Tag Archives: payroll deductions

How many employees do I need to be considered by a PEO (professional employer organization)?

Easy…one…but it cannot be the owner of a sole proprietorship (you can’t lease back yourself).  That said, most PEO’s are looking for 10 plus employees, and I have seen companies with more than 5,000 using PEO successfully.

If your company has less than 10 employees, the likelihood is that you will use the PEO for hr, payroll, benefits admin and safety.  However, the health plan will probably be carved out in put in your name, although the PEO should administer it for you, making necessary payroll deductions.