US, PHP, Canada, and Aus.  I am only looking to move away from the PEO in the US but continue utilizing our other PEO for our global employees.

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  • Penny -

    We've worked with a number of clients helping them transition from a PEO to in house HR or outsourced HR.  

    Treat yourself like a startup.  What do you need from an HR perspective - policies, procedures, tools, benefits, compensation, payroll (just to name a few)?  

    Also look closely at your PEO contract. Some provide more than the "HR" including some general insurance coverage.  

    Timing is critical - when does your contract end and line up all the services and solutions you need to have in place?  We've had some clients do this nearly overnight and other with at least a six month lead.  

    I'm happy to talk to you further if you'd like. I'm out of the country until June 15th but feel free to reach out to me on email ( ) and we can schedule a time to talk when I return.

    • Janelle Rodriguez
    • HR Enthusiast | Mentor | Avid Learner
    • Janelle_Rodriguez
    • 6 yrs ago
    • Reported - view

    Hi Penny G !  Hope all is well!

    I currently support a PEO platform and there are several things to keep in mind when making this transition:

    • Federal & State Unemployment insurance taxes will start over with each Federal ID that taxes are reported under during the calendar year.  This could have a significant financial impact to your business.
    • Reactivation of your firm’s Federal & State ID Numbers for tax filing purposes will be required
    • Reactivation of Powers Of Attorney (POA) as needed for State Unemployment purposes for applicable states
    • Obtaining your own Worker’s Compensation insurance policy to avoid a gap in coverage (obtain a loss run report)
    • Obtain a Section 125 Premium Only Plan and/or Flexible Spending Account plan (if applicable) 
    • Transition or termination of 401(k) Retirement Plan (if applicable). Please note that associated costs may apply such as transfer fees.
    • W-2's may be mailed to each employee's last known home address on file, be sure to get address updates from employees and provide resources for former employees to update their own address information. Employee online access may be disabled once the account is terminated.
    • Obtain any copies of records or files prior to account termination. Some providers may charge and/or the online access may be disabled.
    • Consider all the insurances/fringe benefits that you may offer to employees through the PEO such as medical/dental/vision, GAP, STD/LTD, Life, voluntary products, EAP, employee discount provider, etc..

    I trust this brief list will be beneficial in helping you with a smooth transition as you offboard your company away from a PEO.

    Take care and have a great day!



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