Which statement best describes a Trigger Event?

• A. It is events that make a company seek out a PEO
• B. A Trigger Event is a regulatory requirement only
• C. It is a periodic annual review
• D. It is the initial vendor selection

Answer: (A)

Trigger events are turning points that prompt a company to consider outsourcing HR, payroll, and benefits to a PEO such as TriNet. They describe the moment when a business recognizes it needs a stronger HR solution and decides to explore options. Examples include rapid growth that increases HR workload, rising compliance risks and costs, burdensome administrative tasks, or changes in ownership, mergers, or a desire to offer better benefits without adding in-house HR staff. Because triggers signal the need to seek out a PEO, this description fits best.

A regulatory requirement is only one possible factor and not what defines a trigger event. A periodic annual review is a schedule-driven process, not the reason a company begins looking for a PEO. The initial vendor selection is a downstream step that happens after a trigger has prompted exploration, not the trigger itself.