7 Best PEO Services Every Small Business Needs

As a small business owner, you know first-hand how challenging administrative work can be. On top of running your company, there are endless little tasks within payroll, HR, and health insurance that bog you down and sap your energy.

PEOs like BBSI recognize these challenges. That’s why we’ve developed game-changing solutions that can save you time and help you focus on achieving your business dreams.

However, we also know that choosing the right PEO is not straightforward. To help, we’ve got a list of the 7 best PEO services that every small business needs. Use this to evaluate every PEO you come across to make sure they’re providing the top-tier services you deserve.

1. Payroll: More Than Just Cutting Checks

Effective payroll is like a good referee in a football game – you forget they’re even there.

Achieving this means running a tight ship; keeping things accurate, compliant, and efficient while avoiding costly mistakes that can drain your resources.

The best PEO services handle payroll from start to finish, ensuring:

• Error-free processing: Reviewing payroll data, reconciling discrepancies, and applying industry best practices to minimize mistakes before processing payments.
• Regulatory compliance: Payroll specialists stay updated on wage laws and tax regulations, helping businesses remain compliant with federal and state requirements.
• Seamless tax filings: Calculating payroll taxes, filing them with the appropriate agencies, and providing detailed reports to keep your business audit-ready.

Plus, with easy-to-use payroll software, you and your employees get 24/7 access to pay stubs, tax documents, and direct deposit updates right from a phone or computer.

2. Human Resources: Building a Strong Foundation

HR is the backbone of your business. However, from hiring the right people to staying compliant with employment laws, it's a lot to manage and will only become more time-consuming as you grow.

A PEO can help alleviate HR burdens and turn it into a strategic asset by providing:

• Recruiting and onboarding: The PEO sources qualified candidates, screens applications, conducts interviews and creates customized onboarding plans.
• Compliance: HR experts track employment law changes, review company policies, and evaluate HR procedures to help you stay compliant.
• Retention strategies: The best PEO services conduct employee engagement surveys, analyze turnover trends, and offer models for career development plans and competitive compensation packages.

With professional HR guidance and technology, you can stop reacting to workforce issues and start proactively managing your team for long-term success.

3. Workers' Compensation: Protection That Pays Off

When it comes to workers’ compensation, expect your PEO to do more than just meet legal requirements.

The best PEO services make every effort to help you save money and avoid headaches by reducing claims, improving safety, and ensuring premiums are predictable.

• Pay-as-you-go premiums: The PEO integrates payroll data with insurance carriers to calculate premiums in real time, ensuring accurate payments and eliminating year-end audits.
• Claims management: Dedicated specialists handle paperwork, liaise with insurance providers, and support employees throughout the claims process to ensure timely resolutions and minimize disruptions.
• Risk mitigation: The PEO conducts workplace safety audits, provides on-site training, and develops customized safety programs to help you prevent injuries and lower your X-mod.

With round-the-clock injury hotlines, claims oversight, and expert safety training, a PEO helps you create a culture of safety while keeping costs under control.

4. Health Benefits: Keeping Your Team Happy and Healthy

A solid health benefits package is a required tool for attracting and retaining top talent. The right PEO should take the administrative burden off your shoulders and help your business offer comprehensive, flexible plans that keep employees satisfied and productive.

Look for a PEO that offers:

• Hassle-free administration & enrollment: They should manage everything from plan setup and employee enrollment, to compliance with regulations like COBRA and ACA, ensuring a smooth process without disruptions.
• Customizable plan options: The best PEO services work with top insurance providers to offer a range of medical, dental, and vision plans that align with your budget and meet your employees' unique needs.
• Ongoing support & education: Employees should have access to benefit guides, one-on-one assistance, and a portal where they can easily review their coverage options and make informed decisions year-round.

With a PEO handling benefits, you can offer competitive packages without the headaches of managing multiple vendors and compliance requirements.

5. Staffing & Recruiting: Finding the Right People, Faster

Hiring the right people takes more than just posting a job online and hoping for the best. A great PEO acts as your recruiting partner, leveraging their network and expertise to help you build a high-performing team that fits your company’s needs and culture.

The right PEO can deliver:

• Efficient candidate sourcing: The best PEO services use advanced recruiting platforms, industry connections, and targeted outreach to attract top talent for your open positions.
• Comprehensive screening: A PEO should handle background checks, employment verifications, and skills assessments to ensure you’re only interviewing qualified candidates.
• Flexible hiring options: Whether you need temporary, temp-to-hire, or direct-hire placements, your PEO should offer staffing solutions that align with your business’s fluctuating demands.

With a PEO streamlining the hiring process, you save time, reduce hiring risks, and gain access to a deeper talent pool.

6. Risk & Safety: Safeguarding Your Business for the Long Haul

The risk of fines is just the tip of the iceberg when it comes to employee safety. Protecting your employees also affects morale and directly impacts how effectively your business runs long-term.

Expect the following from the best PEO services:

• Personalized risk assessments: They should conduct on-site evaluations to pinpoint specific risks unique to your business and create tailored safety plans.
• Employee safety training: A PEO offers customized training programs to educate your workforce on best practices, ensuring they stay vigilant and compliant with safety protocols.
• Incident response planning: In the event of an accident, your PEO should guide you through the investigation, reporting, and resolution process to minimize disruption and future risk.

By partnering with a PEO that prioritizes risk mitigation, you’ll create a safer work environment and avoid unnecessary liabilities.

7. Business Strategy: Your Roadmap to Growth

Beyond the day-to-day operations, the best PEO services help you think bigger. They’ll act as a strategic partner, providing insights and tools that support your company’s long-term growth and sustainability.

The best PEO services can offer:

• Custom business blueprints: They’ll work with you to develop a comprehensive plan that outlines your business goals, challenges, and the actionable steps needed to achieve them.
• Operational efficiency improvements: A PEO should analyze your workflows, identify inefficiencies, and recommend process improvements that streamline operations and boost profitability.
• Ongoing strategic support: Through business coaching, roundtable discussions, and industry insights, your PEO should help you adapt to market changes and stay ahead of the competition.

The best PEO services will know that your growth is directly tied to their own, so they’ll be directly invested in helping you achieve your vision.

Trust BBSI for the Best PEO Services

Running a small business comes with no shortage of challenges; managing payroll complexities, staying compliant with ever-changing regulations, attracting and retaining top talent, and keeping your workplace safe and efficient.

Trying to juggle it all can leave you stretched thin and distracted from growing your business. That’s where partnering with the right PEO makes all the difference.

BBSI provides the expert support you need to navigate these challenges with confidence. From payroll and HR to workers' comp, benefits, and business strategy, we offer comprehensive services that empower you to focus on what matters most — your success.

Contact your local BBSI representative today to learn how we can help you streamline operations, reduce risk, and take your business to the next level.