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What PEOs Don’t Want You To Know



This White Paper is designed to be an abbreviated description of PEOs with a focus on what they are not likely to disclose. If you are currently in a PEO we have synthesized this into a checklist for you to audit your administrator. If you are trying to get out of PEO we have also synthesized this into a checklist of what you need to do to develop a functional exit strategy.

This report is not intended as an attack on PEOs. It is intended as a set of tools to help you with an understanding of the larger picture of PEOs. Let me be clear about this. PEOs have their place; and like everything else there are good and bad ones. The amount of control, however, that a business owner grants to a PEO provides ample avenues of abuse – financial, litigious, and upon employees. With your local broker, agent, or advisor out of the big picture, you alone must be vigilant and keep an eye on your PEO. The temptation for financial abuse with PEOs is most evident in the litany of business disasters caused by PEOs and published by the news media. A collection of articles is available upon request.

If you are one who has been abused then rest assured that you are not the first to go through this. We have helped many employers put their business back in order. If you need to audit your PEO or terminate it, we suggest you assemble a team of local professionals that you trust and/or are comfortable with. Unlike the PEO, having a team of independent professionals gives you flexibility – if one doesn’t work out you can replace them with little disruption.



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