Supporting a Multi-State Transition from a PEO

Client Overview:

A fast-growing healthcare company operating across the U.S. made the strategic decision to transition away from its Professional Employer Organization (PEO) model. The company sought greater control over its HR operations and compliance processes as it scaled its business.

The Challenge:

While the shift away from a PEO offered long-term benefits, it also presented a significant administrative hurdle: the need to establish state-specific Tax Identification Numbers (TINs) in 38 states. PEOs typically manage critical HR functions such as payroll, benefits, and tax compliance. Without the centralized support of the PEO, the company’s internal HR team was tasked with managing a complex, time-sensitive transition.

Already at capacity with responsibilities including benefits transfers, compliance management, and payroll system updates, the HR team did not have the bandwidth to research and register for TINs in each state—each with its own set of tax laws, processes, and timelines.

Eikon-X's Approach:

The HR team stepped in to provide expert support, managing the end-to-end process of securing TINs in all 38 states with an organized project plan, processing documentation, and a convenient secure portal to share state login information securely with the client. Our team navigated each state’s specific tax requirements, completed and submitted necessary applications, and ensured all registrations were completed efficiently and accurately, allowing the client to remain compliant and avoid costly delays.

Conclusion:



Thanks to our partnership, the company was able to maintain operational continuity during its transition out of the PEO model. The HR team regained focus on strategic priorities, and the business continued its growth trajectory with full compliance across all jurisdictions.