PEO to non-PEO payroll conversion saves major dental practice

Client background

This large dental practice operates four locations, employs approximately 45–50 staff members and generates roughly $10 million in annual revenue. The organization had previously engaged a professional employer organization (PEO) to manage payroll, benefits and human resources (HR) functions, primarily to access stronger employee benefits and streamline administration during a period of growth.

Business challenge

During routine profitability and tax consulting discussions, Baker Tilly identified that the dental practice’s payroll and HR expenses were significantly higher than comparable dental practices. Leadership sought a solution that would retain full-service payroll and HR support, preserve the employee experience and remain compliant, while materially reducing costs and regaining control over policies, benefits and organizational culture.

The client was paying approximately $90,000 annually for PEO services and believed this cost was standard. The PEO model limited flexibility required co-employment and provided a largely reactive service experience. Additionally, leadership involved in the day-to-day operations had not been part of the original PEO decision and increasingly questioned whether the cost justified the value.

Baker Tilly approach

Baker Tilly recommended transitioning from a PEO to a non-PEO outsourced model using Baker Tilly Advantage Services. The team facilitated a seamless conversion from PEO to Baker Tilly’s wholesale ADP Workforce Now platform, ensuring all payroll, benefits and HR services were preserved. Baker Tilly worked with its benefits broker to replicate existing medical, dental and vision plans as closely as possible while establishing employer sponsored benefits under the client’s own Federal Employer Identification Number (FEIN). This shift gave the dental group full ownership of its employees, greater flexibility over policies and culture and ongoing proactive advisory support rather than a reactive call center model.

Results achieved

By transitioning from a PEO to Baker Tilly Advantage Services, the dental practice reduced annual payroll and HR costs from roughly $90,000 to less than $33,000, an estimated savings of nearly $60,000 per year. Beyond the financial impact, the practice retained continuity in payroll and benefits, minimized disruption to employees and gained proactive compliance and advisory support. Regular check‑ins, advance planning around benefits renewals and improved communication strengthened both leadership confidence and the employee experience, positioning this dental practice for long‑term operational efficiency and growth.

Reimagine payroll and HR without the limits of a PEO

Looking at reducing payroll and HR costs without sacrificing service or employee satisfaction? Baker Tilly Advantage Services helps organizations transition away from costly PEO models while maintaining compliance, flexibility and proactive support.