Broker of Record Letter: Authorize Your Independent PEO & Benefits Broker

How a Broker of Record Letter Protects You During a PEO Evaluation

A Broker of Record Letter is most effective when issued at the beginning of a formal PEO evaluation — before any proposals are requested. Issuing it early establishes PEO Benefit Partners as your authorized representative with every provider we contact, which does two things. First, it ensures you receive competitive market pricing rather than the higher direct-to-employer rates PEOs typically quote when there's no broker driving competition. Second, it prevents the scenario where you're approached by a PEO's internal sales team at the same time an independent broker is working your account — a situation that creates confusion and sometimes results in you being locked out of broker representation mid-process.

The letter doesn't lock you into anything with PEO Benefit Partners — it simply establishes who represents you in the market. If at any point you want to change brokers or work directly with a PEO, the letter can be revoked in writing. Most clients keep it in place for the full evaluation because having a single point of contact managing all provider relationships produces better outcomes than managing them independently.

One practical note: if you've already been in direct contact with a PEO that we'll be including in your comparison, let us know before submitting the letter. PEOs treat the first broker to submit a BOR letter for a specific employer as the broker of record for that account — so timing matters. We'll coordinate the submission sequence to make sure your interests are protected across every provider in the comparison. You can review our full PEO evaluation services to understand how the process is structured from start to finish.

What Happens After You Submit the Broker of Record Letter

Once your signed BOR letter is received, PEO Benefit Partners begins the market outreach phase of your evaluation. We contact the PEO providers selected for your comparison, submit the BOR letter with your employer identification, and request that all future communications related to your account be routed through our office. Most PEOs acknowledge receipt within 1–2 business days; the full market is typically engaged within one week of BOR submission.

During the proposal period — typically 2–3 weeks — we collect and review quotes, clarify proposal terms directly with each PEO, and prepare your side-by-side comparison. You're not expected to manage any of that communication directly. When proposals are ready, we present them in a standardized format that normalizes the different fee structures (PEPM vs. percentage of payroll) so you're comparing true total cost of employment rather than marketing numbers. If you haven't yet completed your intake information, our Discovery Questionnaire captures the workforce data we need to begin the proposal request process.

When You Don't Need a Broker of Record Letter

Not every engagement requires a formal BOR letter. If you're in the early research phase — comparing PEOs conceptually before committing to an evaluation — we can run a preliminary analysis without one. The BOR letter becomes necessary when we're ready to request formal proposals, at which point we'll guide you through the submission process and make sure the letter is submitted in the right format for each provider.

For employers already under contract with a PEO and considering a switch at renewal, the BOR process works slightly differently — we work within the existing contract's renewal timeline rather than starting a fresh open-market evaluation. If you're approaching a renewal and want to understand your options, a consultation call is the right starting point. We'll review your current agreement, identify what's negotiable, and let you know whether staying with your current PEO or switching makes more financial sense for your situation.