ChampionPEO v. Payroll-only

Is a PEO (Professional Employer Organization) or PSP (Payroll Services Provider) better for your business? Knowing the difference is key!

To determine which one is right for you, it’s important to identify what services each type of company provides. Armed with that knowledge, you can compare the pros and cons of each and compare them to your own business goals and objectives.

You may be hoping to save time and avoid the hassle associated with calculating payroll, cutting checks and quarterly reporting – and a payroll service can certainly help with that. But what if you could also get out from under all the liability and hassle of recruiting, compliance and benefits administration?

What if you could accomplish those goals and cut your employee-related costs at the same time?


PSPs typically handle all the functions related to paying your employees and paying federal payroll taxes. The employer retains ALL liability. That is key to know if you don’t mind assuming all responsibility if something isn’t paid or incorrectly submitted.

Many PSPs also offer a more robust suite of services, usually under the title of administrative services organization or ASO. In an ASO scenario, the company provides ancillary services that might include safety training and general HR Some companies will provide benefits administration although, in that case, the PSP or ASO does not carry the policy themselves. That remains the responsibility and liability of the employer.


We do everything that PSPs do and much more. In fact, PEOs handle every aspect of HR management along with the liability that comes with it.

In addition to handling every aspect of payroll & tax administration, ChampionPEO takes care of recruiting, employee benefits administration, and regulatory & governmental compliance. We also, handle tasks such as electronic onboarding and employment verifications which can include background checks. But ChampionPEO does more than simply provide a suite of services.

ChampionPEO acts as your co-employer. Although you retain FULL control of your staff and oversee their daily activities, ChampionPEO takes on the liability and all HR-related risks, including the handling of unemployment claims and legal issues that may arise from being an employer in America. We also provide all workers’ compensation insurance and health benefits, carrying the policy ourselves so you never have to sit through end-of-year audits or lump-sum payments during policy renewal.

As a PEO, we provide both workers’ comp and health benefits at a much lower rate than an individual employer can obtain – especially for small- to medium-sized businesses – because they have such a large pool of employees.

Along with our HR and Compliance services that we provide to our clients, ChampionPEO has an in-house law firm that can help council, guide, intervene and even litigate any business-related legal issues that may arise for our employers.

So, PEO or PSP?

Though there is a price difference between these two types of vendors, it is nearly impossible to make a decision based solely on dollars and cents. The way we see it at ChampionPEO is by looking at the mindset of an employer. Are you a “Reactive Employer’ or a “Proactive Employer”?

Payroll Service Only vendors treat their employers as numbers, not co-employers. Therefore, their customers are put in a “reactive” rather than a “proactive” position. This is due to the lack of luster when it comes to services and liability retention. The employer must still hold all liability and responsibility when going for the cheaper more economical PSP vendor.

By choosing ChampionPEO, employers are now in a proactive position by transferring the responsibility and liability of their back-office to us freeing them up to focus on growing their business rather than trying to keep it open and compliant.

ChampionPEO thrives on the success of it’s clientele. Therefore, we WANT to see your business grow. By choosing us, we will work to increase your profitability, transfer your liability, and ultimately lower your labor costs across the board.

Still not convinced?

Give our Business Development Department a call today for a free no-obligation Business Analysis & Solution Proposal. 313-67-CHAMP (24267)

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