26 Best PEO Companies of 2025: Reviewed & Compared
Best PEO Companies Shortlist
Here’s my shortlist of the 10 best professional employer organization (PEO) companies that I’ve covered in detail, out of the 26 options I assessed:
The best PEO company helps you outsource your HR functions—like payroll, compliance, and employee benefits—so you can focus on scaling your business instead of getting buried in administrative tasks. Whether you’re frustrated with the limitations of your current provider or you’re just starting to explore what a professional employer organization can do, this guide is here to help.
A top-tier PEO can take over time-consuming HR operations, help you stay compliant with frequently changing labor laws, offer access to better benefits plans, and support your team’s growth—without the cost and complexity of building out your own HR department.
But with so many providers offering different pricing models, services, and specialties, finding the right fit can feel overwhelming.
I’ve spent years researching and reviewing HR software and services for HR professionals just like you. In this article, I’ll walk you through the best PEO companies available today, why each one stands out, and how to choose the right partner to support your business goals.
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Best PEO Companies: Comparison Chart
This comparison chart summarizes pricing, trial, and demo details for my top PEO company selections to help you find the best PEO provider for your budget and business needs.
| Tool | Best For | Trial Info | Price | ||
|---|---|---|---|---|---|
| 1 | Best across all 50 states and beyond | Free trial + demo available | From $29/month | Website | |
| 2 | Best for globally distributed teams | Free demo available | From $20/user/month (billed annually) | Website | |
| 3 | Best for accessing benchmarked salary data | Free demo available | Pricing upon request | Website | |
| 4 | Best for its industry reputation | Free demo available | Pricing upon request | Website | |
| 5 | Best for global workforce management | Not available | From $199/employee/month | Website | |
| 6 | Best for compliance in India | Free demo available | From $99/employee/month | Website | |
| 7 | Best for self-service HR tools | Free trial available | From $29/user/month | Website | |
| 8 | Best for small US-based teams | Free demo available | From $8/employee/month | Website | |
| 9 | Best for ensuring payroll compliance | Not available | From $29/contractor/month to $499/EOR employee/month | Website | |
| 10 | Best for SMBs | Free demo available | Pricing upon request | Website |
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Rippling
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Kudoboard
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Willo
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8
Reviews of the Best PEO Companies
To make your search easier, I’ve handpicked and reviewed the top 10 PEO companies that stand out for their services, reliability, and value. Each review breaks down what they offer, so you can quickly see which one matches your needs.
And if you’re looking for even more options, you’ll also find 16 additional providers listed below—giving you plenty of choices to explore.
Deel is a professional employer organization platform that enables hiring in all 50 states as well as internationally by establishing local expertise. Companies can use Deel to rapidly employ people in 150+ countries without ever needing to establish a new entity.
They are well-known for their international presence and expertise and are used by many well-known companies including Reddit, Shopify, and Dropbox.
Why I picked Deel: Deel's PEO service and software platform offers full HR management and payroll, covering everything from onboarding and payments to termination. Their web app is user-friendly and offers a range of features to help businesses manage their workers effectively.
These include international benefits, contract management, and expense tracking. Their integrated contract management function also supports advanced customizations such as stipends, signing bonuses, and stock options.
Deel's Key PEO Services:
The well-established business has launched several new service offerings over the past year, including global payroll, global mobility support, integrated Slack tools, and advanced integrations. The global payroll offering brings in-house expertise, which can significantly help companies with existing payroll setups to streamline their accounting and reporting procedures.
Deel also offers free calculator tools to help you estimate the cost of an international worker. You can compare different country costs and see what benefits and withholdings are required. Deel also ensures all legal obligations are met on your behalf so you don't have to stress about local compliance requirements either.
Compared to other PEO and EOR offerings, Deel stands out with local country experts who provide consultative approaches for each location you hire from. They are also one of the largest payroll systems we’ve seen here, and report having 100,000+ active worker contracts.
Deel's Pricing:
Deel offers flat-rate user pricing with several different plans to choose from, and a free version for businesses with up to 200 people. You can also request a free demo through their website.
Pros and cons
Pros:
- You can track time-off requests easily via a Slack plugin
- Offers additional employer of record (EOR) services, if needed
- Offers global payroll services across 150+ currencies
Cons:
- No free trial available
- No mobile app available
New Product Updates from Deel
Introducing Deel AI Workforce
Deel has launched the AI Workforce, a set of specialized agents designed to handle repetitive HR, payroll, and compliance tasks with speed and accuracy. These AI agents don’t just assist—they execute tasks from start to finish. For more information, visit Deel's official site.
Multiplier is a highly efficient PEO (Professional Employer Organization) that partners with organizations where they have their own entities, and manages full-time employees and independent contractors.
Why I picked Multiplier: They can help with administrative responsibilities such as payroll, benefits administration, expense reporting, leave, and timesheets management. Multiplier helps you expand in new markets 90% faster.
It also helps you stay compliant with local labor laws, reducing legal risks. Multiplier supports different worker classifications, so you can hire full-time employees and contractors in the same platform. If your team is managing talent across several countries, Multiplier can help simplify your processes.
With Multiplier you can manage local entity payroll and international onboardings, generate compliant contracts in minutes, make payments in 120+ currencies, and run a 100% accurate multi-country payroll. They'll also help you stay on top of legal compliance and changing local labor laws and regulations through their network of 100+ legal experts.
Multiplier's Key PEO Services:
Features include automated document collection for onboarding, built-in IP protection to help secure your business, and localized benefits support so your team members get benefits aligned with their region. You can also handle expense reimbursements in local currencies and access real-time employee cost calculators to budget for international hires. The platform provides in-app contract editing, letting you tweak employment terms without leaving the dashboard.
Multiplier's Pricing:
Multiplier's fees are transparent and modular, and cost from $20/employee/month or $40/contractor/month for payroll services, or $400/employee/month for employer of record services. You can also request a free demo through their website.
Pros and cons
Pros:
- Offers built-in expense tracking tools
- Real-time cost estimates by location
- Editable contracts in-platform
Cons:
- More expensive than traditional PEO services
- Not ideal for short-term hiring or outsourcing needs
ADP TotalSource is a full-service PEO solution that helps you outsource your HR functions to hire and manage global talent. Their combined services and software platform cover core HR functions, including international recruiting, top-level employee benefits plans, international payroll processing, global talent benchmarking, and new hire onboarding.
Why I picked ADP TotalSource: ADP TotalSource is an IRS-certified PEO that’s available in 180+ countries. Their PEO services also include additional HR expertise, plus international benchmarking data so you can ensure your new hire offers and compensation packages remain competitive in the global market.
Their software standardizes and digitizes the onboarding experience for your staff, including the set-up of employee records, company policy acknowledgments, and benefits enrollment, no matter where your staff are located.
Their payroll module also helps you process payroll and ensures compliance with local tax laws thanks to their dedicated team of payroll specialists.
ADP TotalSource's Key PEO Services:
ADP's PEO Services include everything you'd expect: support for recruiting and hiring, benefits, payroll, and compliance. Their recruiting experts will help you source qualified candidates through a mobile-friendly career site, and will complete background checks on your behalf as well.
Their benefit specialists can help you create competitive health plans, as well as other employee perks and discounts such as commuter benefits, an EAP (employee assistance plan), and more.
Plus, their payroll specialists will take care of all the typical payroll hassles, from your regular pay runs to paying bonuses, handling garnishments, or providing early wage access to employees who need it.
ADP TotalSource's Pricing:
Pricing details for ADP TotalSource are available upon request. You can also request a free demo through their website.
Pros and cons
Pros:
- Their knowledgeable staff act as your HR Business Partner for hire
- Can handle the needs of larger businesses or enterprises
- Well-known and trusted HR service provider
Cons:
- ADP offers many services and software packages, which can be confusing
- Geared towards hiring and managing talent within the USA
Paychex PEO offers a comprehensive suite of software and services for HR teams, including payroll, benefits, compliance, and insurance administration.
Offered in tandem with their software platform (Paychex Flex), Paychex PEO provides additional expert support and HR consulting services. From recruitment and hiring to employee onboarding and payroll processing, many aspects of the employee lifecycle are covered.
Why I chose Paychex PEO: I included Paychex PEO in this list because of its comprehensive set of services, including employee benefit management and HR consulting services, and its reputation in the industry. It offers a wide range of HR solutions, including payroll management, employee benefits administration, and compliance assistance.
You can use their software platform to track your team’s daily hours, manage time sheets, approve PTO, and oversee pay and benefits in one place. Employees have a self-service portal where they can access digital copies of their pay stubs, see their contributions, and manage their retirement accounts.
Paychex PEO's Key PEO Services:
Paychex can get so much off your plate as a PEO provider, including payroll processing, with support from a dedicated payroll specialist when you need it. Payroll and tax deductions are also handled, ensuring compliance at the local, state, and federal levels.
You'll also gain access to employee benefits that are competitive with some Fortune 500 companies. It all starts with their HR technology platform where you can enroll in different benefits in a matter of clicks.
Their benefit experts can also help you craft more unique employee perks, such as a flexible spending account (FSA) or a premium-only plan (POP), which can help your staff pay for unexpected but qualified medical expenses.
In addition, Paychex PEO's services include access to a network of dedicated safety experts who can help you design customized employee training programs depending on your industry. This is especially useful for businesses operating within OSHA requirements and regulations, since they'll monitor any changes on your behalf.
Lastly, Paychex PEO also offers personalized HR guidance, including a US-based support team of HR professionals who will get to know your business and provide personalized recommendations.
Paychex PEO's Pricing:
Paychex offers ad-hoc pricing information. All you need to do is book a sales consultation where you can discuss your needs.
Pros and cons
Pros:
- Multiple HR professionals to support each client
- Nationwide coverage (US & Northern Europe)
- Improve talent retention
Cons:
- Potential loss of control of certain HR processes
- You need at least 5 employees to use PEO services
Remote People is a platform that offers businesses the ability to manage their global workforce with ease. It provides services like recruitment, payroll management, and compliance to help companies hire and manage employees across over 150 countries.
Why I Picked Remote People: I picked Remote People as a good professional employer organization because it offers Employer of Record (EOR) services that manage compliance and payroll for remote employees. This means you can hire talent from anywhere without worrying about local employment laws. Additionally, their global payroll management allows you to pay employees in multiple currencies, which is a huge plus for businesses operating in different regions.
Remote People also provides contractor management services, which means you can hire and pay international contractors without the hassle. They take care of the paperwork and ensure you meet local compliance requirements, so you can focus on growing your business. The platform's global employee benefits packages enhance employee satisfaction, making it easier for you to attract and retain top talent.
Remote People Features and Integrations:
Features include reliable background checks, which help you make informed hiring decisions. The platform also offers US PEO services, allowing you to manage your workforce in the United States with ease. Additionally, Remote People provides a suite of HR tools, including salary calculators and form generators, to simplify your HR processes.
Remote People's Pricing:
Remote People is transparent about their pricing and charge start from $199 per employee per month.
Pros and cons
Pros:
- Access to a vetted global talent pool
- Includes Employer of Record and PEO services
- Provides global payroll, contractor, and relocation support
Cons:
- No listed software integrations
- Limited publicly available customer reviews
Wisemonk is a Professional Employer Organization (PEO) that assists global companies in hiring, paying, and managing employees in India without the need to establish a local entity. By handling compliance and administrative tasks, Wisemonk enables you to focus on your core business operations.
Why I picked Wisemonk: I like its comprehensive compliance management. They ensure adherence to Indian labor laws, tax regulations, and mandatory benefits, reducing legal risks for your business. This allows you to operate confidently, knowing that all regulatory requirements are meticulously handled.
Wismonk also offers tax optimization services. They offer tax planning and optimization for both employers and employees, helping to minimize tax liabilities and maximize take-home pay. This benefit can enhance employee satisfaction and retention within your team.
Wisemonk Key PEO Services:
Wisemonk offers payroll processing, ensuring timely and accurate salary disbursements while managing tax deductions and statutory contributions. They also have equipment lifecycle management, taking care of all aspects of equipment for remote teams, from procurement to recovery.
In addition, Wisemonk offers flexible benefits administration, allowing you to tailor employee benefits to suit individual needs. They even provide background checks to ensure that potential hires meet your company's standards.
Pros and cons
Pros:
- Flexible benefits administration caters to diverse employee needs
- Efficient equipment lifecycle management for remote teams
- Comprehensive compliance management ensures adherence to local laws
Cons:
- Could offer built-in time tracking
- Limited global availability; primarily focused on the Indian market
Remote is a platform that helps you hire and manage remote employees globally. The company takes care of the entire employment process, from onboarding when they join your company to offboarding when they leave.
The company helps with HR management, benefits, and payroll. And it offers a suite of self-serve onboarding and management tools that employees and employers can use to get the most out of their experience.
Remote owns entities in every company it operates in. And it hires in-house legal and HR experts to ensure you are always up-to-date with regulations, even if they change. The service covers both full and part-time employees as well as the hiring of international contractors.
The company also supports your domestic human resource needs. For example, the payroll tax compliance feature helps you navigate IRS (internal revenue service) requirements with employees inside and outside the U.S.
Companies can sign up to Remote and hire one employee for free. After this, there is a transparent pricing model of $349 per employee per month or $29/contractor/month.
Justworks is a professional employer organization that helps small and growing businesses handle payroll, HR, compliance, and benefits from a single platform. By partnering with Justworks, you get access to tools and resources that make managing your team more manageable and efficient.
Why I picked Justworks: I chose Justworks because of its strong focus on compliance support, which is essential for any business working with a PEO. You don’t have to stress about staying on top of federal, state, and local employment laws since Justworks helps with things like workers’ compensation, unemployment insurance, and tax filings.
Another reason I picked Justworks is its payroll services. Payroll often takes up a lot of time and creates stress when errors happen. With Justworks, you can set up automated payroll that works for any type of team structure. It allows you to handle fast and flexible payments, ensures taxes are taken care of, and simplifies financial processes.
Justworks Key PEO Services:
Justworks also offers access to employee benefits that go beyond health coverage, such as 401(k) plans, mental health resources, and family-building services. It provides HR tools that let you manage your team from one place, giving you the ability to handle data-driven reporting for smarter decisions.
In addition, it offers time tracking that integrates directly with payroll, helping employees log hours easily and accurately. It even gives you resources to attract and retain talent by offering benefits packages that are often only available to larger companies, giving your small business a competitive edge.
Pros and cons
Pros:
- Offers mental health and wellness resources
- Helps small businesses access quality benefits
- Simplifies payroll with automation and accuracy
Cons:
- Limited global or international support options
- Limited for larger enterprises
Omnipresent offers Professional Employer Organization (PEO) services designed to help businesses manage HR tasks in countries where they have established entities.
Why I picked Omnipresent: By partnering with Omnipresent as your certified PEO provider, you can avoid the need for a large in-house HR team to manage complex human resources, benefits, or legal aspects across different states or countries. This allows you to concentrate on improving employee turnover and other critical business areas.
Another benefit is Omnipresent's expertise in ensuring regulatory compliance in payroll matters. They provide compliant payroll services, including accurate calculations and necessary documentation, which helps you avoid costly fines associated with non-compliance.
Omnipresent Key PEO Services:
Services include access to better employee benefit rates, as Omnipresent leverages its pool of customers to negotiate more favorable rates and a wider range of benefits at lower costs. Additionally, their platform allows you to run payroll quickly, offering a fast and compliant solution for your global team, preventing data silos, and reducing administrative burdens.
Furthermore, Omnipresent provides real-time expert support, offering guidance on registration, payroll, taxes, labor laws, and more.
Omnipresent's Pricing:
Pricing begins from $100/employee/month.
TriNet is a professional employer organization (PEO) that provides a complete HR solution for small to medium-sized businesses. Through its platform, you can offload essential HR tasks like payroll processing, benefits administration, and compliance management. This lets you focus more on your business while still giving your team reliable HR support.
Why I picked TriNet: I picked TriNet because of its ability to manage payroll and related compliance tasks through its PEO model. You can rely on it to handle payroll processing accurately, including tax filings and wage reporting, so you don’t have to juggle complex requirements. This service reduces your team’s administrative load and helps you avoid mistakes that could cause financial penalties.
Another reason TriNet stands out as a PEO is its benefits access. Even if your business is small, TriNet gives your employees access to benefit plans that are usually reserved for larger companies. You can offer medical, dental, vision, retirement, and voluntary benefits that make your workplace more competitive when it comes to attracting and keeping talent.
TriNet Key PEO Services:
Other key services include risk mitigation services that help you stay compliant with employment laws and manage potential liabilities. You also get HR expertise, where consultants support you with guidance on employee relations, policies, and organizational development.
In addition, the technology platform offers tools like applicant tracking, performance management, and reporting to help you manage your workforce efficiently. TriNet even supports contractors and global workforce needs, giving you the flexibility to manage diverse teams across different employment types and locations.
Pros and cons
Pros:
- Supports contractors and international staff
- Access to HR consulting expertise
- Wide range of employee benefits options
Cons:
- Processing leaves or adjusting time-off balances can be slow
- Onboarding new employees sometimes involves a lot of back-and-forth
Other PEO Service Providers
Here are some additional PEO providers that didn’t make it into my top 10 PEO services shortlist, but are still worth considering:
- Remunance
India-focused PEO
- HSP Group
For global payroll without local entities
- Velocity Global
For relocation services
- Rippling
For USA and Canada-based companies
- CloudPay
For pay on-demand
- Mercans
Specialty services for global operations
- Oyster HR
For compliant international hiring
- Papaya Global
For cross-border payroll automation
- Atlas HXM
For global mobility support
- Worksuite
For global freelancer teams
- Agile Hero
For its network in Asia and Oceania
- Insperity
For a scalable PEO provider for midsize businesses
- ANSR
For a talent network to help you source candidates
- Zempleo
For international recruitment services
- CoAdvantage
For managing risk & regulatory compliance
- Global PEO Services
PEO company for immigration and global mobility support
Related HR Software Reviews
If you're looking for better HR tools in addition to PEO companies, check out these other core HR offerings, that we've tested and evaluated:
- HR Software
- Payroll Software
- Recruiting Software
- Employer of Record Services
- Applicant Tracking Systems
- Workforce Management Software
Selection Criteria for the Best PEO Companies
To find the best PEO companies, I focused on providers that offer end-to-end HR support—like payroll, benefits, compliance, and onboarding—so businesses can offload admin work and focus on growth. My selection process combined the latest PEO market research with real-world insights into what companies need most when outsourcing HR.
Here's a summary of the criteria I used to create this list:
Core PEO Services (25% of total score): To be considered for inclusion in my list of the best PEO companies, each provider had to offer the following basic services:
- Payroll processing abilities for different types of employees (both full-time, part-time, and contractors), including calculating tax deductions
- The knowledge and experience to assist with recruiting and hiring, as needed
- Knowledge of, and monitoring support for compliance requirements at the local, state, and federal regulation level
- Assistance with mitigating workplace risks and managing workers' compensation claims
- The ability to provide training and development opportunities to enhance employee skills and productivity
- The willingness to partner with businesses of any size, from startups and small operations to midsize businesses, larger businesses, or enterprise organizations
Additional Standout Services (25% of total score): To help me narrow in on the best PEO companies out there, I also took note of any unique or less common services, including:
- The ability to offer and manage customizable employee benefits plans to support diverse needs for your existing staff and help attract new talent
- Specialized knowledge and support for compliance management in complex or heavily regulated industries
- Support managing unique employee wellness and engagement programs
- Advanced analytics and reporting capabilities to uncover actionable HR insights
- PEO services that cover a wide variety of countries
Industry Experience (10% of total score): To evaluate the industry experience of each PEO company, I considered the following:
- How many years their business has operated in the EOR space
- The depth of their global expertise, including how many different countries they offer PEO services in
- The combined experience and credentials of their team members, if available, including any specializations within specific industries
- Any recognition by industry peers or awards for excellence in PEO services
Customer Onboarding (10% of total score): To get a sense of each provider's customer onboarding process, I considered the following factors:
- The availability of comprehensive onboarding materials, such as fact sheets, guides, FAQ repositories, or other training resources
- Support for integrating the PEO provider's software with existing HR systems
- Direct access to onboarding specialists, customer support, or a dedicated account manager during the setup phase
Customer Support (10% of total score): Since the PEO company will act as a co-employer for your remote workers, it's important to ensure you'll receive timely communications and top-level support, for your employees and your in-house HR team. To evaluate the level of customer support each company offered, I considered the following:
- Multiple support channels, including phone, email, and live chat
- Whether the company offers a dedicated account manager or contact person for each PEO agreement
- The existence of a multilingual support team that covers different time zones
- Evidence of responsiveness and effectiveness in resolving issues, as inferred from customer reviews
Value for Price (10% of total score): To gauge the overall value of each service, I considered the following factors:
- Transparent pricing models without hidden fees
- Comparative analysis of service offerings versus cost
- Flexibility in service packages to suit different business sizes and needs
- Willingness to customize services to match budget restrictions
- Demonstrated ROI through efficiency gains and strategic benefits
Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how happy real users are with a service. Here are the factors I considered:
- Consistently high ratings across a variety of consumer review platforms
- Specific feedback on the ease of use of the PEO services
- Positive feedback regarding specific services or functions such as payroll or benefits management
- Testimonials highlighting exceptional customer support and quick problem-solving for complex issues
Using this assessment framework helped me identify the PEO companies that go beyond basic requirements to offer additional value through unique services, deep industry experience, smooth onboarding, effective support, and overall value for price.
In general, PEO services are a good option for smaller organizations, with no little or no in-house HR, who need better benefits or multi-state hiring. They might not be so cost effective for larger organizations with complex, custom HR needs who want tight control over all HR processes and already have an HR team and infrastructure.
How to Choose a PEO Company
Partnering with a PEO company can help you outsource your core HR functions so you can focus on more strategic HR operations. To help you figure out which PEO service best fits your needs, you need to document your specific challenges first.
As you work through your own unique selection process, keep the following points in mind:
- What problem are you trying to solve? Start by identifying the challenges you're trying to overcome, whether that's managing HR admin tasks for employees abroad, improving your benefits administration, or monitoring key markets for changes to labor laws and regulations to maintain compliance.
- Who will benefit from the service? Consider who will manage the PEO relationship (i.e., who will be your main contact person in-house?) and how working with a PEO company will improve their day-to-day work tasks.
- What is your budget? To evaluate cost, estimate how many foreign employees your chosen PEO company would serve. Since PEO providers often charge a flat monthly fee based on your employee headcount, this will help you proactively estimate your monthly costs.
- What outcomes are important? Review the capabilities you want to gain or improve, and how you will measure success. For example, you may want to reduce administrative demands on your in-house HR staff or put new HR support structures in place that are scalable to accommodate future growth. Being clear on your desired outcomes upfront will help you avoid wasting time on providers that aren't a solid fit.
- How it would work within your organization? Consider how the service provider's software ecosystem would work alongside your existing workflows and systems. Would their software framework integrate with your existing HR software, or would you face data management roadblocks?
Remember every business is different — don’t assume that a PEO company will work for your organization just because it's popular. If you're really having a difficult time figuring out the best fit for your needs, you could also enlist the help of a PEO broker to help you analyze all the options in detail.
I recommend doing thorough research on the PEO service model and culture to make sure it aligns with the needs and culture of your organization and you can work well with them. One thing to keep in mind is that, even when companies work with a PEO, they need at least one HR person on staff, or someone to liaise between the PEO and the staff.
Trends in PEO Services and Technology
PEO companies are evolving fast, reshaping how businesses handle HR by embracing new tech and client demands. From AI-driven automation to blockchain-backed compliance tools, today’s PEOs are streamlining operations and enhancing service delivery.
Here’s a quick look at the top trends shaping the future of PEO software and services:
Specialized Services
- Increased Focus on SMEs and Startups: A significant trend is the emergence of services specifically designed for small to medium-sized enterprises (SMEs) and startups, providing them with scalable HR solutions that accommodate rapid growth and change.
- Industry-Specific Solutions: There's an increasing availability of industry-specific PEO services, catering to unique requirements of sectors like healthcare, technology, and retail.
- Shifting Service Demand: Services related to traditional, one-size-fits-all benefits packages are seeing a decline in demand as businesses shift towards more customizable and flexible HR solutions.
Technological Advancements
- Increased Use of AI and Machine Learning: AI and machine learning algorithms are being integrated into PEO solutions to further streamline HR processes, from payroll processing to personalized benefits packages. This integration also enables better predictive analytics and customized employee experiences.
- Automation of Compliance and Risk Management: Automation tools for compliance and risk management are becoming more sophisticated, reducing the manual workload and enhancing accuracy in monitoring changing regulations.
- Bespoke Employee Benefits Platforms: PEOs are developing more customizable benefits platforms that allow businesses to offer tailored benefits packages, meeting the diverse needs of their client's workforce.
- Blockchain for HR Operations: Some PEOs are beginning to explore using blockchain technology for secure and transparent HR operations, including payroll processing and employment verification.
These trends highlight the PEO industry’s shift toward smarter, tech-enabled, and more tailored HR solutions. As workforce needs grow more complex, the PEOs leading the way are those delivering flexible, specialized support that helps businesses adapt and scale.
What is a PEO Company?
A PEO company is a service provider that takes over your core HR responsibilities—like payroll, benefits, and compliance—through a co-employment model. Companies can outsource their human resources functions to them, while retaining control over day-to-day operations and team management.
Small to mid-sized businesses use PEOs to reduce legal risk, offer better benefits, simplify payroll and tax filings, and save time on HR tasks they don't have in-house capacity to manage.
Professional employer organizations (PEOs) handle international payroll by simplifying compliance through centralizing salary and invoicing processes across countries.
Key PEO Services
PEO companies offer a wide range of services that cover all aspects of the employee lifecycle, from hiring and onboarding to termination and offboarding. Here’s a short summary of the key services I assessed to create this list of the best PEO service providers:
- Payroll Services: Payroll administration is a core HR service that most PEO companies offer. They take care of everything from payroll processing to submitting payments and managing paid time-off (PTO) to generating pay stubs. When you engage a PEO provider to help with your payroll, they'll also help organize your required payroll taxes as well.
- Regulatory Compliance: Good PEOs ensure you stay compliant with all relevant employment regulations and labor laws. Compliance support is especially useful if you're hiring in countries or managing remote workers in states with different tax regulations than where you’re based. Their local knowledge will help you stay proactive in terms of risk mitigation too.
- Employee Benefits: PEOs can help you create attractive benefits packages. They can help you create competitive benefit plans that include everything from health insurance to life insurance, plus workers’ compensation plans, commuter bonuses, and retirement plans. Some can also help you offer coveted employee perks such as flexible spending accounts (FSA) or health spending accounts (HSA), as well.
- Recruiting and Staffing: Some PEOs also offer international recruiting and staffing services to help you find employees within the global talent landscape. Once hired, many PEOs have their own HR software set up to help you onboard new hires using hassle-free automated workflows.
- Global HR Services: Many international PEOs also offer global Employer of Record (EOR) services too. This is offered in cases where an organization doesn’t have a legal entity in the foreign country they want to hire in. For companies in that situation, it's a nice add-on service to have to improve access to global talent.
- Data Management: Many of the PEO service providers on this list have software that allows you to manage the services these companies provide. These include self-service features that help you with administrative tasks like approving payroll, generating contracts, and viewing reports. Some PEO companies also include employee self-service portals, allowing employees to update their own personal information with ease.
- Talent Management: Some full-service HR management providers will even manage things like employee training and performance management. This is usually more the case if you’re employing contract workers as opposed to in-house, full-time staff. Software solutions may also offer mobile apps employees can use for time tracking and other key tasks.
- Risk Management: A PEO company can help you identify and mitigate workplace risks to reduce your liability and create a safe work environment for your staff. Risk management can also lead to lower insurance costs and protect your organization against lawsuits.
- Workers' Compensation: You can also enlist a PEO company to manage all administrative aspects of your workers' compensation claims and insurance. This valuable service supports employees in case of work-related injuries while also managing costs and ensuring regulatory compliance.
- Customer Support: The best PEO companies offer access to expert help and HR consultants who can guide you through complex decisions or help you troubleshoot any unexpected issues that may arise.
Partnering with a PEO allows businesses to access a wide range of services that are crucial for efficient operation and strategic growth. By outsourcing these HR functions to PEO experts, companies can ensure compliance, attract and retain top talent, and maintain a focus on their core objectives.
Benefits of Using a PEO Company
Working with a PEO company can streamline your HR operations, reduce risk, and free up time to focus on growth. If you’re considering HR outsourcing, understanding the advantages of a PEO can help you move forward with clarity and confidence.
Here are some key benefits that show the impact a PEO partnership can make:
- Streamlined HR Administration: From payroll processing to benefits administration, PEOs take on the burden of HR operations, allowing companies to focus on core business strategies and growth, while HR professionals can concentrate on more strategic HR initiatives.
- Cost Savings on Employee Benefits: By leveraging their buying power, PEOs negotiate better rates for health insurance and other benefits, making it possible for small and medium-sized businesses to offer competitive packages that attract and retain top talent.
- Compliance and Legal Expertise: This service is invaluable as it minimizes the risk of non-compliance penalties by keeping your business up to date with local, state, and federal regulations, saving time and reducing legal risks.
- Risk Management and Safety Programs: Through developing comprehensive risk management strategies and implementing safety programs, PEOs help reduce workplace accidents, lower insurance costs, and create a healthier work environment for your employees.
- Enhanced Employee Performance Management: By providing systems for feedback, performance tracking, and development plans, PEOs can help businesses enhance employee engagement and productivity, contributing to overall business success.
Using a PEO company offers a strategic advantage by allowing businesses to allocate their resources more effectively, focusing on growth and innovation while ensuring that their HR functions are managed efficiently and professionally. This partnership both enhances operational efficiency and fosters a more engaging and compliant workplace culture.
Generally speaking, it’s advantageous to use a PEO for up to 20 employees. Above that, the buying power of the company could be close enough to that of the PEO to make the high PEO fees disadvantageous.
Costs & Pricing for PEO Companies
The cost of PEO services will depend on their pricing model. PEO companies typically offer flexible pricing models to accommodate the diverse needs of their clients. Some offer monthly rates based on the number of employees you have, while others have per-user pricing in addition to a flat monthly rate.
Other options include pricing as a percentage of your payroll, bundled services, or custom pricing depending on the specific services your business needs.
Here's a breakdown of the different pricing options PEO companies generally offer:
- Per-Employee Fee: This is one of the most common pricing models used by PEOs. Under this model, the PEO charges a fee based on the number of employees you have. This fee can be billed monthly, quarterly, or annually. It's a straightforward model that scales with the size of your workforce, making it easier to predict costs as your business grows.
- Flat Monthly Fee: Some PEOs offer a flat monthly fee for their services. This model is less common and is typically used by small businesses with a stable number of employees. The flat fee is agreed upon in advance and covers all the PEO offerings outlined in the contract.
- Percentage of Payroll: Another pricing model is based on a percentage of the client's total payroll. This model directly ties the PEO's fees to your monthly payroll expenses. However, anticipating monthly fees is more challenging in this model if your company's payroll varies significantly from month to month.
- Bundled Services vs. A La Carte: Bundled services provide a comprehensive package of HR services for a single price, offering value for businesses that need a wide range of HR support. Alternatively, a la carte pricing allows you to select and pay for only the services you need, offering flexibility and potentially lower costs.
- Custom Pricing: For larger or more complex businesses, PEOs may offer tailored service packages with pricing that reflects the specific needs and circumstances of your business. Custom pricing is negotiated on a case-by-case basis and can provide a more precise fit for unique business requirements.
Plan Comparison Table for PEO Pricing Models
| Pricing Model | Description | Best for |
|---|---|---|
| Per-Employee Fee | Charges a fee based on the number of employees. | Businesses of any size, especially those scaling up or down. |
| Flat Monthly Fee | A predetermined monthly fee that covers all services. | Small businesses with a stable number of employees. |
| Percentage of Payroll | Fees are a percentage of the total payroll. | Businesses with variable payroll expenses. |
| Bundled Services vs. A La Carte | Offers comprehensive packages or selectable individual services. Provides flexibility and potential cost savings. | Businesses seeking specific services or comprehensive HR solutions. |
| Custom Pricing | Tailored packages and pricing for unique business needs. Negotiated on a case-by-case basis for a precise fit. | Larger or complex businesses with specific requirements. |
Understanding these different pricing models and how they align with your business objectives is crucial when selecting the right PEO partner for you. Transparency in pricing and a clear understanding of the services included are also key factors to ensure there are no unexpected costs or gaps in service.
PEO Companies: Frequently Asked Questions
Here are some answers to questions we hear frequently about professional employer organizations and how they work:
Do I lose control over my employees by working with a PEO?
No, you retain all authority over your employees’ day-to-day management, hiring, and firing decisions when you partner with a PEO. The PEO becomes a co-employer and assumes primary responsibility for payroll, taxes, and compliance, but decisions about promotions, discipline, work assignments, and your company’s culture remain fully in your hands. This partnership is designed to reduce your HR admin burden, not your control.
What HR functions can a PEO handle versus what I’ll need to do myself?
A PEO typically takes care of payroll processing, benefits administration, workers’ compensation, HR compliance, and sometimes employee onboarding paperwork. You’re responsible for recruiting, supervising, and developing your staff, plus making strategic decisions. This split lets you focus on running your business while the PEO manages much of the tedious paperwork and regulatory details.
Can PEO services be customized for small businesses?
Yes, PEOs often design flexible, tailored service packages for small businesses who don’t have full HR teams. You can often select exactly which functions you need—such as payroll, benefits, or compliance—based on your company’s current stage and budget. It’s common for providers to scale services up or down as your team grows or your needs change.
If you need help finding a reliable partner, I recommend reviewing my list of the best PEO services for small businesses to save yourself all the leg work.
How does pricing work for PEO services for small businesses?
PEOs usually charge either a flat fee per employee each month or a percentage of your total payroll. Pricing may also include setup fees or additional costs for optional services like recruiting. For small businesses, providers often offer tiered packages or custom quotes based on your number of employees and the services you select. Always ask for itemized pricing so you understand what’s included and whether there are hidden fees.
Will a PEO help with compliance for multi-state employees?
Yes, many PEOs help manage compliance for teams working in multiple states, handling complex state and local tax filings, employment laws, and benefits requirements. If you have remote workers or plan on expanding into new states, ask prospective PEOs if they have expertise in those areas. The right partner can prevent costly regulatory mistakes as your business grows.
What's the difference between a PEO company and a staffing agency?
A PEO enters into a co-employment relationship with your business, handling HR tasks like payroll, benefits, compliance, workers’ comp, and HR consulting while you maintain operational control. It’s a long-term partnership designed to support your existing workforce.
A staffing agency, by contrast, doesn’t share employment responsibilities. Instead, it supplies temporary or contract workers—employing them directly but assigning them to your business. Their focus is short-term staffing needs, such as filling vacant roles, seasonal work, or project-based positions.
How do PEO companies handle data privacy and security?
PEOs prioritize protecting sensitive employee data using secure software, data encryption, and limited administrative access. They comply with legal regulations such as GDPR in Europe or HIPAA in the United States, and many obtain compliance certifications like SOC 2, which demonstrate their internal controls are regularly audited.
When evaluating providers, ask directly about their security protocols, breach response plans, and how your business data will be stored and accessed.
What are the typical contract terms with a PEO?
PEO contract terms can vary but often last 12 to 24 months, with options for shorter agreements for small firms. Read the contract closely to see how terminations work, including notice periods, penalties, and transition support if you decide to switch providers. Some PEOs allow month-to-month service with more flexible exit terms, which may be ideal if you’re just getting started.
Can I switch PEO providers easily if my needs change?
Yes, switching is possible, but you’ll need to consider contract exit clauses, transition timelines, and data migration needs. Before you sign up, confirm the cancellation policy, any fees for early termination, and what support is available during the transition. A reputable PEO should help you smoothly transfer payroll and HR records to your new provider with minimal interruption to your business.
PEO vs. EOR Services
Many employer organizations operating in the global workspace do offer both PEO and EOR services. So what’s the difference, and what does each type of service include?
Professional employer organizations (PEOs) work on your behalf to cover common functions like payroll, tax filing, international benefits administration, and HR services. Technically, you’re only outsourcing specific functions to the PEO organization though, meaning the employees who benefit from these services are still considered your organization’s employees. In addition, you’re required to already have a legal entity set up within a foreign country in order to use PEO services within that country.
Many businesses have come to understand an employer of record (EOR) can be used to hire internationally when a business has no legal entity in the foreign country where their potential workers are located. Technically, when using an EOR provider, foreign workers are hired by the EOR and not your parent organization. Instead, the EOR becomes the full legal employer and manages all aspects of their employment while they perform work on behalf of your company.
For further guidance check out our article on the difference between a PEO and EOR.
PEO vs. HRO and ASO Services
Curious how PEO's compare to other HR services you've heard about, such as HRO (human resource outsourcing) and ASO (administrative services outsourcing) services? Allow me to explain:
As mentioned above, PEO employment services use a co-employment model, meaning they share legal responsibilities with your business.
HRO services, on the other hand, provide outsourced HR support but without the co-employment arrangement. This means your business retains full responsibility for legal compliance and employee-related liabilities. HROs typically focus on specific HR functions, such as recruitment, training, or payroll, but the scope can be more flexible, depending on your needs.
ASO services offer administrative support similar to HROs but without any legal liability sharing. They focus on handling routine tasks like payroll administration, but you won’t get the same access to employee benefits or compliance support that PEOs provide. ASO services are ideal for businesses that need help with administrative tasks but want to retain full control over their HR responsibilities.
Other HR Outsourcing Resources
To further assist you in your journey, here are some links to other global HR services you'll want to consider. If you have more questions, these links are a great place to start:
- Best Employer of Record Services
- Best Global Payroll Solutions for Distributed Teams
- Best Global HR Service Providers
- Best HR Outsourcing Services
PEOs are the Easiest Way to Achieve Global Expansion
Now that the war for top talent has gone global, PEO companies are an important ally for businesses of all sizes, whether you're an SMB or an enterprise organization.
The best PEO companies offer all the HR support you need to run your business. They let you focus on the things you’re good at while ensuring you stay compliant with international employment laws.
To choose the right PEO, think about the HR tasks you need to outsource and look for one that meets those needs.
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