PEO vs. HRO: Which One is Right for You?

MBA offers two types of relationships with our clients: Professional Employer Organization (PEO) and Human Resources Outsourcing (HRO).

What's the difference?

Professional Employer Organization (PEO)

The PEO arrangement offers support to your business provided through a co-employment relationship. Employees become, for certain purposes, employees of both MBA and your business. You retain sufficient control of all daily employee activities, while MBA is designated as the employer of record for tax paying and workers' compensation insurance purposes. In this relationship, wages and payroll-related taxes are reported and paid under MBA's federal ID number.

  • For you, MBA becomes a strategic HR partner. We help to reduce liability and streamline the employee administration process.
  • For your employees, MBA provides a professional human resource department and assistance in using the employee benefit package that you select.

Human Resources Outsourcing (HRO)

An HRO arrangement is also a close one between you, as the business owner, MBA and your worksite employees; however, MBA does not have an employer relationship with your employees. MBA serves as an HR consultant. You receive administration assistance, but unlike in a PEO arrangement, a co-employment relationship is not established. All insurance products are client based, and employment-related taxes are reported and paid under your business federal ID number.

Which Relationship is the Right One for Your Business?

A comprehensive assessment of your current business practices can outline the areas that would best serve your company's needs and help you determine which relationship is right for you. Contact us today to set up a free consultation.

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