Payroll & HR Blog — Comploy

Colorado Declares PEO Week. Here's What That Means for Small Businesses

Written by Comploy | May 19, 2026 7:57:36 PM

What Is a PEO and Why Does It Matter?

Key Takeaways

• A professional employer organization (PEO) provides small businesses with outsourced payroll, HR, employee benefits and compliance support.

• Colorado Gov. Jared Polis declared May 17-23, 2026, as Professional Employer Organization Week, joining other states officially recognizing National PEO week.

• Businesses that use a PEO grow more than twice as fast, see 12% lower employee turnover and are 50% less likely to close (NAPEO, 2024).

• PEOs allow small businesses to offer employees the same quality benefits as large corporations.

• Comploy serves Colorado and beyond with hands-on HR partnership and dedicated account support.

(May 19, 2026) Governor Jared Polis has declared May 17-23, 2026, as Professional Employer Organization Week in Colorado, joining other states officially recognizing National PEO Week. This recognizes an industry that has long supported small businesses behind the scenes.

If you’re not familiar with the term PEO, you’re not alone. In simple terms, a professional employer organization acts as your outsourced HR department. A PEO takes care of payroll, employee benefits, compliance, workers’ compensation and risk management, so you can focus on running your business. For example, a PEO can process your company’s payroll each pay period and handle enrolling your employees in health insurance plans, making these tasks much simpler for business owners.

What a PEO Means for Your Employees, and Your Bottom Line

With a PEO, your employees can get benefits similar to those at large companies, like health insurance, retirement plans and paid leave. This coverage helps you attract and keep great employees, even if your team is small. While the cost of PEO services can vary, many business owners find that these expenses are often offset by savings from improved employee retention, more efficient HR processes and access to better benefits rates. This can help you get more value from your investment in your team.

A PEO also helps you stay up to date on compliance. Colorado’s employment laws change frequently, ranging from wage rules to leave policies to worker classifications. A PEO keeps track of these updates so your business can stay up to date and avoid compliance risks. For instance, one Colorado business recently faced new paid sick leave requirements. Their PEO identified the changes before they went into effect, updated their policies and trained their managers. As a result, the business remained compliant and avoided costly fines or penalties.

The Data Behind PEO Growth: What the Numbers Show

PEOs support over 230,000 small and mid-sized businesses across the country, helping 4.5 million employees (NAPEO, 2025). Businesses that use a PEO grow more than twice as fast as others, have 12% lower employee turnover and are half as likely to close (NAPEO, 2024). These numbers come from research by the National Association of Professional Employer Organizations. For Colorado business owners, these benefits mean you can compete more effectively with larger companies, retain your team and build more stability for your company right here at home.

Comploy has supported Colorado businesses for years in industries like hospitality, construction and manufacturing, where daily workforce support is essential. What sets Comploy apart is the personal touch, where you can always reach a real person who understands your account, your industry and your needs.

PEO Week is a great time to consider if your HR setup is keeping up with your efforts. Talk with our team to assess your current HR needs and discover how Comploy can support your business. Get in touch at comployhr.com/contact-us or call (833) 266-7569.

Frequently Asked Questions

What is a professional employer organization (PEO)? +
A professional employer organization (PEO) is a company that provides outsourced HR services to small and mid-sized businesses, including payroll, employee benefits, compliance support and workers' compensation — so business owners can focus on growth instead of back-office administration.
How is a PEO different from a payroll company? +
A payroll company processes paychecks. A PEO goes further, managing HR compliance, employee benefits, risk management and workforce support under a co-employment model. It's a full HR partnership, not a single-function service.
Is a PEO right for small businesses in Colorado? +
Yes. Colorado's employment laws change frequently, and PEOs help small businesses stay compliant while offering employees access to competitive benefits. Companies that work with a PEO grow faster, retain employees longer and are better positioned to scale.