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10 Best Professional Employer Organizations (PEO) for 2022

The Best Professional Employer Organizations

Here’s the list of the best PEO services that I’ll cover in this article.

  1. Oyster HR

    Best global PEO platform for compliant international hiring without a local entity

  2. Papaya Global

    Best professional employer organization for excellent workforce analysis reports

  3. Deel

    Best PEO for reliable end-to-end payroll management

  4. Multiplier

    Best PEO company for globally distributed teams

  5. Rippling

    Best option for switching between PEO and self-managed HR with a click, for USA-based companies

  6. ADP TotalSource

    Best for ensuring competitive employment offers through benchmarked salary data

  7. Velocity Global

    Best PEO provider for relocation services

  8. CloudPay

    Best PEO payroll service for on-demand pay

  9. Globalization Partners

    Best PEO client for various payment methods

  10. Mercans

    Best PEO service provider with additional specialty services for global operations

Using a professional employer organization (PEO) is an easy way to outsource your HR needs. They’re increasingly common, with the National Association of PEOs estimating that 173,000 small to medium-sized businesses in the US alone use a PEO.

There are two main reasons why you might want to use a PEO. Small business owners often employ them to gain access to HR expertise such as payroll, creating benefit plans, or employee onboarding.

Another common use case is to hire one for access to specific expertise. For example, you could use a PEO to help hire staff abroad while staying compliant with all local regulations. 

Choosing the best professional employer organization is just a case of finding one that meets your business needs. In this article, we’ll introduce ten of the best PEO solutions currently available.

Key HR Services Offered By PEO Companies

What do I look for when I select the best PEO solutions? Here’s a summary of the key services to look out for: 

  1. Payroll: Payroll administration is a central service offered by most PEOs. They take care of everything from payroll processing to submitting payments, and managing paid time-off (PTO) to generating pay stubs.
  2. Compliance: Good PEOs ensure you stay compliant with all relevant employment regulations. It’s useful if you are hiring in countries or states with different regulations than where you’re based.
  3. Employee benefits: PEOs can help you create attractive benefits packages. They’ll help you with everything from commuter bonuses to life insurance and workers’ compensation plans.
  4. Dashboard: 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 approve payroll, generate contracts, and view reports.
  5. Recruiting: Some PEOs also offer recruiting services to help you find employees. This allows you to bring in new hires without any of the hassles.
  6. Global services: Many PEOs can act as a global Employer of Record (EOR) to allow you to hire employees in other countries. It’s perfect for hiring global talent remotely.
  7. Customer service: The best services offer access to expert help and HR consultants who can guide you through complex decisions.

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Overviews of the 10 Best Professional Employer Organization

Here’s a brief description of each PEO company to showcase each tool’s best use case, some noteworthy features, and screenshots to give a snapshot of the interface.

1

Oyster HR

Best global PEO platform for compliant international hiring without a local entity

Oyster is a global employment platform that pairs extensive country coverage with local expertise to help you scale while delivering a world-class employee experience. Trusted by fast-growing distributed teams, Oyster helps you hire quickly and compliantly in 180+ countries without requiring you to open a single local entity.

Building a thriving global workforce doesn’t stop after the contract is signed. With Oyster, you’ll also be able to streamline the remote onboarding process, automate international payroll in 120+ currencies, create competitive country-specific benefit packages, and manage every step of the employee lifecycle—all from one easy-to-use dashboard. Plus, Oyster’s dedicated legal team and HR experts, country hiring guides, self-serve global employment tools, and remote academy courses provide the extra support you and your distributed team need to thrive in this new world of work.

Pricing for Oyster starts at $399 per employee per month, which includes full-time employee hiring in over 130 countries, built-in legal, tax, and privacy compliance, IP protection, and liability insurance. They also offer a freemium plan for hiring and paying global contractors only. To learn more, you can request a personalized Oyster demo through their website.

Free demo available

From $399/employee/month

2

Papaya Global

Best professional employer organization for excellent workforce analysis reports

Papaya Global is a professional employer organization that provides an end-to-end global workforce management solution with cross-border payments in 160+ countries. The platform supports all employee options (payroll, EoR, contractors), integrates with popular work management tools, and uses smart technology to ensure compliance and eliminate errors.

Papaya helps you simplify your international workforce management, eliminating spreadsheets and errors with their unified automated payroll solution. They boast 100% local compliance assured.

Papaya creates a highly visible system for tracking payroll spending and real-time business intelligence. You can get insights on who your workers are—by country, cost centers and more; see how well you’re attracting and keeping top talent, and why they chose to leave; and clearly visualize where your company stands in equity of gender, age and pay—by department and seniority structure.

Papaya costs from $20/employee/month and comes with a free trial.

Free trial available

From $20/employee/month

3

Deel

Best PEO for reliable end-to-end payroll management

Deel is a professional employer organization platform that enables international hiring 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.

Deel 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.

The Deel platform offers end-to-end management of your team, from onboarding 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.

The well-established business has launched several new 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.

Compared to other EOR offerings, Deel stands out with local country experts that 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. They also have over 1,200 reviews and a 4.8 rating on Trustpilot at the time of writing.

Deel costs from $599/employee/month and offers a free demo.

Free demo available

From $599/employee/month

4

Multiplier

Best PEO company for globally distributed teams

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. 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.

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 fees are transparent and modular, and cost from $20/employee/month or $40/contractor/month. You can also request a free demo through their website.

Free demo available

From $20/employee/month

5

Rippling

Best option for switching between PEO and self-managed HR with a click, for USA-based companies

Rippling PEO runs on modern software and can automate your HR and IT busywork—from automated onboarding to remote IT management. Rippling takes care of critical compliance tasks—like setting up state and local tax accounts and workers’ comp—and provides 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.

When customers decide to bring all of their HR in-house and outgrow the need for a PEO, 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. With Rippling, system integrations will remain intact, employees will have the same login, and companies can continue using Rippling in the exact same way.

Rippling integrates with Google Workspace, Typeform, Databricks, BrightHire, Atlassian, Google Workspace, Slack, Checkr, Zoom, GitHub, Asana, 1Password, Zendesk, Dropbox, Sage Intacct, Netsuite, Microsoft 365, QuickBooks, DocuSign, Upwork, LinkedIn, and dozens more.

Rippling PEO costs from $65/user/month and offers a free demo.

From $65/user/month

6

ADP TotalSource

Best for ensuring competitive employment offers through benchmarked salary data

ADP TotalSource is a full-service PEO solution that helps you outsource your HR functions to hire and manage global talent. Their platform includes core HR functions, international recruiting tools, top-level employee benefits plans, international payroll processing, and global talent benchmarking.

Their software standardizes and digitizes the onboarding experience for your staff, including the set-up of employee records, company policy acknowledgements, 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 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.

Pricing details for ADP TotalSource are available upon request.

Pricing upon request

7

Velocity Global

Best PEO provider for relocation services

Velocity Global is a PEO service that helps simplify international expansion. It claims to be able to help you get up and running in any country in the world in as little as 48 hours.

The HR administration services offered by the company cover everything from hiring employees to payroll, compliance, benefits packages, employee training, and risk mitigation. Choose whichever services you need, and the company will send a monthly invoice for services used.

One way the company stands out is through its global immigration services. These help you move international employees to different countries compliantly. Velocity Global’s team of experts takes care of all paperwork and visas and can even offer on-the-ground support to help with the transition.

Velocity Global doesn’t publicize pricing. You can contact the company for more information.

Pricing upon request

8

CloudPay

Best PEO payroll service for on-demand pay

CloudPay offers payroll and HR solutions to companies globally. Compliance features help with risk management by reducing the chances of you falling foul of local regulations. The tool also has features that let you automate administrative tasks to reduce manual work.

The most unique CloudPay feature is called Now. It allows your employees to withdraw wages they have 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.

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 doesn’t publicize pricing, but you can ask for more information on the website.

Pricing upon request

9

Globalization Partners

Best PEO client for various payment methods

Globalization Partners is a PEO with extensive coverage that lets you hire employees in 187 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.

Working with Globalization Partners 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.

Globalization Partners 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.

Globalization Partners doesn’t publicize pricing, but you can request a quote on the website.

Pricing upon request

10

Mercans

Best PEO service provider with additional specialty services for global operations

Mercans offers a wealth of services to help organizations expand their operations globally, including global PEO, EOR and GEO (global employment outsourcing services) and global payroll. They also offer additional specialty services including HR management and advisory services, global mobility and talent management, incorporation and local compliance services, and business process outsourcing.

They’re currently used by some very big-name companies, including Adidas, Audi, Bayer, Ford, IDEA, Johnson & Johnson, MasterCard, Mazda, Mitsubishi, Shell, and Tesla.

Mercans integrates directly with many common human capital management (HCM) and enterprise resource planning (ERP) systems, including BambooHR, Sage, SAP SuccessFactors, Oracle Cloud HCM, UKG Pro, and Workday.

Mercans offers customized pricing upon request. You can also request a free demo through their website.

Free demo available

Pricing upon request

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The 10 Best Professional Employer Organization Summary

Tool Free Option Price
1
Oyster HR

Best global PEO platform for compliant international hiring without a local entity

Freemium version

Free demo available

From $399/employee/month Visit Website
2
Papaya Global

Best professional employer organization for excellent workforce analysis reports

Free trial available

From $20/employee/month Visit Website
3
Deel

Best PEO for reliable end-to-end payroll management

Free demo available

From $599/employee/month Visit Website
4
Multiplier

Best PEO company for globally distributed teams

Free demo available

From $20/employee/month Visit Website
5
Rippling

Best option for switching between PEO and self-managed HR with a click, for USA-based companies

Not available

From $65/user/month Visit Website
6
ADP TotalSource

Best for ensuring competitive employment offers through benchmarked salary data

Not available

Pricing upon request Visit Website
7
Velocity Global

Best PEO provider for relocation services

Not available

Pricing upon request Visit Website
8
CloudPay

Best PEO payroll service for on-demand pay

Not available

Pricing upon request Visit Website
9
Globalization Partners

Best PEO client for various payment methods

Not available

Pricing upon request Visit Website
10
Mercans

Best PEO service provider with additional specialty services for global operations

Free demo available

Pricing upon request Visit Website

Other PEO Service Providers

Here are a few other options that didn’t make the top 10 PEO companies shortlist:

  1. Infiniti HR – PEO service provider for payroll, benefits, insurance, risk management, recruitment and general HR services. 
  2. Paychex PEO – HR outsourcing specialist that supports the full employee lifecycle, from attracting and retaining talent to managing payroll, PEO benefits and compliance (formerly Oasis Outsourcing). 
  3. Engage PEO – Certified professional employer organization (CPEO) focused on payroll and tax administration, HR services, workers compensation, compliance and training, and more. 
  4. CoAdvantage PEO – PEO partner specializing in payroll, benefits, risk & compliance management and HR technology.

What Is A Professional Employer Organization (PEO)?

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. 

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. 

How Can I Benefit From 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 the PEOs legal entity in the foreign country to ensure you hire employees in a way that adheres to local regulations.   

PEOs Are The Easiest Way To Global Expansion

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 employment law.

To choose the right PEO, think about the HR tasks you need to outsource and look for one that meets these needs. 

What’s the Difference Between PEO and 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 (PEO) 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. 

An employer of record (EOR) is used in situations where an organization wants to hire internationally, but they lack a legal entity in the foreign country where their potential workers are located. When using an EOR provider, foreign workers are technically hired by the EOR and not your parent organization. Instead, the EOR becomes the full legal employer and managers all aspects of their employment while they perform work on behalf of your company.

between peo and eor infographic

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By Tim Reitsma

Tim is the co-founder and General Manager of People Managing People, an online publication focused on building a better world of work. He is experienced with people & culture, leadership, business strategy and operations with a focus on building great teams who are excited about their craft and their organization. With over 15 years of leadership experience, Tim has always been guided by his core values: faith, family, curiosity, and fun. He is a coach, mentor, speaker, advisor, and an active volunteer in his community. Tim loves spending time outdoors with his wife and two kids as well as mountain biking in the north shore mountains.

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