A brief history of professional employer organizations, also commonly referred to as PEO’s

  • Professional Employer Organizations or PEO’s have been in operation for over 30 years
  • history of professional employer organizations
  • There are over 700 PEO’s servicing businesses in all 50 states
  • Forty percent of businesses that utilize a PEO upgrade their benefits package as a result
  • PEO’s help tens of thousands of companies provide benefits such as health care plans, 401k tax-free savings accounts, and other perks to working Americans
  • Between 1980 and 2000. the number of labor related laws grew by nearly two-thirds
  • Owners of small or mid-sized business spent up to a 25% of their time on employment-related paperwork
  • Average cost of government paperwork and tax compliance for small businesses with less than 500 employees: $5,000 per employee per year
  • Businesses with fewer than 20 employees pay 60% higher compliance costs – $6,795 per employee per year

Some of the information provided here courtesy of National Association of Professional Employer Organizations (NAPEO) – please visit their website at www.napeo.org – and the U.S. Small Business Administration.