How to Save 30-40% on Employee Benefits with a PEO in 2026
12/16/20251 min read
How US Companies Are Saving 30-40% on Employee Benefits with PEO Partnerships in 2026
Employee benefits represent one of the largest expenses for US employers often 30-40% of total payroll. Yet most small and mid-sized businesses overpay dramatically because they lack negotiating power with carriers. Enter the Professional Employer Organization (PEO) model.
Extend IQ Global helps clients across all 50 states access Fortune 500-level benefits at fraction of the cost through co-employment and national pooling.
Why Solo SMBs Overpay for Benefits
Small group size = higher premiums and limited plan options
Administrative fees eat into budgets
Lack of expertise leads to poor plan design
How the PEO Model Delivers Massive Savings
Master Policy Pooling – By aggregating thousands of employees nationwide, PEOs negotiate rates typically reserved for companies with 10,000+ lives.
Reduced Administrative Costs – Extend IQ Global handles enrollment, COBRA, ERISA, and ACA reporting.
Better Risk Spread – Larger, diverse risk pool stabilizes rates year-over-year.
Volume Discounts on Ancillary Benefits – Dental, vision, life, disability, and voluntary products at 20-50% lower rates.
Real Client Example:
A 75-employee tech firm in Texas switched to Extend IQ Global’s PEO in 2025. Result: 36% reduction in health premiums, added mental health coverage at no extra cost, and eliminated $45,000 in annual admin expenses.
Is a PEO Right for Your Company? Most businesses with 10-500 employees see the highest ROI. ExtendIQ Global offers a free benefits audit to quantify your potential savings.
Don’t leave money on the table in 2026. Contact us today
