Florida is one of the most active states for Professional Employer Organizations (PEOs) in the country, and for good reason. With a complex regulatory environment, high workers' compensation costs in industries like construction and healthcare, and fierce competition for talent, Florida small businesses face HR challenges that can consume enormous time and money.
Key HR is a licensed Florida employee leasing company headquartered in Orlando, serving businesses across the state — from Jacksonville and Tallahassee in the north to Miami, Fort Lauderdale, and Naples in the south. Our PEO model gives your employees access to the same HR infrastructure that large corporations use, at a price that makes sense for businesses with 5 to 500 employees.
Under Florida's employee leasing statute (Chapter 468, Florida Statutes), a PEO becomes the employer of record for your workforce. This co-employment relationship allows Key HR to pool your employees with thousands of others, giving you access to group insurance rates, streamlined HR administration, and professional compliance support that would otherwise be out of reach.
What Is Employee Leasing in Florida?
Employee leasing — also called co-employment or PEO — is a business arrangement where a licensed employee leasing company like Key HR becomes the employer of record for your workforce. You continue to direct and control your employees' day-to-day work, but Key HR handles the administrative burden: payroll processing, tax withholding and filing, workers' compensation insurance, employee benefits administration, HR compliance, and more.
Florida regulates employee leasing companies under Chapter 468 of the Florida Statutes, administered by the Florida Department of Business and Professional Regulation (DBPR). Key HR maintains all required licenses and bonds, giving you the assurance that your HR partner is operating within Florida's legal framework.
The co-employment model is not a staffing arrangement — your employees are not temporary workers. They remain your team, working at your direction, building your business. Key HR simply becomes their employer of record for HR and benefits purposes, which unlocks significant cost savings and compliance protections.
How Florida PEO Services Save Your Business Money
The financial case for PEO in Florida is compelling. Here's where the savings come from:
Workers' Compensation: Florida has some of the highest workers' comp rates in the nation, particularly for construction, healthcare, and hospitality. Key HR's PEO model pools your employees with thousands of others, giving you access to group workers' comp rates that small businesses cannot achieve independently. Many Key HR clients see 20–35% reductions in workers' comp costs alone.
Employee Benefits: As a small business, you're competing for talent against large employers who offer comprehensive health insurance, 401(k) plans, and supplemental benefits. Key HR's buying power allows you to offer Fortune 500-level benefits at group rates — making you competitive in Florida's tight labor market.
HR Administration: The average small business owner spends 25–35% of their time on HR-related tasks. Key HR eliminates this burden, freeing you to focus on revenue-generating activities. When you factor in the cost of HR staff, payroll software, compliance training, and legal exposure, most Key HR clients achieve a net savings of 20–40% on total HR costs.
Florida-Specific Compliance Support
Florida employment law is complex and frequently updated. Key HR's compliance team monitors Florida-specific regulations so you don't have to, including:
Florida Minimum Wage: Florida's minimum wage increases annually under Amendment 2. Key HR ensures your payroll is always compliant with the current rate and provides advance notice of upcoming changes.
Florida Workers' Compensation: Florida requires workers' comp coverage for most employers with four or more employees (one or more in construction). Key HR manages your workers' comp policy, claims, and audits — reducing your exposure and administrative burden.
Florida Unemployment Insurance: Key HR manages your Florida unemployment insurance (FUTA/SUTA) filings, claims responses, and appeals, protecting your experience rating and minimizing tax liability.
Florida New Hire Reporting: Florida requires employers to report new hires to the Florida New Hire Reporting Center within 20 days. Key HR handles all new hire reporting as part of the onboarding process.
Industries We Serve Across Florida
Key HR serves Florida businesses across a wide range of industries, with specialized expertise in sectors that face unique HR challenges:
Construction: Certified payroll, subcontractor compliance, high workers' comp management, and OSHA safety programs for Florida contractors.
Home Health & Healthcare: Caregiver compliance, background screening, benefits that attract and retain healthcare workers in Florida's competitive market.
Hospitality & Restaurants: Tip reporting, seasonal workforce management, high-turnover HR solutions for Florida's tourism-driven economy.
Franchise Operations: Unified HR, payroll, and benefits across multiple Florida locations for franchise groups of all sizes.
Professional Services: White-collar HR solutions for Florida law firms, accounting firms, technology companies, and financial services businesses.
What's Included
- Licensed Florida employee leasing company (Chapter 468)
- Co-employment with full employer of record services
- Group workers' compensation rates (20–35% savings typical)
- Fortune 500 employee benefits at group pricing
- Full payroll processing and Florida tax compliance
- Dedicated Florida HR advisor (not a call center)
- Florida new hire reporting and I-9 management
- Unemployment insurance management and claims defense
- Employee handbook and HR policy development
- OSHA safety programs and training
- Enwage self-service HR platform for managers and employees
- Florida labor law compliance monitoring and updates
Frequently Asked Questions
What is employee leasing in Florida?+
Employee leasing in Florida is a co-employment arrangement where a licensed PEO like Key HR becomes the employer of record for your workforce. Your employees gain access to better benefits and HR infrastructure, while you retain full control over day-to-day operations. Florida regulates employee leasing under Chapter 468 of the Florida Statutes.
Is employee leasing the same as a PEO in Florida?+
Yes. In Florida, the terms 'employee leasing' and 'PEO' are used interchangeably. The Florida DBPR licenses and regulates employee leasing companies, which are the same entities known nationally as Professional Employer Organizations (PEOs). Key HR is a fully licensed Florida employee leasing company.
How much does PEO cost in Florida?+
PEO pricing in Florida typically ranges from 2–12% of total payroll, or a flat per-employee-per-month fee. Key HR's pricing depends on your industry, headcount, and services needed. Most clients achieve a net savings of 20–40% when factoring in reduced HR costs, lower workers' comp rates, and better benefits pricing.
Can I use a PEO if I have fewer than 10 employees?+
Absolutely. Key HR works with Florida businesses as small as 5 employees. In fact, smaller businesses often see the greatest benefit from PEO co-employment because they gain access to HR infrastructure and benefits that would otherwise be unavailable or unaffordable at their size.
Does Key HR serve all of Florida?+
Yes. Key HR is headquartered in Orlando and serves businesses throughout Florida, including Miami, Tampa, Jacksonville, Fort Lauderdale, Tallahassee, Gainesville, Naples, Sarasota, Pensacola, Daytona Beach, Cape Coral, and all surrounding areas.
How long does it take to set up PEO services with Key HR?+
Most Key HR clients are fully onboarded within 2–4 weeks. The process includes a free HR audit, proposal review, agreement execution, employee enrollment, and system setup. Our onboarding team handles the heavy lifting so the transition is smooth for you and your employees.