How PEOs Can Increase accessibility

Many small organizations are rethinking what it means to “grow.” Taking a "remote first" mentality opens doors for inclusion, accessibility, and specialized expertise that might not exist locally.

Remote work has made this easier than ever in theory, but in practice, the legal and administrative side can feel overwhelming. Questions about payroll tax registration, benefits administration, workers’ compensation, and state compliance often stop small teams before they even start.

That’s where a Professional Employer Organization (PEO) can make a tremendous difference.

What’s a PEO?

A PEO is an HR and payroll partner that becomes the employer of record for your staff. Your organization still manages day-to-day work, goals, and performance, but the PEO handles the technicalities of the employment side:

• Payroll and tax filings across multiple states

• Benefits administration (often at lower group rates)

• Workers’ comp and unemployment insurance

• Onboarding, compliance, and reporting

A PEO can create a single, compliant structure that scales with you.

Why Remote Hiring Matters for Nonprofits

Expanding your hiring radius isn’t just about convenience, it’s about equity and sustainability.

• Accessibility: Remote work can open opportunities for people with disabilities, caregivers, or those in rural or economically disadvantaged areas.

• Talent Access: Many nonprofits need specialized skills (think grant compliance, data systems, or communications) that may not exist locally.

• Financial Efficiency: A fully remote team can reduce costs associated with office space and allow you to stretch limited dollars further, hiring the right person for the role rather than the nearest one.

Remote hiring can help your organization be more inclusive, effective, and resilient.

The Compliance Challenge

The challenge is that every state (and sometimes, every city) has its own rules about employment from paid leave to tax registration to workers’ compensation. For nonprofits that don’t have an internal HR department, that can mean hours spent deciphering legal requirements instead of focusing on mission impact.

For example:

• If your nonprofit is based in DC but you hire a part-time staffer in Colorado, you’ll need to register with Colorado’s Department of Labor, set up state withholding, and possibly provide state-specific paid leave.

• If you hire in multiple states, you’re managing multiple unemployment insurance accounts, payroll tax filings, and potentially multiple workers’ comp policies.

How a PEO Simplifies Multi-State Hiring

A PEO takes on those administrative burdens so you don’t have to. By entering into a co-employment relationship, the PEO becomes the legal employer for compliance purposes while you retain full control of your staff’s day-to-day work.

That means:

• You can hire talent in any state where the PEO operates (many are nationwide).

• The PEO manages registration, tax filings, and insurance.

• Your staff gains access to robust benefits and HR support, often comparable to what larger organizations can offer.

Signs a PEO Might Be Right for You

A PEO might be worth exploring if your organization:

• Employs (or plans to employ) staff in more than one state.

• Doesn’t have a dedicated HR or operations team (or needs to lighten their admin load)

• Wants to offer competitive benefits without large-group rates.

• Needs to reduce compliance risk without increasing administrative load.

• Values time spent on mission work over paperwork.

If this sounds familiar, a PEO could save your team countless hours while creating a better employee experience.

Questions to Ask When Evaluating PEOs

If you’re considering a PEO, here are a few questions to guide your research:

1. What states does the PEO operate in, and are there limitations on where staff can be located?

2. How are benefits structured, and can nonprofits access group plans?

3. What’s included in the monthly fee (payroll, compliance filings, benefits administration)?

4. What’s their experience working with nonprofits or grant-funded organizations?

5. How will you maintain access to your HR and payroll data if you ever move away from the PEO model?

Taking the time to understand these factors helps ensure that the PEO you choose truly fits your organization’s goals and budget.

Where to Start

A PEO can handle the employment side so you can focus on programs, fundraising, and impact. Whether you’re a team of three or thirty, it’s worth exploring if a co-employment model could reduce risk and increase your ability to hire and retain great people.

At Ardani Collective, we often help small nonprofits and progressive businesses assess whether a PEO is right for them. Even if a PEO isn’t the right solution today, understanding your options can save time, stress, and money down the line.

Final Thought: Remote work has changed the landscape for how mission-driven organizations build teams. The right systems and partners make it possible to do it responsibly, legally, and sustainably.

If your nonprofit is exploring remote hiring or wants to learn more about how a PEO could fit into your structure, we’d be happy to help you think it through.