PEO companies in Texas, including Houston: costs and license checks
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A 10-person Texas company pays $790 to $1,240 a month in PEO fees at Justworks, the highest-scoring PEO we track and the only one of our 15 scored PEOs that posts its prices (pricing page checked October 16, 2026). Texas adds unemployment tax of 2.70% on the first $9,000 per new employee, or $2,430 a year for 10 people, and every PEO with even one Texas worker must hold a Texas Department of Licensing and Regulation (TDLR) license.
Houston, Dallas, Austin and San Antonio employers all follow the same state rules: no state income tax, no city wage tax and no state paid leave deduction. The line that moves a Texas PEO quote most is workers' comp, because Texas lets most private employers go without it.
A PEO in Texas is a professional employer organization licensed by TDLR under Texas Labor Code chapter 91 that co-employs your staff and runs their payroll, taxes and benefits.
On this page
Check the TDLR license before you sign
Texas Labor Code chapter 91 requires a license for any company offering professional employer services in the state, and section 91.061 bars a business from calling itself a PEO, or claiming to be licensed, without one. The license applies even if the PEO covers a single employee in Texas.
TDLR gives you two ways to check. Its license search looks up one company. Its bulk files list every PEO license holder as a CSV, split into regular and limited licenses; when we looked, the PEO files showed a last update of September 14, 2026.
- Search the legal entity name printed on your service agreement, not the brand. Brands contract through subsidiaries, such as TriNet HR III-B, Inc. on the IRS certified list.
- Match the license number to the entity that will appear on your employees' W-2s.
- Save a dated screenshot. TDLR also posts a PEO sanctions list.
We did not match the PEOs below against the TDLR file, so their Texas status is "not confirmed" until you run the search. IRS certification is a separate federal status; our list of IRS-certified PEOs covers it.
Workers' comp: the Texas choice that changes the quote
Most private Texas employers may opt out of workers' compensation. Those that do (non-subscribers) must tell the state through the Texas Department of Insurance, Division of Workers' Compensation Employer E-File system and report qualifying injuries. Joining a PEO usually ends that choice:
- Justworks lists workers' comp as "Required for PEO" on its pricing page.
- ADP says TotalSource includes workers' comp in its service fee.
- Paychex assigns a safety specialist to clients on its PEO master workers' comp policy.
- BBSI bills payroll-based premiums "with no deposits or year-end audits."
If you are a non-subscriber today, a PEO proposal carries a cost you are not paying now. Ask for the workers' comp premium as its own line, with the class codes and rate per $100 of payroll. One ADP TotalSource reviewer on Capterra (October 23, 2024, a review more than a year old) wrote that the admin fees were hidden in the workers' comp rates. A bundled number makes that impossible to see.
PEOs that serve Texas, ranked by score
Justworks leads at 67 out of 100, mainly because it publishes a price and has no setup fee. TriNet (50) and ADP TotalSource (44) quote only. All three run multi-state payroll without a published state list, so get Texas coverage in writing.
| PEO | Score | Published price | On IRS CPEO list (Aug 7, 2026) | Texas coverage |
|---|---|---|---|---|
| 1. Justworks | 67 | $79 to $124 per employee per month | Yes (Justworks Employment Group LLC and 3 related) | Not confirmed: Multi-state stated, no state list |
| 2. TriNet | 50 | Quote only | Yes (TriNet HR III-B, Inc.) | Not confirmed: Multi-state stated, no state list |
| 3. ADP TotalSource | 44 | Quote only | Yes (ADP TotalSource, Inc. and related) | Not confirmed: Multi-state stated, no state list |
| 4. Paychex PEO | 34 | Quote only | Yes (Paychex PEO VI LLC, VII, Oasis HR Solutions III) | Not confirmed: Multi-state stated, no state list |
| 5. Insperity | 33 | Quote only | Yes (Insperity PEO HR, Inc.; Insperity PEO Services, L.P.) | Not confirmed: Not stated |
| 6. BBSI | 26 | Quote only | Not found | Not confirmed: Multi-state support, no state list |
| 7. Amplify HR Management | 23 | Quote only | Yes (Amplify HR Management, LLC) | Not confirmed: Not stated |
| 8. ExtensisHR | 22 | Quote only | Yes (Extensis Inc. and 5 related) | Not confirmed: "Across the country", no state list |
| 9. Engage PEO | 21 | Quote only | Yes (Engage PEO, LLC) | Not confirmed: Not stated |
| 10. PrestigePEO | 20 | Quote only | Yes (3 Prestige entities) | Not confirmed: "National", no state list |
| 11. Questco | 20 | Quote only | Yes (QUESTCO HR LLC) | Not confirmed: lists a Texas regional phone line; "from Arizona to Nebraska and beyond", no state list |
| 12. Sequoia One | 17 | Quote only | Yes (Sequoia One PEO, LLC) | Not confirmed: Not stated |
| 13. Rippling PEO | 11 | Quote only | Not found under the Rippling name | Not confirmed: Not stated |
| 14. G&A Partners | 8 | Not verified | Likely match, unconfirmed | Not confirmed: Not verified (site blocked) |
| 15. Vensure | 8 | Quote only | Not found under the Vensure name | Not confirmed: Not stated |
Scored October 17, 2026 by HRPricing.com (method). Texas coverage, prices: PEO websites read October 16, 2026. CPEO column: IRS active list dated August 7, 2026.
Evidence for each number is in the Justworks PEO review, the ADP TotalSource review and our national PEO ranking.
What 10 Texas employees cost through a PEO
Texas has one state payroll tax line for employers. The example assumes 10 employees on $50,000 each, new to Texas unemployment tax.
| Cost line | How it is figured | Per year |
|---|---|---|
| Justworks PEO Basic fee | $79 x 10 employees x 12 months | $9,480 |
| Justworks PEO Plus fee | $124 x 10 employees x 12 months | $14,880 |
| Industry admin fee range (estimate) | $40 to $160 x 10 x 12 (ADP guide, July 14, 2026) | $4,800 to $19,200 |
| FUTA | 0.6% net x first $7,000 x 10 | $420 |
| Texas SUTA (TWC) | 2.70% new employer rate x first $9,000 x 10 | $2,430 |
| Justworks fee plus unemployment and state program taxes | Basic or Plus fee + FUTA and Texas SUTA ($2,850 together) | $12,330 to $17,730 |
| Employer FICA (owed with or without a PEO) | 7.65% x $50,000 x 10 | $38,250 |
| All-in with Justworks, before health premiums and workers' comp | Line above + employer FICA | $50,580 to $55,980 |
| All-in at the industry fee range | $40 or $160 fee + all taxes above | $45,900 to $60,300 |
Fees: Justworks pricing page, Oct 16, 2026. Range: ADP's July 14, 2026 guide (an industry figure, not an ADP price). Texas UI: TWC 2026 rates; we did not confirm whether TWC's 2.70% already includes the Employment and Training Investment Assessment. Texas has no state income tax, disability or paid leave payroll program.
Health premiums and workers' comp are left out because they depend on your quote. TriNet says it does not publish list pricing and uses $150 per employee per month only as an illustration; at that figure the fee alone would be $18,000 a year for 10 people. For how admin fees, premiums and pass-through taxes stack up, see what a PEO costs per employee.
Texas payroll rules your PEO takes on
- Unemployment tax: TWC rates run from 0.32% to 6.32% on the first $9,000. TWC computes 2027 rates on October 1 and mails notices in December.
- Minimum wage: $7.25, the federal rate; tipped cash wage $2.13.
- Paydays: at least twice a month for non-exempt staff, monthly for FLSA-exempt staff.
- Final pay: within 6 calendar days of a firing or layoff; by the next regular payday after someone quits.
- New hires: reported within 20 days of the first day on the job.
Our Texas payroll tax guide has the full rate table and agency links.
Questions to ask a Houston or Texas PEO
- What is the exact legal entity on the contract, and what is its TDLR license number?
- Is that entity on the IRS active CPEO list, and which entity files our federal payroll taxes?
- We are a non-subscriber today. What does your required workers' comp cost, by class code?
- Will Texas unemployment tax run under your TWC account or ours, and who receives the December rate notice?
- Which health networks do you offer around Houston, Dallas or Austin?
- What notice do you require to leave, and is there an exit or transition fee?
Leaving a Texas PEO
Exit terms are the least published part of any PEO deal. Paychex does not post its terms; a competitor's guide from Gusto (August 2, 2026) says Paychex PEO clients need written notice by mail with proof of delivery and may owe a transition fee and an early termination fee.
One federal rule helps if your PEO is IRS-certified: the CPEO is treated as a successor employer, so Social Security and FUTA wage bases do not restart when you join or leave mid-year. If you plan to drop the PEO and keep only payroll, compare the two models first with our PEO vs payroll service comparison.
Frequently asked questions
Do PEOs need a license in Texas?
How much does a PEO cost for a Houston business?
Can I stay a workers' comp non-subscriber if I join a PEO in Texas?
What is the Texas new employer unemployment tax rate for 2026?
Which PEO scores highest for Texas employers?
Sources (16)
- Justworks: Justworks pricing (PEO Basic and PEO Plus) (checked Oct 16, 2026)
- TriNet: TriNet PEO pricing (checked Oct 16, 2026)
- ADP: What is the cost of a PEO (updated July 14, 2026) (checked Oct 16, 2026)
- IRS: Active certified PEO list (report date Aug 7, 2026) (checked Oct 16, 2026)
- Texas Department of Licensing and Regulation: PEO general information (checked Oct 16, 2026)
- Texas Department of Licensing and Regulation: PEO license search (checked Oct 16, 2026)
- Texas Department of Licensing and Regulation: All PEO license holders (CSV) (last update shown Sep 14, 2026)
- Texas Workforce Commission: Unemployment tax rates (checked Oct 16, 2026)
- Texas Department of Insurance: Workers' compensation: employer resources (checked Oct 16, 2026)
- Texas Workforce Commission: Final pay (checked Oct 16, 2026)
- ADP: ADP TotalSource PEO (checked Oct 16, 2026)
- Paychex: Paychex PEO (checked Oct 16, 2026)
- BBSI: BBSI pricing (checked Oct 16, 2026)
- Capterra: ADP TotalSource reviews, page 4 (checked Oct 2026)
- Gusto (competitor guide): How to cancel Paychex (Aug 2, 2026) (checked Oct 16, 2026)
- IRS: Certified professional employer organization (checked 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.