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If you can't afford to offer employee benefits on your own, why not join forces with a PEO?

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This story appears in the February 2004 issue of Entrepreneur. Subscribe »

In the late 1990s, Seth Miller was looking for a way to providebetter benefits at Miller Systems Inc., the small Boston IT consultingcompany he founded in 1995. "We just couldn't get dentalinsurance being the size we were," says Miller, 32. "Butto compete for the best people, we needed to have big-companybenefits."

In 2000, Miller joined a professional employer organization, orPEO. A PEO takes over management of a small company's HR tasksand becomes a co-employer to the company's employees. Thetypical PEO client is a small business with 16 on-site employees,according to the National Association of Professional EmployerOrganizations (NAPEO), the national trade association thatrepresents the $43 billion PEO industry.

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