PEO Audit
A Free, Line-by-Line Review of the PEO You Already Have
You don’t need to be unhappy to want a second opinion. I’ll tell you what you’re actually paying for, how it compares to the market, and whether it’s worth changing anything.
Step 1
Send Me Your Invoice and Agreement
That’s the whole ask. A recent invoice and your service agreement tell me most of what I need — headcount, class codes, admin fee structure, benefit lines, and the terms you agreed to.
You don’t have to tell your PEO you’re doing this. Nothing changes on your account and nobody calls you. This is a read, not a move.
“You don’t have to tell your PEO you’re doing this. It’s a read, not a move.”
“Most invoices bundle three or four different charges into one line. Separating them is where the surprises live.”
Step 2
I Unbundle It
I come from bookkeeping and financial analysis, so this is the part I actually enjoy. I separate the administrative fee from workers’ comp, benefits, and any pass-through costs, then check each against what the market charges a business your size in your industry.
This is where hidden fees show up — comp spreads, admin markups folded into benefit rates, charges that were quoted as one number and billed as another.
Step 3
You Get a Straight Answer — Including “Stay Put”
Sometimes the answer is that you’re in a good deal and should leave it alone. I say that often enough that it should probably worry me commercially, but it’s the only version of this that’s worth anything.
When there is room, you’ll know exactly where and roughly how much. From there you can renegotiate with your current provider — which often works — or I can run a proper switch. Your call, no pressure either way.
“Sometimes the answer is that you’re in a good deal and should leave it alone.”
When an audit is worth doing
You don’t need a reason, but these are the moments it usually pays off:
- Renewal just landed — especially with an increase nobody explained. See why auto-renewing costs you.
- Your headcount changed meaningfully — pricing tiers move, and your rate may not have moved with them
- Your PEO changed carriers or networks — what to demand in writing when that happens
- You’ve been with the same provider 3+ years — loyalty is rarely priced in your favor
- Service has slipped — cost isn’t the only thing worth auditing
Want a second opinion on your PEO?
Send over an invoice and I’ll tell you what I see. Free, confidential, and no obligation to change anything.
PEO Audit FAQs
What is a PEO audit?
A line-by-line review of your existing PEO invoice and service agreement to determine what you are actually paying for. It separates the administrative fee from workers’ compensation, benefits, and pass-through costs, then benchmarks each against market rates for a business of your size and industry.
Does a PEO audit cost anything?
No. It is free, including the recommendation to stay put if that is the right answer. PEOs pay me a standard commission — frequently out of the same budget they’d otherwise spend on their own internal rep. It works the way a commercial insurance broker gets paid: the provider pays, not you, and using a broker doesn’t raise your price. What keeps the advice straight is that I place with many PEOs rather than one or two, so no single provider is worth steering you toward.
Will my PEO find out I had my contract reviewed?
No. An audit is a document review. Nothing changes on your account and nobody contacts your provider unless you ask. Many businesses use the findings to renegotiate with their existing PEO rather than switch.
What documents do I need for a PEO audit?
A recent invoice and your service agreement are usually enough. Those show headcount, class codes, admin fee structure, benefit lines, and contract terms. A benefits summary or renewal letter helps but is not required.
How long does a PEO audit take?
Once I have your documents and we’ve confirmed nothing is missing, you’ll have my read in 5–7 business days. Most of that time is benchmarking your rates against what comparable businesses are actually paying — that part is worth doing properly rather than quickly.
How often should I review my PEO arrangement?
At minimum once a year at renewal, and any time headcount changes significantly, your PEO changes carriers, or service slips. Increases compound quietly year over year when nobody is checking. Here is how to do one yourself.