Professional Employer Organizations (PEO)

TrustRadius Top Rated for 2023

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Rippling

Rippling gives businesses one place to run HR, IT, and Finance. It brings together all of the workforce systems that are normally scattered across a company, like payroll, expenses, benefits, and computers. This enables users to manage and automate every part of the employee lifecycle…

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(1-25 of 26)

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TriNet

TriNet provides small and medium size businesses (SMBs) with full-service HR and payroll solutions tailored by industry. TriNet also offers specialized services through client access to HR representatives for advice and notifications on impactful regulatory changes.

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Rippling

Rippling gives businesses one place to run HR, IT, and Finance. It brings together all of the workforce systems that are normally scattered across a company, like payroll, expenses, benefits, and computers. This enables users to manage and automate every part of the employee lifecycle…

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Namely

Namely offers a cloud-based HR platform for integrated core and specialized HR services, including time and employee performance management and onboarding processes.

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Justworks

Justworks offers a platform for payroll, benefits, compliance support, with HR tools. As a Professional Employer Organization (PEO), Justworks offers PEO solutions that can bundle payroll, compliance, HR, and benefits under the Justworks umbrella, and help to administer employment-…

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Omnipresent

Omnipresent is an Employer of Record (EOR) solution that enables companies to employ remote talent in over 160 countries. Their global HR services give companies the ability to hire international employees without setting up a local entity. Omnipresent offers hassle-free onboarding…

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ADP TotalSource

ADP TotalSource is a professional employer organization (PEO) that provides strategic HR outsourcing. It includes services and technology to manage employee benefits, payroll, compliance, risk management, safety, and recruiting. Users have access to an online portal for things like…

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Insperity

Insperity’s complete PEO services provide the scalable infrastructure needed to eliminate inefficiencies, control expenses and reduce risks to help sustain profitability. The Insperity PEO solution combines personalized service and HR technology, aiming to maximize the effectiveness…

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StartupSoft
0 reviews

StartupSoft helps tech businesses from Silicon Valley build their own global teams. The service helps source, recruit and retain tech talents for the user's own internal team in distant locations like Eastern Europe or Latin America. StartupSoft describes their service like having…

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MidwestHR
0 reviews

MidwestHR is a Chicago PEO helping companies for over 20 years. The vendor states companies who use a PEO experience 10-14% less turnover, have a 4% lower failure rate, and experience employment growth up to 9% higher vs.comparable companies who do NOT use a PEO. MidwestHR is a…

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TopSource Worldwide

TopSource Worldwide provide a suite of employer services, helping clients to employ and pay people promptly, consistently, and compliantly, both locally and international. Their systems and processes are designed to work with the user's own technology. Services 1.Payroll…

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Express Global Employment, by Acumen International

Acumen International is a Global Employer of Record (EOR)/PEO service provider. The service helps large companies and SMEs to hire global workforce and get an expedited, ‘express’ global footprint all over the world without the need to register their own business entities. Acumen…

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ExtensisHR HRO & PEO Solutions

ExtensisHR is a national HR outsourcing services provider specializing in tailored HR solutions for small and medium sized businesses, headquartered in Woodbridge. They offer HRO and PEO services.

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VensureHR
0 reviews

VensureHR is a professional employer organizations (PEO), offering solutions for outsourced Payroll administration, Human Resources, Benefits, Risk Management and Workers’ Compensation services for businesses of any size, anywhere in the country. As an experienced PEO, Vensure states…

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Foothold America Employer Of Record

Foothold America's employer of record service, EMS, offers companies a US presence with US employees anywhere in the country and in as little as one week without the cost and complexity of setting up a US entity. Foothold America hires, as the employer of record, the employees who…

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TalentProcure
0 reviews

TalentProcure is a Managed Service Provider (MSP), specifically designed for small to mid-sized programs, offering customized solutions to support customers and their supply bases to attract, manage, and retain the best talent regardless of their worker classification or type of…

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INS Global
0 reviews

INS Global is an organization providing worldwide business expansion services and simplifying operations without hassle or delay. Their range of services includes global Professional Employer Organization (PEO), global employer of record, and international recruitment. They provide…

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Toku
0 reviews

Toku is a global provider of token compensation solutions, boasting users among Protocol Labs, Polygon, Hedera Hashgraph, Stellar, Mina Foundation, Matter Labs, dYdX Foundation, Dragonfly Capital, Filecoin Foundation, Gnosis, Safe, and others. With infrastructure across 150+ tax…

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Acvian
0 reviews

Acvian functions as a company’s outsourced HR department and provides expertise and services that the company would not deal with on its own. PEO is co-employment and sharing responsibilities with the provider. Acvian directly hires talent and takes on the full range of responsibility:…

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Panther HR
0 reviews

Panther is an HR suite for distributed teams. Remote teams can legally hire and pay people, in almost any country, in just a few clicks. It's built to let businesses hire the best talent, no matter where they are.

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Sequoia One
0 reviews

Sequoia One is a PEO partner providing employee compensation, benefits, and outsourced HR and payroll for VC-backed companies. Sequoia One offers more than a traditional PEO. Their services include a compensation management solution. Founders and CEOs have access to real-time data…

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Rivermate
0 reviews

Rivermate is a payroll management solution offered by an Employer of Record service provider to make it simple for companies and businesses to handle onboarding, payouts, benefits, and compliance for their remote employees around the world. It lets users hire, onboard, and engage…

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G&A Partners
0 reviews

G&A Partners are PEO service providers headquartered in Houston, Texas. By outsourcing HR to G&A, G&A Partners states that businesses and their employees will get comprehensive HR solutions, tailored support, integrated technology, and client service.

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Multiplier
0 reviews

A self-service platform for global employmentWith Multiplier users can find talent from anywhere in the world, onboard them using the multiplier platform, and set up payroll and benefits in a few clicks. Once the user adds the necessary details like country and employment type, the…

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Andela
0 reviews

Andela is a global talent network that connects companies with vetted, remote engineers in emerging markets, headquartered in New York. Andela boasts hundreds of companies like InVision, Cloudflare, and ViacomCBS leverage Andela to scale their engineering teams quickly and cost…

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Velocity Global

Velocity Global is a global employment solutions provider headquartered in Denver that helps companies expand overseas with technology and consulting services, specializing in global payroll and foreign subsidiary as a service (FSaaS).

Learn More About Professional Employer Organizations (PEO)

What are Professional Employer Organizations?

Professional Employer Organizations (PEOs) are HR service providers that outsource most or nearly all of a business’s HR functions. They offer organizations a combination of HR software and professional services, such as payroll processing and tax compliance assistance. PEOs are primarily used by small to midsized businesses. Their goal is often to be able to manage the full employee lifecycle administration at a company through the PEO’s software platform and services.

PEO’s function primarily as co-employers of clients’ employees. More specifically, PEOs will often be the “employer of record,” primarily for tax and benefits purposes, but also to share a range of employer responsibilities with the client company. These responsibilities range from administrative tasks, like payroll processing, to material provisions like benefits options and coverage.

PEOs provide several key benefits for smaller organizations. They reduce the need for larger in-house human resources teams. PEOs can often offer better benefits options to employees at smaller companies by leveraging economies of scale across many small businesses that collectively work with the PEO.

PEO Companies vs. HR Management Software

PEO and HR management software platforms can look very similar and overlap in many technical areas. For instance, they both provide software tools for conducting and managing a business’s HR processes. However, HR management software leaves the HR administration and management processes themselves to companies’ internal HR personnel. In contrast, PEOs go a step further by outsourcing and automating many, or most, of those processes entirely. However, PEOs are less likely to have some of the strategic HR tools, like specialized performance management tools.

PEOs may be more expensive than HR management software as single budgetary line item. However, PEO companies argue that the additional costs are offset by the reduction in in-house HR costs a company shoulders with a standalone HR management system.

PEO Features and Capabilities

There are common capabilities and offerings across all PEOs. While PEOs may specialize in certain areas, they should have at least a presence in most or all of these capabilities:

  • Payroll Management
  • Benefits administration (401k, health insurance, etc.)
  • Risk Mitigation
  • Employee Self-Service
  • Onboarding
  • Tax Administration and Filing
  • Leave and Attendance Management
  • HR Expertise and Consulting
  • HR Regulatory Compliance
  • HR Reporting

PEO Comparison

When comparing different professional employer organizations, consider these factors:

  1. Benefits offerings: How competitive is each providers’ benefits options? This is one of the prime advantages of working with a PEO, but the details of what each PEO offers can vary. Companies should pay particular attention to the likely needs of their current and future workforces, as different benefits plans will be more or less competitive depending on those workforce demographics.
  2. Pricing: PEOs can range in pricing from 3% to 15%+ of a company’s gross payroll. Given the outsourced costs around insurance and benefits coverage, the annual costs are also likely to change year over year. Companies should pay attention not only to the up-front costs, but also how pricing and costs have changed annually.
  3. HR Expertise: Smaller organizations in particular benefit from the outsourced expertise and knowledge that PEOs offer. Understanding how high quality and up-to-date a PEO’s expertise and support staff are is crucial information. Consider reviewers’ experiences leverage an organization’s HR expertise for the best insights into comparing PEO’s in this area.

Start a PEO comparison

Pricing Information

PEO pricing is usually on a per-employee basis, either by pay period, month, or year. While most PEOs don’t publicly disclose standard pricing, most estimates place PEO pricing on a per-employee basis from $900-$1,500/employee/year. Some PEOs also offer pricing as a percentage of gross payroll, often from 3%-15% of payroll at the higher end.

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Frequently Asked Questions

Who uses a PEO?

PEOs are mostly used by smaller companies with less than 500 employees, and often less than 100. PEOs tend to be industry-agnostic.

How does a PEO work?

A PEO serves as an employer of record for many smaller businesses, using economies of scale to deliver better HR expertise and benefits than a small business could afford on its own.

What are the benefits of using a PEO?

PEOs allow smaller companies to offer more competitive benefits and access more HR knowledge and expertise than they could afford by themselves. They also reduce in-house HR costs.

What’s the difference between a PEO and an HR management system?

An HR management system just provides the software platform for an in-house HR team to manage and administer. In contrast, a PEO outsources many of those HR processes entirely.

How much does using a PEO cost?

PEOs usually offer two pricing models. Flat per-employee pricing usually ranges from $900-1,500/employee/year. Pricing by gross payroll usually ranges from 3%-15%.