What a PEO broker or advisor does, how brokers are paid, the benefits and limits of using one, how to evaluate a broker and how to run a PEO search with or without help.
| Model | How it works | What to ask |
|---|---|---|
| Commission from the PEO | The PEO pays the broker, often a share of its admin fee | Is the commission the same across the PEOs you show us? |
| Client-paid fee | You pay the broker directly, flat or hourly | Do you also receive commissions? |
| Hybrid | A reduced fee plus commission | How do the two interact? |
Commission-based brokers are not free; their pay is usually built into your PEO pricing. That is not a problem in itself, but you should know about it and confirm it does not steer recommendations.
See how EZTime works for your industry, from time tracking to shift scheduling.
Use our PEO cost calculator and pricing guide to sanity-check quotes.
Allow at least two to three months from first conversation to first payroll. A typical search spends two to four weeks gathering data and quotes, a few weeks comparing and negotiating, and several weeks on implementation, including benefits enrollment and payroll setup. If your benefits renew on a fixed date, work backward from it, because a rushed decision is where brokers and PEOs have the most leverage.
Whether you work with a broker or go direct, PEOs need data to quote accurately: an employee census with roles, states, wages and hours, current benefits plans and rates, workers’ comp classifications and claims history, and any recent payroll tax issues. Share only what is needed and use secure file transfer, since census files contain personal information. Accurate hours and pay data by role also help PEOs price workers’ comp and benefits more precisely.
The relationship should not end at signature. A good broker checks in after the first payroll to make sure the setup is right, helps resolve escalations if the PEO’s service slips and reviews your renewal each year against the market. Put those expectations in writing, including how quickly the broker will respond and what happens if you want to switch PEOs later. If the broker disappears after implementation, factor that into whether you use them again.
| Adviser | Typical role |
|---|---|
| PEO broker | Compares PEOs, gathers quotes, negotiates terms |
| Benefits broker | Advises on health and other benefits, including whether to buy them outside a PEO |
| Accountant | Reviews tax implications, payroll costs and financial impact |
| Employment attorney | Reviews the client service agreement and compliance questions |
For larger decisions, you may use several of these. Make sure each knows what the others are advising.
A 90-employee home services company in three states has a benefits renewal in eight weeks and no HR manager. The owner hires a commission-based PEO broker who discloses the commission for each PEO, gathers four comparable quotes and negotiates a lower admin fee and a shorter contract. The owner still checks references directly and has an attorney review the final agreement.
EZTime is not a PEO or broker. It helps with the data you need during and after a PEO search: accurate hours by employee and role from mobile, kiosk or NFC clock-in, job and client tagging, PTO balances and reports in PDF and Excel.
An adviser who helps businesses compare PEOs, gather quotes and negotiate terms.
Many are paid by commission from the PEO, built into your pricing. Some charge a fee. Ask for disclosure.
Often for multi-state or complex businesses with little in-house HR capacity. Less so for very simple cases.
Yes. Many businesses run their own search, especially when they already know which PEOs to compare.
Usually an employee census, current benefits, workers’ comp information and payroll details.
Ideally yes, for renewals and service issues. Ask what they commit to.
With jobs and clients tagged in EZTime, you can compare what you quoted with the hours the work really took. There is a $20 monthly minimum; above that, plans start at $2 per employee.