How to Partner with a Michigan PEO (Professional Employer Organization)

Partnering with a PEO in Michigan lets businesses offload HR, payroll, and compliance to experts, ensuring adherence to state and federal labor laws, access to competitive benefits packages, and streamlined administrative workflows.

With a PEO’s local expertise, you can focus on growth while reducing operational costs and legal risks. Learn how Deel’s PEO services simplify Michigan HR operations.

What is a PEO in Michigan?

A Professional Employer Organization (PEO) in Michigan is a third-party HR partner that co-employs your workforce, managing payroll, benefits administration, tax filings, and compliance with Michigan’s labor laws.

Why partner with a PEO in Michigan?

Cost savings and efficiency gains

• Automate payroll and tax filings with real-time analytics

• Reduce HR headcount and administrative overhead

• Leverage expert support for recruitment, onboarding, and worker classification

Affordable employee benefits

• Group purchasing power delivers competitive health, life, and retirement plans

• Maintain existing carriers while offloading benefits compliance

Stronger compliance and legal protection

• PEO assumes responsibility for federal and Michigan-specific regulations

• Mitigates financial and reputational risks due to non-compliance

PEO vs. In-house HR comparison

Learn more about the differences between PEO vs EOR, and PEO vs payroll services.

How to partner with a PEO in Michigan

1. Define your business needs: Analyze HR spend, payroll volume, benefits requirements, and compliance risks.

2. Research Michigan-focused PEOs: Review case studies and testimonials for state-specific success.

3. Evaluate services and benefits: Compare plan quality, customization options, and platform usability.

4. Assess compliance and risk management: Verify continuous compliance capabilities with Michigan labor laws.

5. Review customer support: Ensure dedicated human resource business partners (HRBPs) and certified advisors are available.

6. Negotiate contract terms: Clarify fees, termination clauses, and service-level agreements.

7. Plan implementation: Communicate changes, integrate systems, and train stakeholders.

Learn more in our guide to changing PEOs.

Michigan employment and labor laws at a glance

• Flat income tax: 4.25% state rate (plus local city taxes)

• Minimum wage: $12.48/hr (Feb 21, 2025) and $5.99/hr cash wage for tipped employees

• Overtime: 1.5× after 40 hrs/week

• Earned Sick Time Act: Accrual begins Feb 21, 2025—up to 40 hrs paid sick time (businesses <10 employees) or 72 hrs (≥10 employees)

• Workers’ comp: Separate policies required for client and PEO

• Right to work: Employees cannot be compelled to join a union

• At-will employment: Termination permitted at any time barring illegal reasons

How Deel PEO is different

Deel’s in-house PEO is built to support fast-growing teams with the tools, coverage, and service they need, all in one platform.

Fully in-house support

Deel PEO is run entirely by internal specialists, including certified professionals, licensed advisors, and dedicated HRBPs. Clients get direct access to expert guidance across payroll, benefits, and compliance, with no third-party handoffs or delays.

Benefits admin made easy

Admins can choose, enroll, and manage health benefits for US employees directly in the Deel platform. They can view costs, track coverage, and handle renewals—all in one place, without chasing brokers or juggling paperwork.

See also: How to Choose the Best PEO for Health Insurance

Exclusive access to Aetna International plans

For teams with globally mobile employees, Deel is the only PEO to offer Aetna International health plans, ensuring continuous coverage across borders without needing to manage separate providers.

All-in-one platform

Admins can manage hiring, onboarding, payroll, and benefits in one place. Deel simplifies every step, from enrollment to renewals, reducing HR admin time.

Compliance coverage at every level

Deel helps businesses meet federal, state, and local employment laws, taking the guesswork out of US HR compliance.

Ready to simplify HR in Michigan? Book a demo to see how Deel’s in-house PEO delivers compliant, all-in-one payroll, benefits, and HR management.