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Why Should a Nonprofit Work with a PEO?

6 min read

Nonprofit organizations are super important to society because they provide essential services and support to those who need them. However, managing a nonprofit can be tough, especially when it comes to managing employees. Human resources management can be especially daunting for nonprofit leaders who have limited resources and wear many different hats. One possible solution to this problem is working with a professional employer organization.

A PEO company provides comprehensive HR services to all kinds of businesses, including nonprofits. Here are a few reasons why nonprofits might want to consider working with a PEO:

Cost Savings

One of the main reasons to work with a PEO is cost savings. Since they have a big pool of employees from lots of different organizations, they can negotiate better rates for employee benefits like health insurance, retirement plans, and workers’ compensation insurance. By working with a PEO, nonprofits can benefit from these lower rates and save money on these super important benefits.

HR Expertise

PEOs offer nonprofits access to experienced HR professionals. They can manage various HR-related tasks such as payroll administration, benefits administration and compliance.

Expertise like this can benefit nonprofits. They may lack the resources or knowledge to do so independently. Therefore, outside help can be very useful. By outsourcing HR functions to a PEO, nonprofits can focus on their core mission and leave the HR stuff to the experts.

Legal Compliance

Nonprofits have to comply with all kinds of federal, state, and local employment laws, which can be tricky and time-consuming. PEOs have a team of HR professionals who stay up to date on the latest employment laws and regulations. By working with a PEO, nonprofits can make sure they’re in compliance with all the applicable employment laws, which can help avoid legal issues and potential fines.

Reduced Administrative Burden

Nonprofits often have limited resources, and managing HR functions can be a real time suck. Working with a PEO can help reduce the administrative burden on nonprofit staff by outsourcing HR functions like payroll processing, benefits administration, and compliance to the PEO. This can free up staff time and resources, allowing them to focus on the organization’s core mission.

Employee Retention and Satisfaction

PEOs can also provide employee benefits that nonprofits might not be able to provide on their own. This can lead to increased employee satisfaction and retention, which is really important for nonprofits. By offering comprehensive benefits packages, nonprofits can attract and keep top talent, which is essential for the organization’s success.

What services can a PEO provide for a nonprofit?

A PEO provides a bunch of different services for a nonprofit organization, including:

Payroll and Tax Administration: PEOs can take care of payroll processing and make sure payroll taxes are calculated, deducted, and remitted on time.

Employee Benefits Administration: PEOs can provide access to employee benefits like health insurance, retirement plans, and other perks that can help attract and retain employees.

Human Resources Management: PEOs can help with recruiting, hiring, onboarding, training, performance management, and compliance with employment laws and regulations.

Risk Management: PEOs can help nonprofits manage risks associated with employment practices liability, workers’ compensation, and other liability issues.

Compliance Assistance: PEOs can help nonprofits stay compliant with federal, state, and local employment laws and regulations.

Time and Attendance Tracking: PEOs can provide time and attendance tracking systems that can help manage employee schedules, attendance, and time off.

Employee Support: PEOs can provide employee support services like employee assistance programs, wellness programs, and other resources that can improve employee morale and productivity.

Best PEOs for Nonprofit Organizations

If you’re looking for a PEO for your nonprofit organization, there are a few great options out there to choose from. Let’s take a look at some of the best ones:

ADP TotalSource: This PEO offers a whole bunch of HR services for nonprofits, like taking care of payroll, employee benefits, and risk management.

Insperity: If you need HR and admin services for your nonprofit, Insperity has got you covered. They can help with payroll, employee benefits, and making sure you’re following all the necessary regulations.

TriNet: TriNet’s HR solutions can help with things like payroll, employee benefits, and compliance support for nonprofits.

Justworks: Looking for a suite of HR, benefits, and payroll solutions for your nonprofit? Justworks might be the perfect fit for you! They can help you out with healthcare benefits, retirement plans, and compliance support.

Gusto: Another great option for payroll and benefits solutions is Gusto. They can help you out with things like health insurance, 401(k) plans, and making sure you’re staying compliant with regulations.

Keep in mind that the best PEO for your nonprofit will depend on your specific needs, so it’s a good idea to check out a few different options and compare their services and pricing before making a decision.

Simplify Your Business with 

At, we understand that choosing the right PEO can be a daunting task. That’s why we’re here to help. We provide educational materials and access to PEO partners to help you make informed decisions for your business. We’re committed to making the process simpler for you so that you can focus on what you do best.

When you work with us, you’ll have access to a wide network of PEO partners. Our partners are vetted and chosen for their expertise and experience in working with businesses like yours. We’ll help you find the ideal PEO that meets your business needs and budget.

Getting started is easy. Simply connect with our team and let us know what you’re looking for. We’ll provide you with a range of options and competitive pricing within 24-72 hours. Our team is here to answer any questions you may have and help you make the best decision for your business.

We believe in transparency and honesty in our dealings with our clients. That’s why we provide all the information you need to make an informed decision about your PEO options. We want you to have the best possible experience working with a PEO, and we’re committed to helping you achieve that.

If you’re a business owner needing help managing employees, a PEO may be the right solution. At, we’re here to make the process simpler and help you find the ideal PEO partner for your business. Get in touch with us today, and let us help you transform your business!

Ready to take your business to the next level?

Contact us today to learn more about how we can help you achieve your goals.

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