As your business grows, managing payroll, human resources, benefits, and compliance can quickly become overwhelming. That’s where outsourcing solutions like Payroll Services and a Professional Employer Organization (PEO) come in.

Both options are designed to help employers streamline operations, reduce risk, and save time—but they are not the same. Understanding the difference between Payroll and PEO services can help you choose the solution that best fits your business needs.

At Key HR, we offer both Payroll and PEO solutions, each tailored to support your organization efficiently and cost-effectively.

What Is a Professional Employer Organization (PEO)?

A Professional Employer Organization (PEO) partners with your business through a co-employment relationship. This means Key HR shares certain employer responsibilities while you maintain full control over day-to-day operations and employee management.

Through the PEO model, Key HR assumes specific employer-related risks and administrative burdens, allowing you to focus on running and growing your business.

Payroll Solutions: Outsourcing Without Co-Employment

If you’re looking for expert support without entering a co-employment relationship, the Key HR Payroll Solution may be the right fit.

Our Payroll services provide the same high level of dedicated support as our PEO offering—but without sharing employer status. You remain the sole employer while we manage payroll administration accurately and efficiently.

Key HR Payroll Services Include:

• Payroll processing
• Tax calculations
• Wage garnishments, tax liens, and required deductions
• W-2 preparation
• Federal, state, and local tax deposits and filings

This solution is ideal for businesses that want reliable payroll support while retaining full responsibility for HR, benefits, and workers’ compensation.

PEO Solutions: Comprehensive Support & Shared Responsibility

The Key HR PEO Solution offers a more comprehensive approach by combining payroll, benefits, HR, risk management, and workers’ compensation under one streamlined partnership.

Payroll Services:

• Payroll processing
• Wage garnishments, tax liens, and required deductions
• W-2 preparation
• Federal, state, and local tax deposits and filings
• Tax calculations

Employee Benefits:

Gain access to competitive, large-group benefits typically reserved for bigger organizations, including:

• Major medical health plans
• Dental and vision coverage
• Prescription card programs
• Disability and life insurance
• Section 125 tax plans
• 401(k) retirement plans
• Full administration of employee benefits packages

Workers’ Compensation:

Key HR helps eliminate:

• Surcharges
• Premium deposits
• Audits
• Modifiers and down payments

Our goal is to lower your overall workers’ compensation costs across all facets of coverage.

Human Resources:

Key HR provides continuous updates and guidance to help maintain compliance with:

• State and federal employment laws
• Regulations, ordinances, directives, and rules

Risk Management:

Our experienced Risk Management Directors and Managers work proactively to reduce the true cost of risk, helping protect your business from costly claims and compliance issues.

Payroll or PEO: How Do You Choose?

• Choose Payroll Services if you want payroll handled professionally but prefer to manage HR, benefits, and workers’ compensation internally.
• Choose a PEO Solution if you want a full-service partnership that reduces administrative burden, enhances employee benefits, and helps manage compliance and risk.

Let Key HR Help You Decide

Every business is different, and the right solution depends on your goals, size, and internal resources. Whether you need streamlined payroll support or a full-service PEO partnership, Key HR is here to help.

📞 Contact Key HR today to learn which solution is the best fit for your business—and let us simplify the way you manage your workforce.