PEO companies: what a PEO is, what it costs and how it works
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A PEO (professional employer organization) co-employs your staff and costs $79 to $125 per employee per month where prices are published: Justworks charges $79 or $124, Remote starts at $99 and Deel charges $125 for its US PEO, according to their pricing pages (checked October 16, 2026). TriNet, Insperity, ADP TotalSource, Paychex and Rippling quote only.
Health premiums, workers' comp and payroll taxes come on top. For 10 employees on $60,000 each, the Justworks PEO Plus fee is $14,880 a year inside a total bill of $156,630 in our middle scenario.
A PEO (professional employer organization) is a company that co-employs your staff: it runs payroll and files employment taxes under its own accounts, puts your team on its health, retirement and workers' comp coverage, and handles HR compliance, while you keep directing the work.
Our picks at a glance ranked by published score out of 100
- 1JustworksSmall companies that want PEO benefits at a published monthly priceFrom $79 a month67See pricing
- 2TriNetVenture-backed and professional services firms that want large-group benefitsQuote only50See pricing
- 3ADP TotalSourceBusinesses that want a PEO on ADP's payroll platform with a full benefits menuQuote only44See pricing
- 4Paychex PEOVery small firms that may start on Paychex payroll and move up to a PEOQuote only34See pricing
- 5InsperityFirms that want a high-touch PEO with a fee not tied to payroll sizeQuote only33See pricing
On this page
What PEO means and how it works
PEO stands for professional employer organization. When you sign with one, your employees move onto the PEO's payroll and tax accounts, its benefit plans and usually its workers' comp policy. You still hire, set pay, direct the work and decide who leaves. Federal law describes a certified PEO contract as one where the PEO pays wages and employment taxes, shares responsibility for hiring and firing, and keeps employee records (26 USC 7705(e)(2)).
- You sign a client service agreement and send census data: names, pay, states and job classes.
- The PEO quotes its admin fee, benefit premiums and workers' comp rate.
- Employees enroll in the PEO's health, dental, vision and 401(k) plans.
- Each payday the PEO runs payroll, withholds and deposits the taxes, and bills you for wages, taxes, premiums and its fee in one invoice.
- The PEO handles HR paperwork and compliance help; you keep running the business.
This is also why people search for "PEO insurance": the health plans and the workers' comp policy belong to the PEO, and your team joins them. Justworks lists workers' comp as required for PEO clients, ADP says TotalSource includes it in the fee, and BBSI bills it as a payroll-based premium.
Check certification before you sign. An IRS-certified PEO (CPEO) is the employer for federal employment taxes on wages it pays, and Social Security and FUTA wage bases do not restart when you join mid-year (26 USC 3511). With a non-certified PEO you generally stay liable. 11 of the 15 PEOs we review appear on the IRS active list dated August 7, 2026; see the IRS certified PEO list.
Some states license PEOs as well. Texas licenses them through TDLR, Florida licenses them as employee leasing companies, and New York listed 387 registered PEOs as of October 1, 2026. Our state pages cover PEOs in Texas, PEOs in Florida, PEOs in California and PEOs in New York.
What a PEO costs
- Lowest published fee
- $79Justworks PEO Basic, per employee per month
- With health plan admin
- $124 to $125Justworks PEO Plus; Deel US PEO
- Industry range
- $40 to $160per employee per month, or 2% to 12% of payroll (ADP)
- Quote only
- Most PEOsTriNet, ADP, Paychex, Insperity, Rippling
| PEO (score) | Fee | Type of figure | What to know |
|---|---|---|---|
| Justworks PEO Basic (67) | $79 per employee per month | Published | 401(k), 24/7 support and HR tools. No setup fee. Workers' comp required and priced separately. |
| Justworks PEO Plus (67) | $124 per employee per month | Published | Adds medical, dental and vision administration, HSA and FSA. Premiums are not in the fee. |
| Remote US PEO | from $99 per employee per month | Published | No base fee. Billed in USD; needs a US bank account. |
| Deel US PEO | $125 per employee per month | Published | Promo credits three months of fees on two-year order forms signed July 15 to December 31, 2026. |
| TriNet (50) | Quote only | Vendor says it has no list price | Uses $150 per employee per month only as an illustration. Premiums separate. A minimum headcount applies. |
| ADP TotalSource (44) | Quote only | Industry range from ADP's own guide | 2% to 12% of payroll or about $40 to $160 per employee per month across the industry. ADP says workers' comp is in the TotalSource fee. |
| Paychex PEO (34) | Quote only | Third-party estimate: $100 to $250 per employee per month | Eightx (Jun 18, 2026) and HR.software (May 24, 2026); Paychex has not confirmed it. |
| Insperity (33) | Quote only | No current dated estimate | Direct costs plus a fixed-dollar HR service charge per employee. Credit of up to $425 per full-time employee for new HR360 clients is a promotion. |
Source: vendor pricing pages checked Oct 16, 2026; ADP, "What is the cost of a PEO" (updated Jul 14, 2026); third-party estimates dated as shown. Scores are HRPricing PEO scores; Remote and Deel are scored as EOR providers, not PEOs.
The fee is the smallest line you control. Here is a full year for a 10-person Texas team at $60,000 each:
| Line | How it is figured | Amount |
|---|---|---|
| PEO admin fee | $124 x 10 x 12 | $14,880 |
| Employer FICA | 7.65% x $60,000 x 10 | $45,900 |
| FUTA | 0.6% net x first $7,000 x 10 | $420 |
| Texas SUTA | 2.70% new employer rate x first $9,000 x 10 | $2,430 |
| Health premiums (scenario) | $750 per employee per month x 10 x 12 | $90,000 |
| Workers' comp (scenario) | $0.50 per $100 of payroll x $600,000 | $3,000 |
| Total | Sum of lines | $156,630 |
Sources: Justworks pricing (checked Oct 16, 2026); IRS Publication 15 and Topic 759; Texas Workforce Commission 2026 rates. Health and workers' comp lines are illustrations from our PEO cost page, not quotes; replace them with the numbers on your proposal.
The admin fee is 9.5% of that extra cost. Health premiums are the biggest line, so a PEO whose plans cost $100 less per employee per month saves $12,000 a year here, more than the gap between any two published fees. Percent-of-payroll fees grow with every raise; flat per-employee fees do not. The low and high scenarios, and how to read a PEO invoice line by line, are on what a PEO costs in 2026.
Benefits of a PEO, and the drawbacks
What works
- Access to the PEO's group health plans, 401(k) and extras such as HSA and FSA.
- One bill for payroll, tax filing, benefits, workers' comp and HR compliance.
- With an IRS-certified PEO, the PEO is the employer for federal employment taxes on the wages it pays (26 USC 3511(a)).
- Staff in several states run under the PEO's state accounts instead of yours.
Watch out for
- Fees several times what payroll software costs: for 10 employees, Justworks PEO is $790 to $1,240 a month against $130 for Justworks Payroll ($50 plus $8 per employee), about 6 to 9.5 times as much.
- Renewal increases: ADP TotalSource reviewers on Capterra report +8% in 2025 (April 2025 review) and +18% in a second year (May 2024 review, more than a year old).
- Bundled invoices: one ADP TotalSource client wrote on Capterra in October 2024, more than a year ago, that "the admin fees are hidden in the workers comp rates."
- Hard exits: plans, 401(k) and tax accounts all move back to you, and exit terms are rarely published.
Buyers split on whether a PEO saves money. One founder in an older Hacker News thread (more than a year old) found TriNet plans about 30% cheaper than Zenefits quotes for the same carrier, while an ADP TotalSource client on Capterra (May 2024) found a better policy at about 75% of the cost on her own. The only test that settles it is your own: the PEO quote for fee, premiums and workers' comp against payroll software plus a broker-placed plan plus your own policy.
PEO vs payroll service vs EOR
| Payroll service | PEO | Employer of record (EOR) | |
|---|---|---|---|
| Legal employer | You alone | You and the PEO (co-employment) | The EOR alone |
| Where it works | Where you have your own company | US staff of your US company | Usually a country where you have no entity |
| Published price | $87 to $400 a month for 10 people | $79 to $125 per employee per month | $199 to $699 per employee per month |
| Benefits | Your own plans, bought through a broker | The PEO's group plans | Statutory benefits in the worker's country, plus extras |
| Best fit | You have decent health quotes and one or two states | You need benefits, workers' comp and HR help in the US | You want to hire abroad without opening an entity |
Sources: provider pricing pages checked Oct 16, 2026, as compiled on our payroll cost, PEO cost and EOR pricing pages.
On published Justworks prices, PEO Plus has to save you about $98 to $107 per employee per month over Justworks Payroll with its health add-on to break even; the math for 5, 15 and 40 employees is in PEO vs payroll service. For staff abroad, a PEO is the wrong tool: read PEO vs EOR and the employer of record hub. If you want HR help without co-employment, four ways to outsource HR covers ASO, HR software and fractional HR, and PEO vs ASO compares the closest alternative.
PEO picks, ranked by score
Ranked by our PEO scores out of 100: price transparency (25 points), benefits access (20), contract and exit terms (20), compliance coverage including IRS certification (15), support (10) and documented complaints (10). The method is on how we score providers. Most PEOs score low on price because they publish none.
Justworks
The only PEO in our scored set that posts its fee: $79 per employee per month on Basic, $124 on Plus, with no setup fee. Costbench, a third-party price tracker, shows Basic at $59 and Plus at $109 in March 2026 snapshots, though it notes the plans were restructured. Health premiums are extra, and support that responds but does not resolve is the most common complaint. Justworks PEO terms and complaints.
How the score adds up
- Price transparency20/25
- Benefits18/20
- Contract and exit8/20
- Compliance13/15
- Support8/10
- Complaints record0/10
TriNet
Quote only, with a minimum headcount and premiums billed on top of the per-employee fee. IRS certified through TriNet HR III-B, Inc. Rejected FSA claims are the top recent complaint, and reviewers report the fee rising every year. TriNet pricing and terms.
How the score adds up
- Price transparency5/25
- Benefits12/20
- Contract and exit7/20
- Compliance13/15
- Support10/10
- Complaints record3/10
ADP TotalSource
Quote only. ADP says workers' comp is included in the service fee and that TotalSource has been IRS certified since 2017. No exit terms are published, and renewal increases are the most common complaint. ADP TotalSource review.
How the score adds up
- Price transparency5/25
- Benefits20/20
- Contract and exit0/20
- Compliance13/15
- Support2/10
- Complaints record4/10
Paychex PEO
Quote only, with third-party estimates of $100 to $250 per employee per month. Paychex does not state a minimum headcount. A secondary source describes a transition fee and an early termination fee when you leave. Paychex PEO costs and exit fees.
How the score adds up
- Price transparency2/25
- Benefits12/20
- Contract and exit3/20
- Compliance13/15
- Support2/10
- Complaints record2/10
Insperity
Quote only. Insperity bills payroll taxes, workers' comp and benefits as direct costs plus a fixed HR service charge per employee that it says "won't increase if you pay your employees more." No contract terms are published. Insperity fee model explained.
How the score adds up
- Price transparency5/25
- Benefits8/20
- Contract and exit0/20
- Compliance10/15
- Support7/10
- Complaints record3/10
The other 10 we score: BBSI 26, Amplify HR 23, ExtensisHR 22, Engage PEO 21, PrestigePEO 20, Questco 20, Sequoia 17, Rippling PEO 11, G&A Partners 8 and Vensure 8. Full scores and the evidence behind each point are in the best PEO companies, with reviews of Rippling PEO, Engage PEO and PrestigePEO.
How to get PEO quotes you can compare
- Send every PEO the same census: headcount, salaries, states, job classes and the plan level you want.
- Ask for an unbundled quote: admin fee, each premium, workers' comp rate per $100 of payroll for each class code, and each payroll tax.
- Ask which SUTA rate applies, the PEO's or your own experience rate.
- Ask for renewal history for clients your size over the last three years, and whether the admin fee is locked.
- Get the termination clause, notice period and any per-employee exit fee in writing. Deel's promo order forms bill the full two-year term if you leave early.
- Plan the exit before you join: who sponsors the 401(k) and health plans when you leave, and how you get W-2s and old tax records.
Leaving guides: Justworks alternatives and how to switch and TriNet alternatives and how to leave. Head-to-heads: Justworks vs TriNet and TriNet vs Insperity. Nonprofits should read PEO for nonprofits, and funded startups payroll and PEO for startups.
When a PEO is the wrong choice
- You already have competitive health quotes from a broker, or you offer no health plan. Payroll software at $87 to $400 a month for 10 people does the rest.
- Your people are outside the US. A PEO co-employs US staff; use an employer of record abroad.
- You run several companies and need them in one account. One TriNet client left for ADP over multiple companies (Capterra, October 2025).
- You cannot absorb a renewal jump. About 10% of 2026 small group rate filings asked for 20% or more (KFF data cited by Nayya).
Price the payroll-only route first in payroll services and software and what payroll services cost, then model the full cost of one hire with the employee cost calculator.
Every PEO page on HRPricing
Reviews, cost pages, state guides and alternatives for PEOs.
- ADP TotalSource reviewADP's PEO: quote-only pricing, workers' comp in the fee, renewals.
- Amplify HR reviewQuote-only PEO for small tech and healthcare teams, on the IRS CPEO list.
- BBSI reviewQuote-only PEO with branch support and workers' comp without deposits or audits.
- Best PEO companies15 PEOs scored on price transparency, benefits, contracts, CPEO status and complaints.
- Engage PEO reviewQuote-only PEO on the IRS CPEO list; most terms not public.
- ExtensisHR reviewQuote-only PEO for 10 to 100+ employees with fast-answer support claims.
- G&A Partners reviewPEO whose site we could not read; CPEO match likely but unconfirmed.
- PEO costPublished PEO fees, dated estimates, and the full bill for a 10-person team.
- Certified PEO listWhich PEOs appear on the IRS active CPEO list, by legal entity name.
- Insperity reviewHow Insperity's fixed fee works, the $425 promo and what to ask.
- Justworks reviewPosted PEO prices, the 2026 increase, complaints and how to leave.
- Justworks alternativesScored alternatives, payroll-only routes and a step-by-step exit plan.
- PEOs in ArizonaNo more state registration, a low $1,600 UI bill for 10, and Questco.
- PEOs in CaliforniaNo state PEO license, SDI and ETT, and what 10 employees cost.
- PEOs in ColoradoA high UI wage base, FAMLI premiums, Denver rules and PEO scores.
- PEOs in FloridaDBPR employee leasing licenses, workers' comp thresholds and a 10-person cost.
- PEOs in IllinoisIDOI employee leasing registration, the 3.35% UI rate and quotes without a sales push.
- PEOs in MichiganLARA licenses, 24 city income taxes and the 2027 jump to $15.
- PEOs in New YorkThe NYS DOL PEO list, a $7,216 UI bill for 10 people, and DBL and PFL.
- PEOs in TexasTDLR licenses, the workers' comp opt-out and a 10-person cost example.
- PEOs in UtahA PEO license under the Insurance Code, a $50,700 UI base and the 2026 tax cut.
- PEOs in WashingtonA monopolistic workers' comp fund, ESD client reports and a $78,200 UI wage base.
- PEO for nonprofitsFUTA, reimbursing employer status and the questions a 501(c)(3) should ask.
- PEO vs payrollFees at 5, 15 and 40 employees, co-employment and the break-even number.
- Paychex PEO reviewQuote-only pricing, 2026 estimates, Oasis and the exit fees to ask about.
- PrestigePEO reviewQuote-only PEO with three IRS-certified entities and almost no public reviews.
- Questco reviewRegional, quote-only PEO on the IRS CPEO list, with Southwest and Plains phone lines.
- Rippling PEO reviewQuote-only PEO on a modular platform; CPEO status not confirmed.
- Sequoia One reviewPEO plus benefits brokerage for investor-backed companies; quote only.
- TriNet reviewQuote-only pricing, the FSA complaints, minimums and how to leave.
- TriNet alternativesScored alternatives, the ASO option and what changes when you leave.
- Vensure reviewQuote-only PEO with 24/7 phone support; CPEO status unconfirmed.
Frequently asked questions
What does PEO stand for?
What does a PEO do?
How much does a PEO cost per employee?
What are the benefits of a PEO?
What is a PEO in insurance?
Is a PEO the same as an employer of record?
Sources (29)
- Justworks: Justworks pricing (checked Oct 16, 2026)
- Remote: Remote pricing (checked Oct 16, 2026)
- Deel: Deel pricing (checked Oct 16, 2026)
- TriNet: TriNet PEO pricing (checked Oct 16, 2026)
- Insperity: Insperity pricing (checked Oct 16, 2026)
- Insperity: Insperity homepage (HR360 credit) (checked Oct 16, 2026)
- ADP: ADP TotalSource PEO (checked Oct 16, 2026)
- ADP: What is the cost of a PEO (updated Jul 14, 2026) (checked Oct 16, 2026)
- Paychex: Paychex PEO (checked Oct 16, 2026)
- BBSI: BBSI pricing (checked Oct 16, 2026)
- Eightx: How much does Paychex cost (Jun 18, 2026) (checked Oct 16, 2026)
- HR.software: Paychex PEO review (May 24, 2026) (checked Oct 16, 2026)
- Costbench: Justworks price increase 2026 (checked Oct 16, 2026)
- Gusto: How to cancel Paychex (Aug 2, 2026) (checked Oct 16, 2026)
- IRS: Active CPEO list (report date 8/7/2026) (read Oct 16, 2026)
- Legal Information Institute: 26 USC 3511 (read Oct 16, 2026)
- Legal Information Institute: 26 USC 7705 (read Oct 16, 2026)
- Texas Department of Licensing and Regulation: PEO general information (checked Oct 16, 2026)
- Florida DBPR: Employee leasing companies FAQ (checked Oct 16, 2026)
- NYS Department of Labor: Registered PEO list (as of 10/1/2026) (checked Oct 16, 2026)
- IRS: Publication 15 (2026) (checked Oct 16, 2026)
- IRS: Topic 759, FUTA (checked Oct 16, 2026)
- Texas Workforce Commission: Unemployment tax rates (checked Oct 16, 2026)
- Capterra: ADP TotalSource reviews, page 4 (read Oct 16, 2026)
- Capterra: TriNet reviews, page 2 (read Oct 16, 2026)
- Trustpilot: TriNet reviews (seen Oct 16, 2026)
- Hacker News: Thread on PEO health plan pricing (read Oct 16, 2026)
- Nayya: The 2026 PEO health insurance squeeze (checked Oct 16, 2026)
- Hacker News: Thread on PEOs vs payroll plus a broker (read Oct 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.