Case Study: More Pay at a Lower Price
More Pay at a Lower Price
How Finity fully managed the end-to-end transition from the existing payroll setup to the PEO model.
Business Overview
Our client was running direct payroll.
While the platform performed well at an early stage, national expansion introduced hidden operational and financial friction.
The objective was not simply to replace a payroll tool but to redesign the payroll model to support scale.
Client Challenge
- Reduce the total cost of payroll and benefits
- Eliminate the operational burden of multi-state payroll compliance
- Enable continued national hiring without disrupting payroll operations or employee experience
Finity Solution
- We evaluated alternative payroll operating models and sourced a Professional Employer Organization (PEO) that enabled a co-employment structure.
- By leveraging the PEO’s aggregated employee base, the PEO provided favorable commercial and health benefits terms on the client’s behalf.
- We then fully managed the end-to-end transition from the existing payroll setup to the PEO model covering:
- Payroll operations
- Benefits administration
- Multi-state compliance
Results
Nationwide hiring without compliance friction
Access to nearly all 50 states without the need for individual state registrations, filings, or unemployment withholding management
Higher employee take-home pay, same coverage
Average employee take-home pay increased 5% due to reduced healthcare costs thanks to a PEO with lower cost benefits but like for like coverage
Immediate payroll cost reduction
Biweekly payroll reduced from $277K to $211K per cycle ($66K savings per cycle; 24% reduction per pay cycle)
Annual health benefits savings at scale
Annual benefits Costs reduced by $172K for equivalent healthcare coverage