As growth companies evolve, many outgrow the one-size-fits-all model of Professional Employer Organizations (PEOs). If you’re at this inflection point, you’re not alone, and you’re not without support.
Leaving a PEO is a strategic move that gives your business greater autonomy and flexibility. But one area that causes concern for many leaders is how to manage benefits after leaving a PEO. At EmphasisHR, we guide businesses through this transition every day, specifically those making the move to the Paylocity platform, where we provide specialized, hands-on support.
This blog walks you through what you need to know to successfully manage benefits after exiting a PEO, and how EmphasisHR can help every step of the way.
What Happens to Your Benefits When You Leave a PEO?
When your company exits a PEO, you’re essentially taking back control of several HR responsibilities, including employee benefits. The benefits previously provided under the PEO’s master policy will no longer be available. You’ll need to:
- Secure your own benefits plans (medical, dental, vision, etc.)
- Manage compliance with state and federal regulations
- Administer benefits enrollment, deductions, and reporting
- Communicate plan changes effectively to your employees
This is where planning ahead and having a knowledgeable partner like EmphasisHR becomes critical.
Why Companies Choose to Leave Their PEO
Businesses typically leave PEOs when they:
- Grow beyond PEO pricing efficiencies
- Require more flexibility in plan design
- Want direct relationships with carriers and brokers
- Need clearer cost breakdowns and budget control
- Are looking for deeper integration with platforms like Paylocity
These reasons often signal a company’s readiness for greater independence, and a more strategic approach to HR and benefits.
Steps to Manage Benefits After Leaving a PEO
1. Evaluate Your Current Benefits and Gaps
Start by reviewing what benefits you had under the PEO and what your employees value most. Identify gaps and opportunities to enhance your offerings now that you’re no longer tied to a standardized plan.
2. Select a New Broker or Partner
Choosing the right benefits broker is critical. You’ll need someone who can shop plans, negotiate with carriers, and guide you toward competitive packages that reflect your workforce’s needs.
We work with trusted brokers or your broker of choice to build tailored benefits strategies. And because we’re not a PEO, we don’t restrict your options, we expand them.
3. Use Paylocity to Your Advantage
Now that you’re managing your own benefits, you need a system that can support everything from enrollment to ACA tracking. That’s where Paylocity comes in.
We are mutually exclusive to the Paylocity platform. That means we don’t just use Paylocity, we’re experts in it. We help clients fully leverage its capabilities to streamline benefits administration, manage compliance, and ensure a smooth experience for both HR teams and employees.
4. Communicate the Change Effectively
Employees need to understand what’s changing, why it’s happening, and how it affects them. Clear communication is key to retaining trust and minimizing confusion.
We provide templated communications, timelines, and enrollment guides to help you get ahead of questions and keep your workforce informed and engaged.
5. Stay Compliant
From COBRA to ERISA, there’s no shortage of regulations to manage post-PEO. We ensure you stay compliant from day one. We handle the heavy lifting so you can focus on running your business, not navigating red tape.
Why Work with EmphasisHR
We specialize in helping growth companies on the Paylocity platform navigate life after a PEO. Our team brings deep HR outsourcing experience, Paylocity expertise, and a personal approach to benefits management.
You don’t have to go it alone, and you shouldn’t. Let us manage the details so you can keep building your business.
Let’s Talk Benefits
Thinking about leaving your PEO, or already in transition? The earlier you plan your benefits strategy, the smoother the handoff.
📅 Schedule a free consultation with our HR experts today. Let’s make sure your benefits strategy supports your next stage of growth.
