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Pros and Cons of Professional Employer Organizations (PEOs) Why a “Virtual PEO” May be the Better Option

Emerson Consulting Group

S uch an arrangement allows the employer-member to outsource many of the administrative functions to third parties, rather than carrying the full burden all by itself. The PEO claim is that a larger group creates administrative efficiency, greater negotiating “heft,” which thus lowers the costs of a smaller group.