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Amazon’s PEO ban: transition to a BPO and keep your DSP running

DSPs can't use PEOs, effective October 31

In case you hadn't already heard, this is critical news for DSPs. Any services that are currently provided by a professional employer organization (PEO) will need to be transitioned to a compliant option by Halloween. Don't worry—Go HQ isn't a PEO, we're a business process outsourcing (BPO) company and therefore 100% compliant with Amazon's new rule.

PEO vs BPO: a difference in responsibility

Both PEOs and BPOs are aimed at helping business owners handle administrative work. But there's an important difference that keeps us compliant with Amazon's policies: while a a PEO becomes part of your company’s employment structure, a BPO leaves employment decisions to you while providing tools, guidance, and administrative assistance. Here's how it looks at a glance:

PEO

BPO

Employment relationship
Co-employer: shares responsibility for your employees.

 

Employment relationship
Administrative partner: you're the sole employer.

 

Payroll & benefits
Run under the PEO’s tax ID.

 

Payroll & benefits
Run under your company’s EIN.

 

Employment decisions
Often made or influenced by the PEO.

 

Employment decisions
Always made by you, the business owner.

 

Amazon compliance
❌ Prohibited for DSPs after Oct 31

 

Amazon compliance
✅ Fully compliant for DSPs

 

What to do next

For workers compensation

DSPs losing workers comp can transition seamlessly through OVD Final Mile. They're trusted partners with decades of experience supporting last mile delivery businesses. Plus, they have access to all the leading standard workers comp carriers that support final mile contractors, as well as a proprietary national program through The Hartford.

For HR services

If you're losing Payroll or other HR services, we've got you covered through our Essential HR or Advanced HR services. Essential HR includes HR documentation that many DSPs may currently access through their PEO. Advanced HR includes payroll support.

Explore Essential HR   |   Explore Advanced HR

For other back office support

Make a list of all the services you currently receive through your PEO. If they fall into finance, HR or operations, there's a good chance Go HQ or a trusted partner can help you seamlessly transition before the October 31 effective date. Migrating off a PEO takes time. Payroll setups, insurance changes, and HR transitions can’t happen overnight. Whoever you choose to trust, act now to ensure you’re compliant before Amazon’s deadline.

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