ADP spells PEO

ADP PEOAccording to ADP, 69% of those companies that had moved their Human Resources administration out of
the house were happy with the results. ADP, the one-time payroll administrator for big name and big sized employers, has developed the model co-employment PEO deal with its ADP TotalSource®.
Traditional Model

The Professional Employer Organization (PEO) concept includes certain characteristics:

You manage your employees on a day-to-day basis.

The PEO handles the HR management/benefits administration.

  • Manage payroll, benefits, and workers’ comp.
  • Negotiate health insurance from a high volume position.
  • Provide IT system for HR management.
  • Train employees.

You basically share risks and responsibilities with the co-employer. You do not face risk or threats alone. You share compliance issues, such as changes in employee-related laws and regulations. For instance, they take care of your worries about Healthcare Reform, so you avoid the mistakes that come from trying to get your hands on this big complex issue.


Futures Model

  • What the ADP TotalSource® model does is integrate your major Human Resources administrative and employee benefits functions into a single solution. In doing so, it produces efficiency, savings, and peace of mind.
  • Share responsibilities with a qualified authority on employee risk.
  • Partner with a trusted HR professional dedicated to helping you actively manage your employees.
  • Make the right business decisions during open enrollment.
  • Optimize employee services and benefits thanks to economy of scale.


  • The PEO will find and hire the right people through experienced talent management and employee leasing tools.
  • ADP is still the world leader in payroll services, uniquely positioned to manage payroll, tax withholding, and other related services.
  • ADP TotalSource® has access to Fortune 500 benefits, 401(k) Retirement Savings Plans, full plan administration, and other employee benefits.
  • ADP TotalSource® monitors changes in the regulations that govern employee benefit plans so you can stay compliant with current laws.
  • Employees can access pay statements, benefits summaries, and related data through mobile devices.
  • Develop and manage talent through training options.
  • Manage and improve risk, safety, and employee morale.
  • Terminate employees with confidence and low exposure to risk.

Once HR is relieved of this base administrative work, the HR leadership is free to grow, manage talent, and pursue strategic HR solutions.