A benefits broker helps you select and renew benefits with direct carriers. A PEO bundles benefits into a master plan covering many clients. The choice between them is really a choice between unbundled (broker) and bundled (PEO) benefits administration.
| PEO | Standalone broker | |
|---|---|---|
| Carrier selection | PEO's master plan carriers (limited choice) | Any carrier you and your broker choose |
| Pricing leverage | Pool pricing — small employers access large-group rates | Your own group's pricing — varies by size |
| Renewal volatility | Pooled — stable but slower to capture improvements | Your own — can swing both directions |
| Workers comp | Bundled into PEO pool | Separate WC arrangement |
| Payroll integration | Bundled | Separate payroll vendor |
PEO wins when: you're under 50 employees and your standalone group quote is expensive; you want bundled simplicity; you want pool pricing access.
Broker wins when: you're 100+ employees and have favorable demographics; you want a specific carrier; you have an established broker relationship.
Below 50 employees, PEO benefits typically beat broker-sourced standalone group pricing. Above 100 employees, broker-sourced benefits become competitive.
PEO wins when: you're under 50 employees and your standalone group quote is expensive; you want bundled simplicity; you want pool pricing access.
Broker wins when: you're 100+ employees and have favorable demographics; you want a specific carrier; you have an established broker relationship.
Below 50 employees, PEO benefits typically beat broker-sourced standalone group pricing. Above 100 employees, broker-sourced benefits become competitive.
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