• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

MidwestHR

My WordPress Blog

  • Home
  • Services
    • Employee Benefits
    • HR Outsourcing
    • Payroll and Tax Admin
    • Workers Compensation
    • Retirement Services
  • About
    • Company Info
    • Leadership
    • Why We Are Different
    • What is a PEO?
    • Midwesthr Gives Back
    • Scholarship Award
  • Blog
  • Contact Us
  • Login
    • Client Login
    • Employee Login

Blog · Published: November 28, 2016 Updated: January 12, 2022

What Does Your Company Need: PEO or Health Insurance Broker?

What Does Your Company Need: PEO or Health Insurance Broker?With a handful of employees, small companies tend to manage human resources in-house. New legislation, however, is making that harder to do. With the Affordable Care Act (ACA), FLSA overtime regulations and state specific mandates like the Illinois Secure Choice Savings Program Act, employers must manage major shifts in HR requirements to remain compliant. With increasing demands, it may be time to get expert help. Learn about the differences between a PEO (professional employer organization) and a health insurance broker.

PEOs offer full service HR outsourcing

  • Team of HR experts with various specialties
  • Offer diverse coverage options including voluntary benefits such as vision, dental, life, ST and LT disability
  • Clients often are pooled with other clients to create buying power
  • Access to traditional and “out of box” health insurance solutions not widely offered by health insurance brokers
  • Guidance on state and national legislation to ensure compliance
  • 401K options without fiduciary responsibility and administrative tasks
  • Payroll service includes tax-related responsibilities and resolving any IRS or state inquiries
  • Workers compensation packages suited to industry classification
  • Fees: per employee monthly fee (varies by PEO)

 

Health Insurance Brokers provide insurance expertise

  • Offer limited coverage options because licensed to sell certain plans. Clients may need multiple resources to get full suite of coverage
  • May not offer voluntary benefits to smaller clients due to carrier restrictions or minimal commission incentive
  • Do not offer HR guidance, 401K, payroll or workers compensation
  • Fees: commission based on plan secured

 
For employers struggling to manage HR, PEOs offer one-stop shopping. Brokers can secure health insurance, but don’t offer other HR related services. Which provides the most valuable benefits for your organization?

If comprehensive HR services are needed, not all PEOs are created equal. MidwestHR, a top PEO in Chicago, boasts a 96% client retention rate by focusing on the needs of the client. Unlike other PEOs, MidwestHR offers customized a la carte services without a long-term contract. That allows clients to only pay for the services needed. With a dedicated HR expert, clients don’t waste time retelling details to call center reps. Call today 630-468-9286 to discuss how we can best help.

Filed Under: Blog

Charmaine Hollaway

Working in the Professional Employer Organization industry since 1993, Charmaine has been involved in almost every aspect of PEO services. In her role as the Managing Director of HR & Benefits at MidwestHR, she oversees all HR compliance and employee benefits in addition to managing retirement plans.

Previous Post: « How Seasonal Employees Affect Your Business
Next Post: Pitfalls for Multi-State Employers to Avoid »

Primary Sidebar

Recent Posts

  • Can HR Software Help Your Company?
  • Top 10 Ways to Prevent Payroll Fraud
  • What are the Pros and Cons of Working With a PEO?
  • MidwestHR Giving Tree Returns for 2021
  • 2022 HR Law Changes and Trends

Footer

Follow US

  • Twitter
  • Facebook
  • LinkedIn
  • Yelp
  • BBB
  • UpCity
  • YP
  • Superpages
  • Clearly Rated

Navigation

  • Home
  • Contact Us
  • Careers
  • What is a PEO?
  • Healthcare Reform
  • Resource Center
  • Coronavirus COVID-19 Resource Center

Woodridge Location

MidwestHR, LLC
1200 Internationale Pkwy
#200
Woodridge, IL 60517
630-468-9286

Loop Location

MidwestHR, LLC
300 N LaSalle Dr
#1865
Chicago, IL 60654
630-468-9286

CPEO - IRS CertifiedNAPEOAudited Financials
*The IRS does not endorse any particular certified professional employer organization. For more information on certified professional employer organizations go to www.irs.gov.
© 2025 · MidwestHR, LLC · Privacy Policy · Terms · SUPPORTING BUSINESSES SINCE 1997