In recent months, many Wisconsin businesses with 15 or fewer employees have found themselves being unexpectedly kicked off their Professional Employer Organization (PEO). This has left numerous small companies scrambling for new solutions to manage their human resources, payroll, and benefits. If you’re a Wisconsin business owner facing this challenge, we are here to help you understand why this is happening, what you can do if it happens to you, and how SustainableHR PEO is your ideal solution in this situation.

PEOs have long been a popular choice for small and medium-sized businesses that want to outsource their human resources responsibilities to expert partners. However, several local PEOs are now turning their backs on the very businesses they were meant to support. This change has left a multitude of businesses struggling to understand the reasons behind their dismissal and searching for viable alternatives.

Instances of smaller Wisconsin companies being removed from their PEOs have been traced back to several factors, including regulatory changes, financial instability within the PEO industry, and market shifts that drive these organizations to chase more lucrative clients with larger employee counts. While these reasons may not put your business at fault, they certainly create obstacles that you must overcome to maintain smooth HR operations.

If your business has been affected by this recent development, don’t despair. It’s crucial to take diligent steps in the face of any HR challenge. First, familiarize yourself with the reasons behind the change. This knowledge can help you better understand the situation and decide if you want to continue working with PEOs or explore other HR service options. Then, research and vet alternative providers, considering what value and solutions they offer to help your business meet its unique HR needs.

This is where SustainableHR PEO comes in. As a dependable and experienced PEO, our company is dedicated to offering comprehensive HR solutions for Wisconsin businesses, no matter their size. We believe that every company, even those with fewer than 15 employees, deserves access to high-quality HR services. Our solutions include payroll administration, benefits management, risk management, and much more.

Read on to learn more about SustainableHR PEO, find tips to help you choose the best HR solution for your business, and gain insights into how to smoothly transition from your current PEO to our complete, high-quality services.

Understanding the Reasons for PEO Terminations

Before diving into potential solutions, it is essential for you to grasp the reasons that might lead a PEO to let go of smaller clients. Once you comprehend the underlying factors, you’ll be better equipped to determine how best to reorient your business.

  1. Market Pressure and the Quest for Profitability: PEOs, like any other business, strive for profitability. Recent industry trends have seen many PEOs prioritizing larger clients in an attempt to increase profits. As a result, this leaves small businesses with fewer options and support in the industry.
  2. Regulatory Changes and Compliance Costs: The complex and evolving landscape of labor laws, employee protections, and tax regulations is a significant contributor to the PEO industry’s challenges. For some PEOs, the costs and time associated with maintaining compliance for smaller clients may outweigh the benefits they gain from serving them.
  3. Risk Management and Liability Concerns: When a PEO takes on a client, they are also assuming a portion of that company’s risks, from worker’s compensation claims to unemployment insurance. PEOs may calculate that the added burden of risk associated with smaller clients is not favorable to their bottom line.

Finding the Right PEO: Tips for Small Wisconsin Businesses

If your Wisconsin business is facing the challenges brought on by PEO terminations, you’re probably wondering how to find a reputable and reliable alternative. Here are some tips for selecting a new PEO partner that has your best interests at heart:

  1. Go Local: Consider partnering with a PEO that specializes in serving Wisconsin businesses. Focusing on local PEOs can ensure that your company receives dedicated expertise in local regulations, insurance requirements, state taxes, and more.
  2. Ensure Scalability: Look for a PEO that is equipped to support your company’s growth. This capacity will allow your HR department to seamlessly expand as your business develops.
  3. Look For Customization: Partner with a PEO that offers tailored, flexible strategies rather than a one-size-fits-all approach. This approach ensures that you receive the services your business needs, without being burdened by unnecessary extras.
  4. Prioritize Communication and Support: Seek PEOs with excellent customer service records and a responsive support team. A dedicated support team can save you time and hassle when dealing with complicated HR issues.

SustainableHR PEO: The Perfect Partner for Your Small Business

In response to the recent trends affecting small Wisconsin businesses, SustainableHR PEO has stepped up to provide outstanding service and support to companies of all sizes. Here are some reasons why SustainableHR PEO stands out as an excellent choice for your business:

  1. Local Expertise: Being a Wisconsin-based PEO ourselves, we are intimately familiar with the specific needs of small businesses in our state. Our team of knowledgeable HR professionals uses this understanding to offer customized solutions to our clients.
  2. Flexible and Comprehensive Solutions: One of our core values is getting to know our clients’ unique HR requirements. This relationship enables us to craft tailored solutions that adapt to your business’s changing needs over time. From payroll and benefits administration to HR management and compliance assistance, our expertise covers a wide range of HR services.
  3. Efficient and Customer-Centric Support: At SustainableHR PEO, excellent customer service is the lifeblood of our operations. Our responsive support team is always on standby to respond to your questions and requests. We aim to empower your business to focus on growing by taking care of your HR complexities.
  4. Affordability: We believe that high-caliber HR services should be accessible for businesses of all sizes. Unlike other PEOs, SustainableHR PEO offers affordable pricing for small businesses, ensuring both quality service and cost-efficiency.

Transitioning to SustainableHR PEO: A Smooth and Seamless Process

Switching to a new PEO can seem like a daunting process. However, SustainableHR PEO is dedicated to making the transition as seamless as possible. When you partner with us, you can expect a smooth onboarding process, including a project timeline, regular communication, and updates. Our team will guide you through every step, from setting up payroll and benefits to managing employee records and ensuring all necessary state and federal paperwork is completed.

Additionally, we provide ongoing support to your HR staff and employees, ensuring a smooth transition that minimizes disruption to your day-to-day operations.


The recent termination of small Wisconsin businesses from their PEOs has created new challenges for small company owners in the state. However, this obstacle also presents an opportunity to partner with a Wisconsin PEO that genuinely values your business, regardless of its size. SustainableHR PEO is here to provide the support, expertise, and tailored solutions your business needs to thrive. By choosing us, you can rest assured knowing that our commitment lies in helping your business grow and succeed in its HR endeavors.

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