Can I Keep My Workplace Benefits Plan if I Engage a PEO?

As you probably know, PEOs offer the following benefits: relief from the growing burden of employment administration, improved employment practices, improved workplace compliance, HR assistance, payroll services, risk management, comprehensive employee benefits packages, and so much more!

When it comes to benefits particularly, many companies “win” through the co-employment relationship. By pooling together employees from multiple client companies, PEOs bring forth tremendous purchasing power – often passing along low rates, great options, and additional benefits you may not have previously been able to offer your employees.

But, what if you’re a young and healthy office that already celebrates low health insurance rates? Whatever the PEO is offering you may actually cost more than what you have in place for your employees.

Or, what if your current plan has extremely robust benefits such as vision, dental, and coverage for various specialists? Can you carve out the cost of benefits from a PEO contract and leave your existing plan in place?

All PEOs are different, but in most cases the PEO will consider it and it’s absolutely worth asking. If they are not willing to take employee benefits out of the proposed contract, and you are beyond happy with your existing plans and prices, we recommend that you keep shopping for a PEO.

You don’t need to settle for a PEO contract that isn’t the perfect fit for your unique situation. If you proceed with the PEO’s proposed benefits plan, you may be paying for plans you won’t necessarily utilize or dropping a plan that your employees are really happy with – resulting in employee dissatisfaction.

Please contact Employer Solutions Plus if you’re having trouble finding the perfect PEO. We represent countless PEOs across the country, many of which don’t require signing on to their insurance plan if you’d like to keep your own.