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PEO Extraction

Once an organization reaches a specific headcount, reliance upon a Professional Employer Organization (PEO) no longer makes economic sense. However, many businesses may be reluctant to make the transition to an unbundled solution due to the significant challenges and time spend that it can take to exit a PEO partnership and implement a new solution.

Sometimes being with a PEO is no longer the best fit, but how do you make sure things go smoothly?

When you have employees in multiple states, is your PEO treating each state’s taxes differently or the same. Are you thinking of leaving mid-year, and how does this impact payroll taxes? Are there penalties for leaving before your contract ends?

These are just some of the pieces that can be costly both in time and financially. When you choose to leave a PEO, you want to make sure there are no interruptions to you or your employees. It is essential to know how deductibles, retirement benefits, and taxes will be handled in the transition. The iBenefitsHR team can help you avoid potential pitfalls and identify a strategy to put in place for your new direction.

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