Written By:  Dino Miliotis, American Business Services, Inc

Is using a PEO a smart move for your moving company? This article provides a good introduction to PEOs and the advantages and disadvantages of using PEOs to hire workers.

Meeting your company’s human resource needs can be an overwhelming task. In addition to administrating your business’ payroll and benefits package, small business owners are also expected to remain current on the ever-changing complexities of payroll tax withholdings, workers’ compensation insurance, health insurance plans, and other benefits.

Some moving companies have opted to meet their human resource demands by enlisting the services of a PEO, or Professional Employer Organization. The primary reason PEO’s exist is to provide employee-related services for owners of small to medium businesses. This can be a valuable service for business owners, especially for the owners of small moving companies who struggle to find the time to adequately cover their companies’ human resource needs.

Instead of employing people directly, you and your employee become legal employees of the PEO. You retain all the functions an employer in terms of hiring employees, setting wages, etc. However the PEO handles everything else including payroll, benefits administration, workers’ compensation, health insurance, and retirement accounts. All you have to do is write lump sum checks to the PEO covering all your payroll expenses and an additional fee for the PEO itself.

PEO’s might be a smart move for your business. Then again, they might not. Here’s a quick rundown of the advantages of PEO’s so you can make an informed decision:


The advantages of PEO’s are somewhat obvious. You no longer have to deal with human resources issues directly. That means you can say goodbye to the days of maintaining payroll records, negotiating health insurance plans, and mediating workers’ compensation claims. This frees up time for you and your office staff to concentrate on growing your moving company – which is why you became a small business owner in the first place.

Another advantage of PEO’s is their size. Often, PEO’s are able to negotiate better deals for health insurance and other benefits because of the volume of business they offer.   This can be a huge cost savings for a moving company in the area of workers compensation premiums.  The PEO’S size also leads to economies of scale in human resource staffing. Your savings comes in the money you save by not having to staff human resources in-house.

To learn more about PEO’s, check with your general liability insurance agent or workers compensation insurance agent.  They often have a contact for a PEO in your area.  Otherwise check the internet for PEO’s.  Set up some interviews, do cost studies, and see if a PEO is the right choice for your moving company.

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