Start 90–120 days out
That leaves time to compare the market and switch at your benefits renewal if needed.
Separate the increases
- Admin fee change
- Benefits premium change and plan design changes
- Workers' comp rate change
- State unemployment tax change
Benchmark
Compare with two or three PEOs that fit your profile. Insperity, for example, reported benefits cost per covered employee up 5% year over year in Q2 2026; use market data like this as context, not as your number.
Negotiate or move
Ask for a rate cap, plan alternatives or a fee concession. If you move, plan benefits and payroll continuity first.