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

For the employee

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

For the government

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