The outsourcing of benefits administration usually (but not always) happens in conjunction with outsourcing payroll. A third party company processes all employee benefits on an assigned schedule, just as they process payroll on behalf of that client. Often it makes sense to outsource benefits administration as part of a broader Employer of Record or PEO solution, in which case the third party will have a broader remit for benefits: They can add a client company’s new employees to existing plans, negotiate better deals, peg benefits more accurately to competitor benefits packages.