Hard question to answer with anything other than “Maybe you don’t!”
Our staff can spend a lot of time telling you why you should have a PEO, and you can probably find some of that on other parts of this site. For fun though, and maybe for educational purposes, we asked them, “When DON’T you need a PEO?” Well they tossed it around the bullpen and surprise surprise, they came up with at least 7 scenarios when a PEO is not called for.
Here’s some situations they gave us when you DON’T need a PEO:
- 1: You don’t have any employees
- 2: You have employees but they cause no problems and create no risks
- 3: You are a government entity who cannot be sued
- 4: You are a very large company with an internal legal and HR department
- 5: You are a very large company with annual workers’ comp premiums in excess of $250,000. (In this case you should have your own, custom comp solution, such as a captive or a self funded plan. Ask us about that)
- 6: You are a short term company, not likely to be around for a while
- 7: You will never want to sell your company, or facilitate an easy ownership transfer
Can you think of some others? Please let us know!