Yes, and this is part of the problem. I should not have to join a PEO (or employ 10k+ people) to provide my employees the best possible insurance rates. For that matter, nobody should have to work anywhere to get the best possible rates. The original point is that income inequality is not nearly as big of a deal as some would want to believe because of the chicanery of benefits systems. New York State provides about $140k of services (direct cost to the state government) to a family of 4 making $39,500. Yet this is not considered income to the family. Why?