Controls costs
Saves time and paperwork hassles
Provides professional compliance (e.g., payroll, IRCA, EEOC)
Reduces turnover and attracts better employees
Claims management (e.g., workers' compensation, unemployment insurance)
Provides better benefits packages
Provides professional human resource services (e.g., employee handbooks, forms, policies and procedures)
Reduces accounting costs

Comprehensive benefits previously unavailable
Better employer/employee communications
Payroll on-time and accurate
Professional assistance with employment-related problems
Professional orientation and employee handbook
Extends statutory protection to more employees
Up-to-date information on labor regulations and workers' rights, work site safety
Efficient & responsive claims processing
Portable benefits (employees can move from one PEO client to another without loss of eligibility for benefits)

Consolidates several small companies' employment tax filings into one
More professional preparation and reporting
Accelerated collection of taxes
Extends medical benefits to more workers
Expands the communication of government requirements and changes to small businesses
Resolves many problems before they reach court
Allows government agencies to reach business through a single-employer entity