More Support for the People Behind Your Business

From its roots in the cannabis industry to supporting employers across multiple sectors, UpSource PEO is helping businesses spend less time managing administrative responsibilities and more time focusing on their people and growth.

Meet UpSource PEO: A Business Built Around Helping Other Businesses

Behind every growing business is someone wearing more hats than they ever expected.

Maybe it's an owner managing payroll after hours. An HR manager trying to keep up with employee benefits, onboarding, and compliance. Or a small team that has grown to the point where managing its workforce feels like a full-time job on its own.

These are the kinds of challenges UpSource PEO was built to help solve.

Led by Zac Northcutt, UpSource began by serving businesses in the cannabis industry, where employers often struggled to find reliable HR, payroll, and benefits support from traditional providers.

As the company grew, so did its reach. Today, UpSource also supports employers in other industries, including healthcare and professional services.

At Paragon Payroll, we've had the opportunity to support UpSource through our payroll and human capital management (HCM) technology. As part of our Client Spotlight Series, we're sharing more about the company, the challenges it helps solve, and how our relationship creates opportunities for businesses looking for additional workforce support.

The Challenge: Growing Businesses Need More Than Payroll Software

Running payroll is only one part of managing employees.

Employers also need to think about health insurance, workers' compensation, employment regulations, employee documentation, and the everyday questions that come with managing a team.

For smaller businesses, those responsibilities often fall on the same person who is responsible for hiring, operations, finances, and customer relationships.

As a business grows, the challenges can become more complicated.

For example:

• Rising employee benefit costs: A business wants to offer competitive health insurance but struggles to find affordable options for its team.
• Limited HR resources: An owner handles employee questions, onboarding, and workplace policies without a dedicated HR department.
• Increasing administrative work: Payroll processing, employee documentation, and benefits administration take valuable time away from daily operations.
• Changing workforce needs: A company adds employees or locations and realizes its existing processes may no longer provide enough support.

These challenges aren't unique to one industry. They affect businesses of all sizes, particularly those navigating growth with limited internal resources.

UpSource recognized an opportunity to provide employers with additional support without requiring them to build every HR function internally.

The Solution: What Does UpSource PEO Actually Do?

UpSource operates as a Professional Employer Organization (PEO), a company that provides HR-related services through a co-employment relationship.

Co-employment means the business and the PEO share certain employer responsibilities under an agreement.

The business continues directing its employees, managing daily operations, and making decisions about its workforce. The PEO takes on defined administrative and employer-related responsibilities, which may include payroll administration, employee benefits, workers' compensation, and HR support.

For an employer, that can mean having experienced professionals available to help manage responsibilities that would otherwise fall entirely on the internal team.

What makes UpSource's approach different?

During a recent conversation with Zac, several aspects of UpSource's service model stood out.

1. A relationship that has to be earned

According to Zac, UpSource does not require annual contracts or charge termination fees. His philosophy is straightforward: the company should earn its clients' business every month.

For employers concerned about being locked into a service relationship that no longer meets their needs, that flexibility can be meaningful.

2. Straightforward pricing

UpSource describes its pricing as a monthly per-employee fee without additional markups on payroll, benefits, or workers' compensation.

This approach is designed to make it easier for employers to understand the cost of the service and evaluate whether it fits their business.

3. Less administrative work for employers

UpSource takes on much of the payroll administration process, allowing clients to focus primarily on reviewing and approving employee timecards.

Instead of spending hours coordinating routine payroll tasks, business owners and managers can redirect their attention toward their employees and operations.

4. Access to additional employee benefit options

Health insurance is often one of the most expensive and difficult parts of managing a workforce.

As an Oklahoma-based PEO, UpSource offers access to group health insurance options that may create savings opportunities for qualifying employers.

Zac shared that, in some situations, the savings on employee benefits have exceeded the cost of UpSource's PEO services.

Actual savings depend on factors such as eligibility, employee demographics, plan design, coverage requirements, and applicable insurance rules. Not every employer will experience the same results.

5. Support that works alongside existing teams

Not every business needs to outsource its HR responsibilities completely.

Some employers already have an HR manager or internal administrative team but need additional expertise or capacity.

UpSource works alongside those teams, providing resources and support as business needs evolve.

The Partnership: How Paragon Payroll Supports UpSource

UpSource is also a longtime Paragon Payroll client, using our payroll and human capital management technology to help support the businesses it serves.

The relationship brings together two complementary areas of expertise.

Paragon provides the payroll and HCM technology infrastructure. Our platform supports workforce processes such as payroll, employee information management, and related HR functions.

UpSource brings additional services and hands-on administrative support. Through its PEO model, the company helps employers navigate employee benefits, workers' compensation, payroll administration, and HR responsibilities.

Rather than treating payroll technology and additional workforce services as an either-or decision, the relationship demonstrates how they can work together.

As Zac explained during our conversation:

"It's Paragon plus UpSource. So they actually get more resources available."

That idea reflects something we believe strongly at Paragon: businesses should have access to the resources they need without having to figure everything out on their own.

For some employers, a reliable payroll and HCM platform provides exactly the support they need.

For others, changing business circumstances may create an opportunity to explore additional services.

The important part is understanding the options.

What This Means for Employers Exploring Additional HR and Benefits Support

Consider a growing business with 20 employees.

Its payroll system is working, but the owner is spending more time answering benefits questions, coordinating employee paperwork, and managing administrative responsibilities.

The company may not be ready to hire another full-time HR professional, but its existing team needs more support.

A PEO relationship could be one option worth exploring.

Or consider a business with an established HR department that's facing increasing health insurance costs.

Its team may already have the payroll technology and internal processes it needs. What it's looking for is access to additional benefits options and administrative expertise.

In either situation, the question isn't necessarily whether the business needs to replace what it already has.

It's whether additional resources could make managing its workforce easier.

These are illustrative examples, not documented UpSource client outcomes. They demonstrate the types of situations in which exploring PEO services may make sense.

A Shared Beginning in Cannabis, With Room to Grow

One of the things we appreciate about UpSource's story is where it began.

Like Paragon, UpSource recognized that cannabis businesses needed access to professional workforce services at a time when many traditional providers were hesitant to support the industry.

That experience helped shape its approach to working with employers who may have unique operational challenges or limited access to traditional resources.

Today, UpSource has expanded its services into additional industries while maintaining its experience supporting cannabis businesses.

It's a story that resonates with us.

Paragon has been cannabis-committed since 2016, and our experience supporting businesses in a highly regulated industry continues to influence how we approach payroll, technology, service, and relationships.

We believe that strong business relationships are built by understanding what employers actually need, meeting them where they are, and helping them find the right resources for their next stage of growth.

Frequently Asked Questions About PEO Services

What is the difference between a PEO and a payroll company?

A payroll company primarily helps employers calculate wages, process payroll, and manage related payroll functions.

A Professional Employer Organization provides a broader range of services through a co-employment relationship. Depending on the agreement, those services may include benefits administration, HR support, workers' compensation, and certain employer-related administrative responsibilities.

A business may benefit from payroll technology alone or decide that additional PEO services are appropriate for its needs.

Does working with a PEO mean losing control of your employees?

No. In a typical PEO arrangement, the business continues managing daily operations, supervising employees, and making workforce decisions.

The PEO assumes specific responsibilities defined in the service agreement. Employers should review those responsibilities carefully before entering a co-employment relationship.

Can a business use payroll software and PEO services together?

Yes. Payroll technology and PEO services can complement one another.

UpSource's relationship with Paragon is one example of how a PEO can use an established payroll and HCM platform to support the employers it serves.

The exact setup and services available depend on the business and its agreement with the providers.

Can a PEO help reduce employee health insurance costs?

Potentially. Some PEOs provide access to group health insurance arrangements that may offer different pricing or coverage options than an employer could obtain independently.

Savings are not guaranteed and depend on the employer's circumstances, available plans, and eligibility.

When should a growing business consider PEO services?

It may be worth exploring a PEO when administrative responsibilities begin taking too much time, employee benefits become difficult to manage, or a company needs additional HR expertise without expanding its internal team.

Comparing service agreements, responsibilities, fees, insurance options, and existing technology is an important part of the decision.

Stronger Businesses Start With Stronger Support

At Paragon, we believe the relationships we build are just as important as the technology we provide.

Our clients are doing meaningful work in their own industries, solving problems, supporting employees, and finding new ways to help businesses succeed.

UpSource is one example of that.

From its beginnings serving cannabis employers to its work supporting businesses across other industries, UpSource has built its approach around helping employers manage the responsibilities that come with having a workforce.

We're proud to support the technology behind that work and to recognize the people building businesses that make a difference.

Curious Whether Additional HR or Benefits Support Could Help Your Business?

Whether you're exploring more affordable employee benefits, need additional HR support, or simply want to understand what resources may be available, we're happy to help you start the conversation.

Connect with your Paragon representative to learn more about UpSource PEO and the additional workforce resources available through our network.

Part of Paragon Payroll's Client Spotlight Series, where we share the stories, expertise, and businesses behind the relationships we're proud to support.