Top PEO Solutions Explained

In this blog, we’ll break down:

• What a PEO actually is and how it works
• The top ways PEO solutions benefit small businesses
• Why referral partners like brokers, CPAs, and consultants should care
• How to choose the right PEO partner, and why BBSI stands out

Let’s start with the basics: what exactly is a PEO?

What Is a PEO?

A PEO, or Professional Employer Organization, is your HR department—and then some. It’s not a payroll app. It’s bigger, sharper, and designed to give your business real leverage.

The Co-Employment Model

When a business partners with a PEO, it enters into what’s called a co-employment agreement. This structure doesn’t change who manages the business — you retain full control over hiring, firing, and daily operations. Instead, the PEO becomes the employer of record for certain administrative functions, such as payroll, benefits administration, and tax filings.

This shared structure allows the PEO to provide access to benefits programs and compliance support, while you stay focused on leading your team and growing your business.

What PEOs Actually Do

Here’s what lands on the PEO’s plate:

• Payroll & Taxes: Running payroll, withholding taxes, filing W-2s, and helping businesses remain compliant with IRS deadlines.
  
  
• HR & Compliance: Writing handbooks, providing guidance on employment laws, assisting with employee relations, and helping businesses avoid common legal headaches.
  
  
• Employee Benefits: Providing access to high-quality health insurance, retirement plans, and other benefits that small businesses may not be able to access on their own.
  
  
• Workers’ Comp & Safety: Covering workers’ comp through established programs, handling claims, and supporting efforts to reduce job-site risks.
  
  
• HR Tech & Training: Providing HR software, time tracking, onboarding systems, and sometimes even employee development programs.

That’s the standard package, but many PEOs (including BBSI) go even further. We offer business consulting, recruiting support, and strategic advice that small businesses wouldn’t normally have access to.

How PEO Solutions Benefit Small Businesses

For small business owners, time and money are the two things they never have enough of. PEO solutions directly tackle both, while also solving the headache of staying on top of rules and keeping employees happy:

• Cost Savings: Access to affordable health benefits, competitive workers’ comp coverage, and fewer fines from missteps in employment law compliance.
• Time Back: Owners spend less time on payroll, HR paperwork, or benefits admin and more time running the business.
• Reduced Risk: PEOs keep up with changing employment laws and support companies in avoiding penalties and lawsuits.
• Better Benefits: High-quality health insurance, retirement plans, and perks that make it easier to recruit and retain talent.
• Growth & Stability: Research shows companies using PEOs grow faster, have lower turnover, and are less likely to fail than those going it alone.

Why It Works

PEOs cut out hidden costs like the hours managers waste fixing payroll mistakes or the churn caused by employees leaving for jobs with better benefits. They also bring expertise that small businesses can’t afford in-house, whether that’s an HR pro writing policies or a safety expert lowering workplace risk.

In fact, studies have found that small businesses in PEO arrangements grow 7–9% faster, have employee turnover rates 10–14% lower, and are about 50% less likely to go out of business compared to their peers.

At the end of the day, a PEO doesn’t just make things easier. It gives small businesses the tools and backing they need to compete with larger companies without burning out or falling behind.

Why Referral Partners Should Care About PEO Solutions

PEOs aren’t just a lifeline for small businesses. They’re also a big opportunity for the people those small businesses already trust: you. 

Whether you’re a broker, CPA, or consultant, recommending the right PEO solution can make you look like a rockstar, keep your clients around longer, and even pad your bottom line:

• Instant Value-Add: Connecting clients to HR support makes you look like more than just “the insurance guy” or “the tax person.” You become the one-stop advisor who solves headaches they didn’t even know you could touch.
• Stickier Client Relationships: When your client’s business runs smoother because of your referral, guess who gets the credit? You. That kind of loyalty is hard to steal.
• Revenue Potential: Many PEOs (including BBSI) offer referral programs with ongoing commissions. That can mean passive income for as long as your client stays with the PEO.
• Shared Growth: As your client scales with less HR stress, they’ll need more from you, too. Bigger policies, more accounting work, deeper strategy. Everyone wins.

Why This Matters

The truth is, your clients are probably already being pitched PEO services by competitors who’d love to wedge themselves between you and your book of business. If you don’t bring the solution to the table, someone else will. 

Done right, partnering with a PEO is a growth strategy. You expand the value you deliver without adding more work to your plate. The PEO handles the HR grind; you get to stand back and say, “See? That’s why you stick with me.”

At the end of the day, referral partners who embrace PEO solutions aren’t just selling insurance, crunching numbers, or offering compliance advice. They’re future-proofing their role as trusted advisors and turning referrals into long-term wins.

Choosing the Right PEO Partner (Why BBSI Stands Out)

Not all PEOs are created equal. Some look great on paper but treat brokers as competition, not partners. Others overpromise and underdeliver, leaving you scrambling to fix the client relationship. If you’re going to put your reputation on the line by recommending a PEO, you need to know they’ll show up for both you and your clients.

So what should you look for?

• Partnership-first approach: Does the PEO respect your client relationship, or are they trying to wedge you out?
  
  
• Proven client retention: If they can’t keep businesses happy, your referral will eventually reflect poorly on you.
  
  
• Dedicated support teams: Cookie-cutter hotlines don’t cut it. Clients need hands-on help.
  
  
• Financial stability & credibility: A solid PEO should have staying power and the track record to prove it.

That’s where BBSI separates itself from the pack.

Case in Point

It’s one thing to speak abstractly about the benefits a PEO like BBSI can offer, but real results are what matter. Take 360 Risk Partners, a workers’ comp–focused brokerage in Sacramento, as our case in point. 

They’ve partnered with BBSI for over a decade and hit more than 90% mutual client retention. Why? Because BBSI delivered consistent, hands-on support for its high-risk clients and positioned itself as a preferred local PEO rather than just another vendor. For 360, that translated into happier clients and a stronger book of business. That’s real proof that BBSI doesn’t just support businesses, but also the advisors behind them.

Why BBSI’s PEO Solutions Are the Right Partnership

PEO solutions are about giving small businesses the tools to thrive, and giving referral partners the chance to strengthen their client relationships while building new revenue streams. We’ve covered what PEOs do, why they matter to small business owners, and why they’re a smart play for brokers, CPAs, and advisors who want to protect and grow their book of business.

BBSI takes that one step further.

With a proven track record, hands-on local teams, and a partnership-first approach, BBSI delivers PEO solutions that work for your clients and for you. Ready to explore what a true referral partnership looks like? Contact your local BBSI representative today and start building a collaboration that helps everyone grow.