Skip to content
← Back to Blog

Navigating the Transition: How to Leave Your PEO Smoothly

• by EvolvHR Team

Transitioning away from a Professional Employer Organization (PEO) can be daunting, but it also offers the opportunity to take full control of your company’s HR, payroll, and benefits. evolvHR’s comprehensive checklist ensures a smooth and compliant transition.

Why Leave Your PEO?

Businesses often outgrow the limitations of a PEO as they expand. Common reasons for leaving include:

  • Cost inefficiencies compared to in-house HR functions.
  • Desire for greater customization of HR and payroll systems.
  • Concerns over data security and control.

Key Steps for a Successful Transition

1. Prepare Your Payroll

Ensure federal and state tax accounts are established. Align with a new payroll provider to manage historical and future payroll processing.

2. Organize Your HR Department

Request personnel files and performance documentation from the PEO. Set up internal systems for compliance with FMLA, COBRA, and other regulations.

3. Outline Employee Benefits

Establish benefit plans and ensure seamless transitions for health insurance, retirement plans, and workers’ compensation coverage.

4. Keep Up with Compliance

Identify resources for legislative updates and establish internal processes for tracking and reporting.

Why evolvHR?

evolvHR specializes in guiding businesses through HR transitions. With a focus on compliance, customization, and employee satisfaction, our solutions empower leaders to build resilient HR functions.

Take Action Today

Regaining control of your HR functions starts with the right plan. Connect with evolvHR to learn more about managing your transition and optimizing your internal systems.

Partner with evolvHR today to take your HR to the next level.

Ready to Transform Your Employee Benefits Operations?

Encourage business leaders to use evolvHR’s expertise to navigate the complexities of leaving a PEO and setting up internal HR functions.

Contact EvolvHR today to learn how we can help you implement these strategies and build a stronger, more resilient organization.