Exiting a PEO – Best Practices for a Smooth Transition

With rising costs, renewal fatigue, and limited flexibility, 2026 is shaping up to be the “Year of the PEO Exit.” Many employers are preparing to transition away from their PEO, but underestimate the complexity involved. From payroll to tax compliance to benefits administration, the risks of a mismanaged exit are significant.

In this session, we’ll outline a step-by-step framework for a successful PEO transition. Attendees will hear best practices for preparing systems and teams, lessons learned from real-world transitions, and practical guidance on reducing compliance risk and avoiding disruptions to employees.

Key Takeaways:

• Red flags that suggest it may be time to exit a PEO.
• How to evaluate and select the right HR and benefits technology during a transition.
• Common implementation pitfalls and how to avoid them.
• Compliance and tax considerations HR leaders often overlook.

Learning Objectives:

1. Recognize the operational and financial indicators that suggest an organization may need to transition away from a PEO.
2. Evaluate HR and benefits technology options to support a smooth and compliant transition.
3. Identify common pitfalls organizations face during PEO exits and outline strategies to avoid them.
4. Apply compliance and tax considerations to reduce risk and ensure continuity during a PEO transition.