Designing Resilient Microservice Architectures for High-Through Put PEO Systems in the Cloud

Abstract

Professional Employer Organization (PEO) systems demand robust, scalable, and high-throughput architectures to manage complex HR, payroll, benefits, and compliance services for multiple clients in real time. Traditional monolithic architectures often struggle with performance bottlenecks and failover limitations, particularly under dynamic cloud workloads. This paper presents a resilient microservice-based architecture tailored for PEO systems in cloud environments. The proposed architecture emphasizes modular design, domain-driven decomposition, and cloud-native deployment using Kubernetes and service mesh frameworks. To ensure resilience, mechanisms such as circuit breakers, retries, and distributed tracing are integrated, while throughput is enhanced through asynchronous communication and load-balancing strategies. A detailed experimental setup is designed to benchmark performance against monolithic and hybrid models, demonstrating significant improvements in scalability, fault-tolerance, and system responsiveness. This work serves as a practical guide for architects and engineers designing next-generation enterprise systems in the PEO domain.