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:
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Managing HR tasks while running a business often feels like an uphill battle. You’re spending hours on payroll and compliance instead of focusing on growth, unsure if your current setup is even legally sound. The great news is, professional employer organizations (PEOs) are here to help!
PEOs help you offload the burden of HR—automating payroll, ensuring labor law compliance, and delivering competitive benefits—so you can reclaim your time, stay compliant, and scale your team with confidence.
As someone who researches and writes about HR tools and services, I’ve reviewed the top PEO providers and evaluated them based on what real businesses need. In this article, I’ll help you zero in on the best-fit PEO for your goals, so you can simplify HR and get back to growing your business.
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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 demo available | Pricing upon request | Website | |
| 2 | Best for accessing benchmarked salary data | Free demo available | Pricing upon request | Website | |
| 3 | Best for global payroll without local entities | Free demo available | Pricing upon request | Website | |
| 4 | Best for its industry reputation | Free demo available | Pricing upon request | Website | |
| 5 | Best for compliance in India | Free demo available | From $99/employee/month | Website | |
| 6 | Best for global mobility support | Free demo available | From $595/employee/month or $49/contractor/month | Website | |
| 7 | Best India-focused PEO | Free demo available | Pricing upon request | Website | |
| 8 | Best for pay on-demand | Not available | Pricing upon request | Website | |
| 9 | Best for flexible payment methods | Free demo available | Pricing upon request | Website | |
| 10 | Best for USA and Canada-based companies | 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 -
Guru
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.6 -
Absorb LMS
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.6
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
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
HSP Group is a global PEO and expansion management provider that helps businesses hire and manage international teams without needing to establish local entities. With services in 60+ countries and a proprietary platform called GateWay, HSP delivers payroll, HR, and compliance oversight in one place—making it easier for you to stay on top of cross-border regulations while scaling globally.
Why I picked HSP Group:
What stood out to me is how HSP doesn't just offer payroll or HR in isolation—they guide you through the bigger picture of global expansion. If you're not sure whether to set up a local entity or hire through an Employer of Record, they help you weigh the trade-offs and choose the right structure. That advisory layer is critical when navigating unfamiliar legal systems or deciding when to transition from one employment model to another.
I also liked that their in-country teams don’t operate through third-party vendors. Instead, they manage services directly—whether it's entity setup, tax filings, or compliance updates. That level of control and expertise adds consistency to the experience, especially for businesses entering multiple markets at once.
HSP Group's Key PEO Services:
HSP supports you through both EoR and direct employment. If you're hiring before establishing an entity, their Employer of Record service gives you a compliant way to onboard staff fast. When you're ready to invest deeper, they help set up the legal entity and manage the shift in payroll and HR responsibilities.
They also offer global payroll project consulting—ideal if you're dealing with fragmented systems or looking to centralize vendor relationships. Their team helps you build a sustainable, region-specific payroll model that aligns with your finance and compliance goals. On top of that, they offer full-service HR administration, so you can offload tasks like employee onboarding, benefits tracking, and HR documentation.
The GateWay platform ties it all together by giving you real-time visibility into tax obligations, payroll status, and compliance deadlines across every country you operate in. Whether you’re managing 5 countries or 15, you get a centralized hub to monitor progress and reduce the risk of noncompliance.
Pros and cons
Pros:
- Unified platform for global HR
- In-house expertise across tax, legal, HR, and accounting functions
- Real-time compliance tracking system
Cons:
- Integrations not clearly documented
- No pricing publicly available
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
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
Atlas HXM provides cloud-based HR software and comprehensive PEO services, including payroll management, benefits administration, and compliance.
Why I picked Atlas HXM: They're a popular choice across numerous industries, including non-profits, financial services, oil & gas, energy, life sciences, pharmaceuticals, technology, and government, and they can tailor their service offerings to your needs, whether you're a new startup, an SME, or an enterprise organization.
Their combined HR services and software platform covers core HR processes like payroll management, benefits administration, talent management, recruiting, and onboarding. Their user-friendly interface and personalized dashboard make it easy to monitor your workforce, with all data securely stored in the cloud.
Their software enables companies to access real-time information and data analytics, enhance employee communication, and streamline transactional processes.
Atlas HXM's online portal gives employees access to essential HR information, including their pay stubs, benefits, and paid time off information. It also uses data-driven insights to help businesses identify key performers, track employee information, track performance management, and provide employees with goals and objectives. This allows companies to develop and implement effective growth and development strategies to maximize employee potential.
The platform provides businesses with tools to automate essential recruitment tasks, such as job postings, resume screening, and background checks. Its onboarding features enable businesses to provide new hires with a seamless and personalized experience, helping them feel welcome and integrated into the company culture from their first day.
Atlas HXM's Key PEO Services:
Atlas HXM specializes in payroll processing, tax management, and compliance. They handle payment processing, tax filings, workers' compensation, and risk management. Their benefits administration services cover health, dental, vision, and 401(k) plans, providing comprehensive support for employee needs.
Other unique offerings include global mobility solutions for cross-border employee transfers. Atlas HXM assists with corporate housing, office space, and vehicle leasing, simplifying relocations for international staff. These services, combined with their robust HR platform, make Atlas HXM a strong partner for businesses with global workforce needs.
Atlas HXM's Pricing:
Pricing for Atlas HXM starts at $595/employee/month for their EOR/PEO services, or $49/contractor/month if you only need their global payroll services. You can also request a free demo through their website.
Pros and cons
Pros:
- Assistance with global immigration issues and work authorizations is very valuable
- Can help simplify cross-border mergers & acquisitions
- PEO & EOR employees can manage their own expense reimbursements through the self-service portal
Cons:
- May be too expensive for small businesses
- PEO services are administered under an EOR agreement
Remunance is an India-based International Professional Employer Organization (PEO) that partners with global businesses to establish and manage remote teams in India.
Why I picked Remunance: I like that they're specifically designed to assist businesses expanding into India. Remunance takes on HR responsibilities like talent acquisition and payroll management, which can be quite challenging when entering a new market.
They also handle compliance with local labor laws, ensuring that your operations are always in line with regulations. This allows you and your team to concentrate on core business activities without getting caught up in HR and regulatory complexities.
Another noteworthy feature of Remunance is its support for foreign subsidiary formation. If you're planning to establish a presence in India, Remunance offers expert guidance to ensure your subsidiary is set up smoothly and in compliance with local regulations.
This service is especially beneficial as it saves you from the hassle of navigating the complex legal and financial landscapes of a foreign country.
Remunance Key PEO Services:
Remunance offers talent acquisition services to help you find the right professionals for your team in India. They also provide onboarding and offboarding support, ensuring smooth transitions for your employees.
Other key services include employee benefits administration, risk mitigation, IT and infrastructure support, back-office support, time and attendance tracking, performance management, expat support, and taxation assistance.
CloudPay offers payroll and HR solutions to companies globally. Their main services are Global Payroll, Global Payments, and Global Pay On-demand.
Why I picked CloudPay: Their global pay on-demand service, called CloudPay NOW, makes them stand out among other PEO providers. CloudPay NOW allows your employees to withdraw wages they've already earned at a time that suits them, even before their scheduled payday. This happens from within the employee mobile app, and CloudPay automates the process, meaning it doesn’t result in extra work for your teams.
CloudPay's Key PEO Services:
CloudPay's global payroll services are available in 130 countries. Their ongoing compliance monitoring helps with risk management by reducing the chances of you falling foul of local regulations. Their software system also has features that let you automate administrative tasks to reduce manual work.
The company also offers analytics and reporting features. You can see the cost of payroll in each country you operate in and compare each one. You can also break expenses down by payment type to see payments, deductions, and bonuses in each country.
CloudPay's Pricing:
CloudPay doesn’t publicize pricing, but you can ask for more information on the website.
Pros and cons
Pros:
- The CloudPay Calendar makes it easy to build and schedule multi-country payroll workflows
- Integrations with popular HRIS/HCM systems are available
- Robust software implementation process
Cons:
- Pricing details are not transparent
- Their PEO services are limited to global payroll processing
G-P is a PEO company with extensive coverage that lets you hire employees in 180+ countries and pay in 180 currencies. The company also offers a comprehensive guide of the laws and requirements of each country so you can make informed choices about where to hire from.
Why I picked G-P: Working with G-P is easy. Just find the candidates you want to hire, and the company will onboard them and deal with payroll, benefits, and HR. You can track all this from within the company’s platform, which contains employee profiles, time off, and payroll.
New hires can be brought on board in days, with locally-compliant contracts. Employees can be paid with flexible methods in any of 180 currencies, using Venmo or bank transfers.
I also appreciate their knowledge hub - Globalpedia - that tracks labor laws, norms, and regulations for all the countries they operate in, giving you peace of mind when it comes to employment compliance.
G-P's Key PEO Services:
Their core PEO services include employee onboarding, benefits management, and compliance. You are also relieved of the need to worry about legal, tax, or HR liabilities. Their staff can also assist with global expansion plans and executing global transactions as well.
Their software enables you to pay employees in 187 currencies. You can even pay employees with cryptocurrencies, although the legalities of this will depend on the laws and regulations of the country the employee works in.
G-P's Pricing:
G-P doesn’t publicize pricing, but you can request a quote on the website.
Pros and cons
Pros:
- Offers regional and in-country customer support 24/7
- Their country-specific knowledge hub (Globalpedia) is extensive
- Services come with a fully-customizable software product
Cons:
- The overlap between their different services and software products is confusing
- Pricing structure is not transparent
Rippling's PEO services are backed by their modern software that automates your HR and IT busywork—from automated onboarding to remote IT management.
Why I picked Rippling PEO: If customers outgrow the need for a PEO and decide to bring all of their HR in-house, they can turn off Rippling PEO and immediately transition to Rippling’s all-in-one HR platform with zero business disruption. No other PEO offers a standalone HR platform so if a company outgrows a PEO, they’ll spend months setting up an entirely new HR system—from payroll to integrations.
For Rippling customers, system integrations will remain intact, employees will have the same login, and companies can continue using Rippling in the exact same way.
Rippling's Key PEO Services:
Rippling's PEO services include managing critical compliance tasks—like setting up state and local tax accounts and workers’ comp—and providing teams with access to big-company benefits at a lower cost.
Rippling PEO also comes with powerful reporting that can aggregate data to generate actionable insights. Customers can measure headcount changes, track payroll by department, see how candidates are moving through the recruiting pipeline, and more.
Pros and cons
Pros:
- Can cover a range of workforce management needs
- Supports day-to-day HR and automation
- Strong emphasis on compliance
Cons:
- Initial setup can take time
- May come with a learning curve when using multiple modules
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:
- Mercans
Specialty services for global operations
- Velocity Global
For relocation services
- Remote
For self-service HR tools
- Multiplier
For globally distributed teams
- Papaya Global
For cross-border payroll automation
- Omnipresent
For ensuring payroll compliance
- Worksuite
For global freelancer teams
- Oyster HR
For compliant international hiring
- Agile Hero
For its network in Asia and Oceania
- Justworks
Business PEO services with 24/7 customer support
- Trinet
PEO for small businesses in the US
- ANSR
For a talent network to help you source candidates
- Insperity
For a scalable PEO provider for midsize businesses
- CoAdvantage
For managing risk & regulatory compliance
- Global PEO Services
PEO company for immigration and global mobility support
- Engage PEO
For workers' compensation assistance
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
Selecting the best PEO companies requires a thorough understanding of the comprehensive services these organizations offer, and how outsourcing strategic parts of your in-house HR services can get hours of administrative HR work off your plate. My approach to choosing the best PEO companies is grounded in thorough research into recent PEO market data coupled with my understanding of the specific needs and challenges businesses face when outsourcing HR functions.
Here are the specific criteria I used to carefully compare the service offerings of each PEO company in 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. You could compare service providers forever, but you could waste a lot of valuable time if you aren’t thinking about the outcomes you want to achieve.
- 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 at the forefront of redefining how businesses manage their human resources functions. To meet the changing needs of their clients, PEO companies have shifted their services and capitalized on advances in technology, such as artificial intelligence (AI) and blockchain integration. Here's a quick look at the key trends affecting PEO companies, services, and technology currently:
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 underscore the PEO industry's move towards more integrated, technology-driven, and personalized HR services. As companies continue to navigate the complexities of modern workforce management, PEOs that offer innovative, flexible, and specialized solutions are poised to lead the market.
What is a PEO Company?
A professional employer organization (PEO) is a company that manages employees on your behalf. It’s a way to outsource human resources functions that you don’t have the expertise for in your business.
When you use one of these services, you use a co-employment model. The PEO will take care of HR functions like payroll, employee benefits, tax filings, healthcare, and onboarding on your behalf. Meanwhile, the employee works for you as a regular employee.
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
Partnering with a PEO company can help businesses transform their HR operations significantly. If you're contemplating HR outsourcing, understanding the benefits of a PEO partnership can provide the clarity and confidence you need to move forward with your decision. Here are several benefits that illustrate the significant impact a PEO company can have on your HR operations:
- 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.
New & Noteworthy Product Updates
Below, I've summarized the most recent release notes and product updates for my top PEO company recommendations. Discover what’s now possible through new service improvements, new PEO software features, and other company updates, and why it matters for PEO offerings.
2025 Q2: PEO Software Updates
Deel Update Notes
Deel recently introduced over 70 enhancements to its platform, focusing on improving workforce management capabilities. Key updates include enhanced time tracking, and streamlined onboarding, both designed to optimize HR operations and boost organizational efficiency.
The new time tracking dashboard accurately monitors employee time off and eliminates duplicate data, ensuring reliable workforce information and reducing the need for manual corrections. Plus, onboarding has been simplified with a new layout and checklists you can adjust for contractor hires.
These updates provide significant value to users by increasing HR efficiency and data accuracy, leading to more informed decision-making. The personalized onboarding experience enhances new hire engagement and productivity, while automation of routine tasks frees up valuable time for strategic planning.
Verdict: Overall, these enhancements facilitate more streamlined employee management processes.
Paychex Update Notes
Paychex rolled out several new payroll-focused enhancements to its Paychex Flex platform. These updates are designed to streamline tax season for both employers and employees, while encouraging more accurate and up-to-date payroll information.
A key update is the W-2 Integration & Tax Prep Software Service, which allows employees to access H&R Block or TurboTax directly through the My Perks hub at no cost to employers.
Another new feature, the Annual Employee Checkup, prompts employees to review and update their personal and tax information annually and opt into electronic W-2 delivery.
These improvements help reduce errors, save time, and ease administrative burden during tax season. By keeping employee data current and simplifying tax prep, Paychex supports a smoother, more efficient payroll experience.
Verdict: These updates will improve the user experience for Paychex Flex administrators and employees, simplifying tax season.
Globalization Partners Update Notes
Globalization Partners (G-P) has launched the public beta of G-P Gia, an AI-powered global HR advisor designed to simplify international hiring and compliance. The tool supports HR and business leaders with on-demand insights across 50 countries and all U.S. states, combining over a decade of G-P’s expertise with generative AI technology.
G-P Gia helps users create and review employment contracts, understand local labor laws, and get quick answers to HR questions. It draws from a proprietary database of 100,000+ vetted articles and 1,500+ government sources, and is powered by a patent-pending AI model built to reduce inaccuracies.
This update provides real value by significantly cutting down compliance-related time and costs. Early users have seen up to a 95% reduction in admin work, making it easier and faster to manage global HR tasks without relying on legal consultants.
Verdict: G-P's new AI capabilities will help HR professionals work smarter and faster.
Mercans' Update Notes
Mercans has partnered with Deloitte to strengthen its global compliance and governance capabilities. The collaboration supports Mercans’ goal of delivering secure, high-quality payroll and HR services by leveraging Deloitte’s expertise in risk management and audit.
Through this partnership, Deloitte will help develop and implement a quality and risk management (QRM) framework for Mercans. The framework will apply global best practices to enhance internal controls, compliance monitoring, and service consistency across Mercans’ operations.
For users, this means increased confidence in Mercans’ ability to manage compliance, reduce risk, and protect sensitive data. The new QRM framework reinforces Mercans’ position as a trusted partner for organizations managing international HR and payroll.
Verdict: This new partnership between Mercans and Deloitte will give current and future users additional peace of mind regarding compliance and risk issues.
PEO Companies: Frequently Asked Questions
Here are some answers to questions we hear frequently about professional employer organizations and how they work:
How do PEO companies work?
A professional employer organization (PEO) is a company that hires employees on behalf of businesses. It’s a way to outsource human resources functions that you don’t have the expertise for in your business. Small business owners often employ them to gain access to HR expertise such as payroll, creating benefit plans, or employee onboarding.
When you use one of these services, you use a co-employment model. The PEO takes care of HR functions like payroll, employee benefits, tax filings, healthcare, and onboarding on behalf of the client company. Meanwhile, the employee works for you as a regular employee.
PEOs offer various service options that cover the entire employee lifecycle from recruitment to offboarding. Although, many focus on payroll and HR compliance. They’re increasingly common, with the National Association of PEOs estimating that 208,000 small to medium-sized businesses in the US alone use a PEO company.
How can I benefit from using a PEO?
The main benefit of a PEO is that you get access to HR expertise without hiring HR professionals to perform these tasks. This reduces your risk of falling foul of employment law or regulations. If you have a small team, it can be far cheaper to use a PEO than to hire dedicated HR staff.
Many businesses also use PEOs when they want to hire employees abroad without actually opening offices in these areas. They hire staff via their PEOs legal entity in the foreign country to ensure you hire employees in a way that adheres to local regulations.
US-based PEO companies are also accredited by the Employer Services Assurance Corporation (ESAC). This gives customers additional peace of mind as accreditation ensures each PEO company is operating within a well-established set of industry-specific guidelines. The ESAC is a nonprofit organization run by industry professionals who bring more than 100 years of PEO regulatory experience together.
What's the difference between a PEO company and a staffing agency?
On the surface, it may seem like a PEO company is similar to a staffing agency, however, their business models are quite different. Let me explain.
- The client relationship is different. A PEO company uses a co-employment arrangement with their clients, which allows them handle numerous HR functions on behalf of the client company. On the other hand, a staffing agency does not establish a co-employment arrangement. Instead, they act as an intermediary between job seekers and the client company looking to fill an open position.
- The HR functions they offer are different. PEO companies offer a comprehensive suite of HR administration services, including payroll processing, benefits administration, compliance and risk management, workers’ compensation assistance, and HR consulting. In contrast, a staffing agency has a much more narrow focus on talent acquisition and filling vacant roles. They may also conduct background checks and pre-employment skill assessments, but their services don’t go beyond that.
- The length of the relationship is often different. Typically, when a business invests in partnering with a PEO company, they’re looking for a long-term relationship. However, staffing agencies are more often used on a short-term basis to quickly fill vacant roles or find temporary staff for specific projects or seasonal roles.
How do PEO companies handle data privacy and security?
PEO companies prioritize data privacy and security through various measures including encryption, secure data storage, and regular security audits. They comply with legal regulations such as GDPR in Europe or HIPAA in the United States, ensuring client and employee information is protected against unauthorized access and data breaches.
These firms often hold certifications that demonstrate their commitment to security standards, and they work continuously to update their policies and technologies in response to evolving threats. Typically, the security safeguards that a PEO company has in place are shared publicly on their website.
What are the typical contract terms with a PEO?
Contract terms with a PEO can vary widely depending on the services provided and the needs of the business. Typically, agreements range from one to three years, with options for renewal. Contracts outline the scope of services, fees, responsibilities of both parties, and termination clauses.
It’s important for businesses to understand the specifics of the contract, including how fees are structured (e.g., per employee or a percentage of payroll) and conditions under which the contract can be terminated early. Be sure to ask these questions when looking into PEO companies and ensure the answers align with your business requirements and expectations.
Can PEO services be customized for small businesses?
Yes, PEO services can be highly customized for small businesses. PEO companies usually offer a range of services from payroll processing to benefits administration, HR consulting, and regulatory compliance assistance. Because of this range, services are usually tailored to the specific needs of each client.
This flexibility allows small businesses and startups to choose the services that best fit their needs and budget, ensuring they receive the support necessary for growth without the overhead of a full internal HR department. Customization also extends to scaling services as the business grows, providing a flexible solution that adapts over time.
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.
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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