The Best PEO Service Providers for 2022 | Fortunly (2023)

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The Best PEO Service Providers for 2022 | Fortunly (1)

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The Best PEO Service Providers for 2022 | Fortunly (2)

Written By

G. Dautovic


February 17,2022

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A professional employer organization or PEO typically offers an all-in-one solution for HR, payroll management, health benefits, regulatory compliance, and other administrative business tasks. Business owners choose to outsource these time-consuming tasks so they can focus on running their businesses more efficiently.

However, there are hundreds of PEOs in the US, and choosing the right one for your business can be challenging. That’s why the Fortunly team did the research and created a list of the best PEO companies.

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The Best PEO Service Providers for 2022 | Fortunly (3)


Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

  • Employee self-service system
  • HR professional support
  • Retirement and health plans

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The Best PEO Service Providers for 2022 | Fortunly (4)


Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

  • Available in all 50 states + D.C.
  • Intuitive and easy to use
  • Human support 24/7

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The Best PEO Service Providers for 2022 | Fortunly (5)


Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

  • Scalable online HR solutions
  • HR-related compliance, admin, and payroll
  • Risk management

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The Best PEO Service Providers for 2022 | Fortunly (6)

ADP TotalSource

Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

  • Powerful mobile app
  • Easy-to-use PEO program
  • Works with different industries

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(Video) Concurrent HRO The Best PEO Services Nationwide

The Best PEO Service Providers for 2022 | Fortunly (7)

Amplify PEO

Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

  • Dedicated HR team and retirement planning
  • Detailed payroll reports
  • Attendance reports to predict needs of operations

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The Best PEO Service Providers for 2022 | Fortunly (8)

Infiniti HR

Our Rating

Fortunly's Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

  • Full suit of HR services
  • Easy-to-navigate software
  • Recruitment service

Detailed Reviews of PEO Services


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The Best PEO Service Providers for 2022 | Fortunly (10) Pros

  • IRS-certified
  • Full or individual services
  • Mobile app

The Best PEO Service Providers for 2022 | Fortunly (11) Cons

  • No option to suspend service
  • Outdated interface

Paychex is a leading provider of PEO services. The company has been operating since 1971 and has more than 700,000 clients in the US and Europe. Paychex can accommodate businesses of all sizes, helping them with back-office tasks and payroll. In addition to advanced HR solutions, Paychex offers a wide range of other services, including employee benefits, business PEO insurance, employee time tracking, and more.

With Paychex, you’ll get access to a comprehensive software solution for managing your team, as well as instant human support whenever you need it.

Ease of Use

Paychex PEO software is designed to help you with three main business needs: HR administration, payroll, and benefits. Within these broad categories, Paychex offers time tracking and attendance tools, as well as an employee self-service system that helps improve HR efficiency.

Functionality is another one of Paychex’s strengths. Although the interface feels a little outdated and can use some improvements, all the features and tools offered through this dashboard are highly functional and easy to use.

The key sections are clearly displayed and easily accessible, including an HR section, payroll services, employee benefits, and more. You can access your payroll reports through the dashboard, with all of the payroll records neatly organized. This flexible PEO platform enables you to enter your payroll in just two clicks. It also ensures that calculating, filing, and paying your payroll taxes are effortless processes.

Furthermore, the dashboard allows you to post job openings on social media and career sites. The HR section features great tools that will help you simplify the recruiting and onboarding processes.

Business Solutions and Pricing Plans

Paychex allows business owners to choose a solution depending on the size of their operation. It offers scalable plans that can service small companies, solo entrepreneurs, mid-sized businesses, and large corporations with thousands of employees.

When it comes to its PEO fees, the Paychex Flex Essentials plan costs $39 per month and an additional $5 per employee. The two other plans, Paychex Flex Select and Paychex Flex Pro, are custom-based, and you’ll need to get a quote from the sales team. The custom plans add a few advanced features such as a dedicated payroll specialist and additional employee pay options.


The powerful Paychex platform provides payroll processing, HR tasks, compliance, and benefits all in one place. One of the best things about Paychex is that it offers dedicated HR support. Actual HR professionals are available 24/7 via the app, live chat, or phone support to help you to hire, manage, retain, and even terminate employees.

Moreover, the company helps determine the employee benefits that fit your business and enables you to stay compliant with changing laws and regulations. But that’s not all. With time and attendance tracking, your business can maximize payroll accuracy, and the 401(k) and retirement functions help employees reduce taxable income and grow their savings.

We’ve already touched on another great PEO system, the employee self-service tool. This allows staff members to perform HR-related tasks without filing paperwork or even contacting the HR department. Employees can add dependents, choose their benefits, and review performance evaluations. In addition to improving overall efficiency, the self-service portal allows for a better allocation of company resources.

User Reviews

Beyond the slightly outdated interface, Paychex is widely applauded for its user-friendly service. A number of users have also echoed our satisfaction with the company’s security procedures.

However, other user reviews only serve to confirm some of the negative aspects we’ve identified. The company’s overall score on Trustpilot is diminished by customers who complain about the unresponsiveness of the customer support team. But it’s important to remember that this might be the result of COVID-19 restrictions and may soon be remedied. On BBB, Paychex has an A+ rating.

Customer Support

This PEO provider offers round-the-clock U.S.-based customer support, and its team is accessible by phone.

Other support options include guides, podcasts, and webinars that you can access on the Paychex site. There are also online lessons and tutorials to help with the adoption of Paychex employee self-service tools.

Our Opinion

Paychex’s key strength is its all-in-one HR software and service solution. It’s designed to help you simplify all the administrative and HR tasks of your business. One notable advantage is that your employees will also be able to access the software through the self-service portal, whether they are in the office or working remotely.

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(Video) ADP TotalSource: Full-Service HR Outsourcing and PEO

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The Best PEO Service Providers for 2022 | Fortunly (13) Pros

  • Plethora of customer support options
  • Integration with third-party accounting software
  • Basic plan includes tax-filing services

The Best PEO Service Providers for 2022 | Fortunly (14) Cons

  • Limited reporting features
  • Medical and dental insurance available only with the high-tier plan

The next name on our list of the best PEO providers is Justworks. Accredited by the Employer Services Assurance Corporation, Justworks PEO offers a range of services that are designed to help businesses grow.

The company specializes in assisting small businesses and startups with administrative tasks, including payroll, HR services, employee healthcare, and benefits. The service includes expert support from real people.

Justworks provides its services in all 50 states, and its team ensures your business stays compliant with all federal, state, and local regulations.

Ease of Use

Justworks is a cloud-based software solution that provides payroll, HR services, benefits, and compliance support all under one roof. Like other PEO programs, Justworks is designed to allow business owners to streamline payroll and other employee-related tasks and focus on other critical aspects of their businesses.

With this software, everything is just a few clicks away. As soon as you sign in, you’ll be asked to choose your employee coverage and set a date for a payroll. You’ll also get dedicated manager support to help you with onboarding.

Justworks has a very simple user interface. The left side of the dashboard displays four main software functionalities: Payroll, Benefits, HR, and Compliance. The payroll system is automated. You can set up the payment method for your employee, choose the amount and payment type. Furthermore, Justworks integrates seamlessly with accounting software products, like Quickbooks or Xero.

Business Solutions and Pricing Plans

Justworks offers two PEO plans: Basic and Plus. Both are customizable to accommodate a different number of employees. The Basic plan includes standard features, like PEO payroll tax filings, HR services, and compliance support. The Plus plan has all of the basic features while adding a few more perks like medical, dental, and vision insurance.

These two Justworks pricing plans are divided into a further four categories: less than 25 employees, 25-99 employees, 100-175 employees, and more than 175 employees. Of course, the price depends on the number of employees. For example, the Basic plan for a company with 25-99 employees is $44 per month per employee.


So what do you get for your money? First of all, Justworks offers extraordinary PEO support for payroll. The software allows you to set up direct deposit payroll, track working hours, set automated reminders, and manage schedules. You can also schedule both weekly and bi-weekly payments and pay your workers through different bank accounts. Moreover, the system supports payments for all types of workers - full-time employees, contractors, hourly employees, etc.

The software also offers a wide array of HR tools that will simplify the hiring and onboarding process. Perhaps more importantly, Justworks offers round-the-clock access to professional HR consultants that will help you figure out what’s best for your team. The only notable downside is that Justworks’ reporting tools are only available with the more expensive Plus plan.

User Reviews

Many online Justworks reviews share our satisfaction with the company’s services, which meet basic PEO industry standards. For most customers, the software’s ease of use is one of the most critical factors as it simplifies operations for both employees and managers. A large number of users are also thrilled with the provider’s support team.

Customer Support

The level and quality of support are key selling points at Justworks. Whether you need assistance with payroll management or human resource support, Justworks responds swiftly. The company’s teams are available 24/7 through different communication channels, including Slack, SMS, email, phone, and live chat.

Our Opinion

Justworks is an excellent solution for small businesses, allowing them access to PEO benefits that are generally reserved for larger companies. Although the provider offers packages for companies with more than 175 employees, it can also accommodate those with less than 25 workers.

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The Best PEO Service Providers for 2022 | Fortunly (16) Pros

  • Full-service HR for just five employees
  • Huge base of online materials
  • iOS and Android app

The Best PEO Service Providers for 2022 | Fortunly (17) Cons

  • Website is hard to navigate
  • Lack of pricing information

Founded in 1986, Insperity is one of the best PEOs on the market. Formally known as Administaff, the company started out with a small team and focused on strengthening businesses by harnessing the power of HR. During the last few decades, this provider grew into one of the biggest PEOs, with more than 70 offices throughout the US.

Thanks to its comprehensive service that covers human resources, payroll, and benefit solutions, Insperity has a long list of clients. One of the biggest advantages of doing business with Insperity is that you’ll get customized services that fit your individual business needs.

In addition, the company assigns a dedicated team of HR professionals to every client.

Ease of Use

Like other PEO solutions, Insperity relieves businesses from time-consuming HR and payroll tasks. The provider has a well-organized, cloud-based platform that you can access from any device.

And while it doesn’t have the most appealing UI, it’s definitely convenient to use. Even if you haven’t used similar products before, it won’t be hard to fit Insperity into your business ecosystem. You can log in to your Insperity PEO service account from your desktop or mobile phone. Your employees should also be able to use the platform and adopt it quickly. The employee self-service portal allows instant access to paystubs, benefits, and tax forms.

The Insperity software is cloud-based, meaning that your business information is stored on remote servers. This guarantees more protection and security for employee data. There's also a 2FA security layer for additional protection.

Business Solutions and Pricing Plans

Insperity offers highly scalable business solutions, including a full PEO HR solution for businesses with 5 to 149 employees and PEO for companies with 150 to 5,000 employees. Whether you’re operating a small business or a large company, Insperity has you covered. Unfortunately, self-employed entrepreneurs and startups with less than five workers can’t apply for the Insperity services.

It’s important to note that you’ll need to sign a two-year contract with Insperity. This is how long the company needs to gain an understanding of how your business works and how it should be managed.

Insperity doesn’t offer pricing online. It assigns a team of experts to assess the needs of individual businesses and comes up with custom pricing models.


Insperity is one of the top PEO companies, and as such, offers HR and payroll management services, in addition to employee benefits and compliance solutions.

If you’re concerned about staying up to date and maintaining compliance with the latest employment laws and regulations, Insperity is a great option. It offers risk mitigation and compliance solutions, with a team of well-versed experts constantly keeping an eye on any state, local, and federal law amendments. Before you hire a new employee, the Insperity team of HR specialists will do a comprehensive background check and provide you with an expert review of every candidate.

Another great thing about the national PEO services provided by Insperity is that you can get payroll reports within a minute. All you have to do is log into your account via desktop or mobile and request the latest payroll data.

User Reviews

Insperity’s overall score on Trustpilot is 3.7, while on BBB, it has an A+ rating. The existing clients applaud Insperity for its easy-to-use dashboard and experienced HR specialists. Online Insperity reviews underscore the affordability of the service for all business sizes.

Customer Support

In addition to comprehensive HR support, Insperity also offers a wide range of free online materials. The Insperity website is packed with online guides, articles, webinars, and magazines. You can learn about the latest HR policies, employee management, HR outsourcing, and more.

Our Opinion

It’s not uncommon for PEO companies to offer exclusively custom pricing information. By doing so, Insperity ensures that you don’t end up paying for features you don’t need. The plans are designed to bring about administrative relief, reduce liabilities, and give employees better benefits at affordable prices.

The UI isn’t always the easiest to navigate, but Insperity is still near the top of our list thanks to its flawless HR services, an unprecedented level of personal attention, and other features that allow you to focus on identifying the next business opportunity.

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ADP TotalSource

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(Video) The HealthPass NY PEO - New Products and Services for 2022

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The Best PEO Service Providers for 2022 | Fortunly (19) Pros

  • IRS-certified
  • Fortune 500 caliber benefits

The Best PEO Service Providers for 2022 | Fortunly (20) Cons

  • Poor customer service

Founded in 1984, ADP offers both local and international PEO services. It’s a reputable company that has been among Fortune Magazine's World’s Most Admired Companies for the last 15 years.

ADP is a professional employment organization for all business sizes and types. It offers professional HR management, payroll, employee benefits, compliance solutions, talent sourcing, and tax filing. ADP is IRS-certified and accredited by Employer Services Assurance Corporation, meaning that your business is in safe hands. The provider also claims they use the highest security measures to safeguard user information.

ADP services are available globally. The company operates in the US and in more than 140 countries. That makes this company an ideal option for those who do business in more than one country.

Ease of Use

ADP is one of the top PEO providers that helps you manage administrative tasks. ADP TotalSource is an all-in-one product for payroll, HR services, employee benefits, and compliance. Simply put, this HR software is designed to cover all your employee-related business needs.

ADP TotalSource is easy to use. The program doesn’t require any complicated installation on your office computers. Everything can be done online with the support of a dedicated HR specialist. Your employees also get access to the ADP TotalSource program enabling them to check pay stubs, sign up for health benefits, review their working hours, and more.

Regardless of the device or operating system you use, you’ll get to enjoy a modern, intuitive interface. The PEO solution enables both managers and employees to download a mobile app and stay on top of everything that’s happening, including changing legislation.

Business Solutions and Pricing Plans

ADP is a great solution for all types of businesses. This provider works with different industries, including finance, retail, healthcare, construction, education, manufacturing, tech, and NGOs. In other words, you’re getting experienced support that is specialized for your area of business.

ADP doesn’t show pricing plans on its website. Instead, you’ll need to contact ADP agents to get a custom quote. Like other PEO firms, ADP determines the overall cost based on your company’s size, geographic location, and the services you sign up for. It also offers many a la carte, such as employee information tracking and a vault for sensitive documents.


ADP’s intuitive, easy-to-use program comes with tools for managing tax-related tasks. You can also request quarterly and annual payroll reports through the online dashboard. Furthermore, the program is equipped with time tracking and attendance tools.

When it comes to PEO HR solutions, the ADP program enables you to use hiring and onboarding tools and grants users access to professional HR consultants.

The provider offers Fortune 500-level benefits, meaning that your employees will enjoy medical, dental, and vision insurance, as well as a 401(k) plan.

User Reviews

ADP is one of the most reputable PEOs. On BBB, it enjoys an A+ ranking. It has a 3.1 overall score on Trustpilot, but there are also dozens of negative reviews about this provider’s customer support. Also, many users claim they faced issues with payroll and that there were lots of inaccuracies the provider didn’t help them resolve.

Customer Support

This PEO firm is proud of its customer support team despite a few online user reviews that suggest there is room for improvement. From our experience, the support team was polite and responded quickly to our questions. You can contact the support team by phone, email, and live chat.

Our Opinion

ADP’s IRS certification is reassuring. For business owners, this is important because it guarantees that all federal, state, and local taxes are properly filed. In addition to the excellent tax filing services, ADP’s main selling point is its technology. The PEO program is intuitive and easy to use. There’s also a mobile app that allows you to manage payroll, benefits, and compliance any time you want.

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Amplify PEO

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The Best PEO Service Providers for 2022 | Fortunly (22) Pros

  • Tax calculation and filling
  • Detailed payroll reports
  • Employee self-service

The Best PEO Service Providers for 2022 | Fortunly (23) Cons

  • Lacks mobile app

Amplify is another big name on our list of PEO companies that offers custom-made PEO solutions for businesses of all types and sizes. Whether you need a team of HR experts to help you with hiring, onboarding, and benefits, or you just want to streamline your payroll, Amplify is a great choice.

The provider prides itself on its professional HR support. Its experts work closely with every client to ensure their business needs are met. Amplify helps with HR management, payroll, health insurance, and 401(k).

Moreover, it provides an excellent risk management service. The company also claims that it can help businesses save an average of $1,185 per employee every year. This is already a good reason to consider Amplify as your PEO company. Let’s see what else this provider has to offer.

Ease of Use

Like other PEO businesses, Amplify’s main goal is to streamline administrative tasks so you can focus on growth and opportunities. That’s why Amplify created an all-in-one PEO program that takes care of every employee-related component - screening, hiring, and retiring.

The program is cloud-based and comes with modern HR technology features. In addition to protecting the private information of your employees, the software can also be useful for businesses that already have an HR department. It helps the team automate payroll, manage new workers, track working hours, and more.

Meanwhile, Amplify’s PEO payroll services extend to administration and paycheck distribution as well as W-2 preparation. Employees can choose different benefits packages and review payroll documentation.

Business Solutions and Pricing Plans

Amplify doesn’t have a pricing list on its website. The only way to find out about the costs is to contact support. The representatives will ask you about your company’s size and the services you want to purchase. Based on these and other factors, they’ll come up with a quote.

Amplify is a good solution for small and mid-sized businesses, allowing them to get custom-made packages at an affordable price. This provider collaborates with many companies nationwide, and your employees can enjoy benefits that are generally afforded to large companies.


Of course, the selection of HR tools depends on the PEO plan you choose. The provider allows you to purchase a full HR and payroll services package, but you can also get these services a la carte.

Amplify is arguably best known for its experienced HR professionals. They are well versed in multiple industries and have experience in working with different types of businesses. You’ll get an agent who specializes in managing businesses similar to yours.

Furthermore, Amplify offers benefits solutions that include medical, dental, and vision plans. Clients also get risk management and compliance services that cover everything from workers' compensation to employment practices liability insurance.

User Reviews

When considering Amplify’s PEO pros and cons, we also looked at what its clients have to say about the PEO service. Generally, Amplify’s current clients are most satisfied with HR and payroll professionals. When a problem occurs, they can easily contact a dedicated HR expert and get answers from an actual person.

The downside with this provider is its mysterious pricing system. It doesn’t offer pricing information, which means that you’ll need to spend some time in direct communication with the representative to get a quote for your business needs.

Customer Support

When it comes to Amplify customer service, you can reach agents via phone, email, or by filling an online form on the website.

Unlike many other PEO organizations, Amplify doesn't offer much in the way of online materials. There are no guides, articles, or other content to help you understand what PEO services are.

Our Opinion

Overall, Amplify is worth a try if you need dedicated round-the-clock HR support. You will be able to speak with your dedicated HR professional whenever the need arises. Another significant advantage is the company’s strategic approach that can help with revenue generation and cutting costs.

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Infiniti HR

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(Video) How The Best PEO for Your Business Do The Actual Work

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The Best PEO Service Providers for 2022 | Fortunly (25) Pros

  • Great for enterprises
  • Personalized services
  • State-specific HR management

The Best PEO Service Providers for 2022 | Fortunly (26) Cons

  • Lacks pricing transparency

Formed in 2008 by Scott Smrkovski and Mark Schwaiger, Infiniti HR is one of the largest PEO companies on the market. Specializing in customizable HR and payroll services for franchises, the company has many clients in the hospitality sector, including Best Western, Hyatt, and Choice Hotels International. Infiniti HR is best known for helping businesses with payroll, employee management, benefits, and risk management, among other tasks.

This PEO company works in all 50 states. In 2014, Infiniti launched its first software solution for streamlining HR and payroll tasks. The best thing about this provider is that it allows you to choose which services you want to outsource and which stay under your command. You can always choose a full-HR service model and allow Infiniti HR to take care of payroll, HR, compliance, and benefits.

Ease of Use

Like other top PEOs, the Infiniti HR ecosystem manages payroll, benefits, compliance, attendance, and other employee-related tasks. The software is easy to use and feature-rich. It is praised for its excellent performance and speed. The program includes tools for streamlining payouts and simplifying time-consuming HR tasks.

Business solutions and pricing plans

Infiniti HR and payroll services are available for all business sizes and types, but this company is especially famous for providing PEO perks to franchises and big hotels.

One of the best things about Infiniti HR is that it allows clients to apply for customized PEO options. You don’t need to use full-HR support. Instead, you can personalize services depending on the level of support you need.

For example, if your company already has a well-coordinated and efficient accounting system, you might not use Infiniti payroll support. The company will charge you for services that you actually need. This kind of flexibility is especially important for large companies.


Infiniti is the best choice for businesses that want to outsource human resource services. The company provides full-HR support for anything you need - from creating employee onboarding guides to helping you manage your employees while reducing costs and risks.

As one of the largest PEOs, Infiniti HR covers a range of employee benefits, including Infiniti health, dental, vision, and life insurance. It also handles unemployment claims and benefits, accident insurance, and more. Part of the service extends to the recruiting process and helps clients attract and retain the most talented individuals.

User Reviews

User reviews only serve to confirm our positive assessment of Infiniti’s intuitive and easy-to-use software. The software is fast and regularly updates information on employees. Clients are also satisfied with the company’s customer support.

And as is the case with some of the market’s best PEO services, Infiniti HR has an A+ rating on BBB.

Customer Support

One of the things that we like the most about this provider is its customer service. Even if you are not an Infiniti HR client, your questions will be answered immediately. The representatives answer quickly via phone and live chat.

Our Opinion

As far as we’re concerned, Infiniti HR should be on your list of choices for PEO. It’s one of the most reputable companies for managing human resource tasks. Large companies and enterprises will benefit the most from this provider.

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The Best PEO Service Providers for 2022 | Fortunly (27)

Quick Breakdown

Best PEO companies for 2022:

  • Paychex - Best overall

  • Justworks - Best live support

  • Insperity - Best for small businesses and startups

  • ADP Total Source - Best for benefits

  • Amplify PEO - Best for professional HR services

  • Infiniti HR - Best for franchises and hotels

What Is a PEO?

PEO stands for professional employer organization. PEO uses a co-employment type of approach to help businesses with administrative tasks and handling employee-related responsibilities. By employing a PEO service, businesses choose to outsource time-consuming and expensive responsibilities, like HR, payroll, compliance, and more.

Although it’s usually referred to as HR outsourcing, PEO differs from HR-only services. The top PEO companies provide the following support for businesses:

  • HR services
  • Payroll management
  • Employee benefits
  • Risk management
  • Talent sourcing and development
  • Employee onboarding and training

PEO is a cost-effective service for human resources and administration. It’s a fast-growing industry with over 700 PEOs in America and between 2.7 and 3.4 million workers. Some companies operate solely in the US, but there are also global PEO services. Businesses operating in different corners of the world use PEOs because these services help them stay up to date with labor laws and regulations that differ from country to country.

Why Should You Use PEO?

There are many reasons why businesses choose to outsource HR and payroll responsibilities. For starters, this guarantees accuracy and that everything is completed on time. Many business owners, especially those just starting out, are not familiar with all employee-related liabilities and regulations.

This is why businesses choose to outsource payroll, worker’s compensation, and benefits tasks rather than deal with these on their own.

A PEO for a small business can also help you save money. Instead of hiring in-house HR and administrative workers, businesses can get a team of professionals for a reasonable price. Furthermore, your company gets experts in their field who can train your employees and allow you to focus on growing your business.

Meanwhile, your employees get access to great benefits and medical plans. For small business owners, this is an excellent way to offer their workers benefits at lower rates that are usually reserved for large companies and enterprises.

However, even the best PEO service providers are not suitable for all businesses. This type of approach might be inadequate for some businesses. First of all, PEO means that an outside firm will have an impact on your company’s culture.

The crucial business processes, like payroll and HR tasks, will be delegated to someone else, so you’ll eventually be disconnected from your workers' problems and needs.

And if you plan to have an internal team of HR experts in the future, it will be hard to switch from one business model to another. Finally, many workers find this method of managing essential business processes unreliable.

Choosing PEO

It’s important to consider all professional employer organization pros and cons before pulling the trigger on any service. But if you decide to use PEO, the next step is to find the perfect partner. Since there are so many companies on the market, it’s easy to get confused when looking for one.

First of all, think about why you need PEO. Do you need a one-time HR service, or do you want to outsource all HR responsibilities, including payroll? The providers we evaluated offer a wide range of services that you can combine to fit your business needs.

For example, if you’re doing bookkeeping on your own, you may not need anything more than help with creating employee manuals. The best PEO for startups will provide you with this service a la carte.

Another thing you should have in mind is your company size and the type of business you run. There’s no one perfect PEO for all business types, so make sure you’re familiar with what the PEO firm offers before purchasing their services. Some providers specialize in managing payroll and HR for large companies and aren’t suitable for small businesses.

Although it’s already an industry-standard feature, check if a PEO company offers an employee self-service system. This enables your employees to access their profiles, check pay stubs and benefits. Allowing your employees to see their payments and productivity is crucial for your company’s integrity.

Speaking about worker satisfaction, the best global and local PEO providers should cover affordable benefits, like health, dental, and vision insurance and retirement plans. The better the employee benefits, the more talented the workers.


What is the best PEO company?


There’s no one size fits all PEO company, so choosing the best one depends on your business needs. The companies we evaluated are all reputable and with years of experience in managing payroll, HR, benefits, and compliance. Think about what your business needs, and then get in touch with PEOs to get a quote.

What is the largest PEO?


There are many large global PEO companies. The largest ones in the US are ADP TotalSource and Infiniti HR.

What is the downside of a PEO?


Before you employ the services of a PEO, remember that your essential business processes are in the hands of outsiders, and you’re allowing the PEO to impact your business culture. If you decide to outsource HR and payroll services, your employees might respond negatively to such an approach.

Is PEO legal?


Yes, PEO is legal. The best PEO companies are accredited by the ESAC and IRS.

(Video) Explore PEO Human Resource Management and top PEO Payroll Services


Who is the strongest PEO? ›

The 7 Best PEO Services of 2023
  • Best Overall: Paychex.
  • Best for Small Businesses: Insperity.
  • Best for Large Businesses: INFINITI HR.
  • Best for Startups: Oasis Outsourcing.
  • Best Customer Service: ADP TotalSource.
  • Best for Industry-Specific Services: TriNet.
  • Best for Benefits: Justworks.

Who are the largest PEOs? ›

According to Yahoo Finance, ADP is the largest PEO in the US, with more than 400,000 worksite employees. They are also estimated to generate about $192.42 million in sales.

Who is a good fit for PEO? ›

20-75 Employees

This is a PEO's sweet spot. When a business has 20-75 employees, a full-service PEO can do everything it is made to do for a client.

Is Paychex a good PEO? ›

Paychex is certified by the IRS and accredited by the Employer Services Assurance Corporation and the Better Business Bureau, with an A+ BBB rating. For these reasons, Paychex is our pick for the best PEO service for midsize businesses and the best HR outsourcing service for small businesses.

Is Paychex 2nd largest PEO? ›

Serving 1.7 million worksite employees through HR outsourcing (ASO and PEO), Paychex is the industry's second largest PEO. In addition, the Paychex Insurance Agency is among the 30 largest insurance agencies in the U.S., based on revenue, according to Business Insurance magazine.

How many PEOs are there in the US? ›

In the U.S., there are between 708 and 980 PEO's currently operating and providing services. (Napeo) PEO's are providing services to between 156,000 and 180,000 small and midsize businesses.

What percentage of payroll does a PEO charge? ›

PEO fees can differ, but they typically charge based on the number of employees you have, and which services you are using, so be sure to get quotes for comparable services. Industry experts estimate average PEO costs at between 2-12% of wages.

Which is the largest employment provider? ›

The primary sector employs the largest portion of the Indian population. The primary sector predominently comprises the agricultrual sector.

What is the salary of PEO? ›

PEO salary in India ranges between ₹ 0.5 Lakhs to ₹ 13.0 Lakhs with an average annual salary of ₹ 1.5 Lakhs.

How do I choose a PEO? ›

Guidelines for Choosing a PEO
  1. Assess your workplace to determine your human resource and risk management needs.
  2. Make sure the PEO is capable of meeting your goals. ...
  3. Ask for client and professional references.
  4. Check to see if the company is a member of NAPEO, the national trade association of the PEO industry.

When should I move away from PEO? ›

Businesses working with a non-certified PEO may find it best to wait until the first of the year for a smoother transition, especially regarding tax liabilities. If a business exits mid-year, taxes paid for employees throughout the year do not transfer and thus cause new tax accumulations to begin.

What are the risks of a PEO? ›

Some of the disadvantages might include the following:
  • Loss of control of essential processes and people.
  • An outside company's influence on your culture.
  • Diminished value of internal HR department.
  • Lack of control and security over employee paperwork.
  • A loss of institutional knowledge.

Who is better ADP or Paychex? ›

Is Paychex better than ADP? Whether Paychex is a better option depends on the size of your company and your individual business needs. We found Paychex to be most effective for small businesses and startups, while we prefer ADP for growing businesses and large companies.

What are the weaknesses of Paychex? ›

Weakness of Paychex – Internal Strategic Factors

The profitability ratio and Net Contribution % of Paychex are below the industry average. Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors.

Why is Paychex the best? ›

At all price levels, Paychex offers customer service 24/7; automatic calculation of federal, state, and local taxes; and the opportunity to self-administer payroll through software the company provides or work with a live specialist.

Who is Paychex competitor? ›

Paychex competitors include ADP, Fiserv, Booz Allen Hamilton, Gusto and Oracle.

What big companies use Paychex? ›

Companies using Paychex Flex for Payroll include: Bank of America Corporation, a United States based Banking and Financial Services organisation with 213000 employees and revenues of $89.11 billion, Wells Fargo & Company, a United States based Banking and Financial Services organisation with 253871 employees and ...

How much does Paychex PEO cost? ›

It comes with one price—$40 plus $6 per employee per month. It does not include built-in accounting services, but does integrate with tools such as QuickBooks, When I Work and Xerox. OnPay also offers a free 30-day trial period for companies to test out its service. Paychex does not offer any free trial.

How many employees do you need to join a PEO? ›

Home » FAQs » How Many Employees Do I Need to Partner with a PEO? PEOs typically partner with businesses consisting of between 5 and 500 employees. However, companies with as few as two employees have benefitted from a PEO.

Who was the first PEO? ›

Employee leasing in the United States began in the late 1960s by three businessmen, Eugene Boffa, Louis Calmare, and Joseph Martinez. The concept was popularized by Marvin R. Selter, who leased the employees of a doctor's office in Southern California.

What is the average size of a company using a PEO? ›

While a PEO can benefit most companies, the average company using a PEO has anywhere between 10 and 100 employees. Since that is a pretty large range that encompasses many types of unique businesses, employee size is not always the best indicator of whether or not a company could benefit from a PEO relationship.

What is the average PEO admin fee? ›

The flat fee is normally between $900 and $1,500 per employee each year, depending on the PEO in question. If the business owner elects to be charged as a percentage of the company's overall payroll, PEOs charge about 3-10% on average.

Does a PEO replace HR? ›

No, human resources outsourcing with a PEO doesn't 100 percent replace the need for internal human resource management.

Can PEO offer 401k? ›

The only type of retirement plan PEOs are legally allowed to offer are defined-contribution plans, such as 401(k)s, and can provide them only to companies that have at least one employee other than the owner. Self-employed working owners cannot currently join a plan operated by a PEO.

What is the number 1 company to work for? ›

The Top 10
RankCompany NameIndustry
1CiscoInformation Technology
3Wegmans Food Markets, Inc.Retail
4SalesforceInformation Technology
6 more rows

Which company has the best working conditions? ›

5 Companies Known for Great Work Culture — and What You Can Learn From Them
  • Elsevier. Elsevier helps scientists and healthcare professionals make discoveries, improve lives, and advance society. ...
  • Google. ...
  • Microsoft. ...
  • IBM. ...
  • Hubspot.
Oct 6, 2022

Which employment agency service is growing the fastest? ›

Human Resources Management

Option D is the correct answer.

Why is a PEO a good idea? ›

PEOs typically provide workers' compensation coverage and may handle claims administration on your behalf. They can also advise you on how to implement industry-specific workplace safety measures that could lower your risk.

Can you leave a PEO? ›

There are some tax consequences when you leave a PEO in the middle of the year. In the case of mid-year termination, the PEO will have to complete final taxes up to the termination date and provide W2 for that specific period. Therefore, your employees will be viewed as new hires when you take them back from the PEO.

Is the PEO industry growing? ›

As awareness of PEOs increases, the industry as a whole continues to grow. This paper provides new measures of the size, scope, and footprint of the PEO industry as of the end of calendar year 2020.

What questions should I ask a PEO? ›

Important Questions to Ask Before Choosing a PEO
  • What will I be paying for? ...
  • How much does working with a PEO cost? ...
  • What services are included? ...
  • What kind of technology or software does your firm provide? ...
  • Do you provide training or professional development? ...
  • Do you provide employee benefits plans?
Feb 4, 2022

Should I use a PEO broker? ›

Why would my business need a PEO? There are many reasons it benefits a business to partner with a PEO brokerage, namely: reducing costs, streamlining operations, hiring internationally, legal compliance and even employee termination all while reducing risk liability.

How long should I take PEO? ›

Ideally, allow for at least six months of planning. This helps to make the transition go smoothly for employees and greatly reduces stress. For many small businesses, PEOs provide a great solution to managing human resource functions.

Why are PEOs so expensive? ›

PEO fees are often based on a percentage of an employer's total payroll. For organizations with a large and growing payroll, and/or highly compensated employees, PEO fees can get very expensive. Likewise, 401(K) fees charged by PEOs can be higher than those sourced through a retirement services broker.

Is it better to stay at a company or move around? ›

Staying at your current company for a while can provide valuable stability, which is great if you're planning a big purchase or starting a family. But changing jobs diversifies your skills, makes you a more well-rounded employee, and lets you test the waters at different companies.

Can you switch PEO mid year? ›

If you switch to a PEO at any point during the year, your employees will get two W-2s, one from your company and the other from the PEO. So if this transition doesn't go smoothly, your employees' taxes could get complicated. Medical plans.

What is the downside of PEO for employees? ›

PEO Disadvantages

No or Few Benefits: One of the disadvantages of using a PEO is that you will have limited control over what kind of benefits you offer your employee. Many PEOs have pre-defined plans, and some choose not to offer benefits at all.

Who is Paychex biggest competitor? ›

The Top Paychex Competitors In 2023
  • OnPay: Best Overall.
  • Gusto: Best for Fast Growth.
  • QuickBooks: Best for Accounting Integration.
  • Justworks: Best for Low-Cost Insurance.
  • Remote: Best for International Workforce.
  • Paycor: Best for Human Capital Management (HCM)
  • Wave Payroll: Best for Fluctuating Workforce.
Jan 8, 2023

What payroll company is the best? ›

The Best Payroll Providers
  • Rippling.
  • Paychex.
  • Intuit Quickbooks.
  • Paycor.
  • Deluxe.
  • Square.
  • Papaya Global.
  • Remote Payroll.
Feb 1, 2023

Who is the biggest payroll company? ›

ADP is the largest and probably best-known payroll processing company in the United States.

Is Paychex a certified PEO? ›

Our certified payroll professionals are dedicated to helping you pay your employees correctly and on time, every pay period. Our payroll service includes options for paperless pay stubs, recordkeeping, customized pay stubs, expense management, and payroll tax compliance.

Is Paychex a reliable company? ›

Is Paychex legit? Paychex is a widely used business solutions platform that has been offering payroll and HR services to businesses across the country since the 1970s. It provides a wide variety of services and price points, an innovative mobile app and 24/7 customer support.

What is the difference between Paychex and paycom? ›

Paycom is ideally suited for medium-sized businesses that want an array of HR functions bundled into one software package.
Deciding factors.
Paychex FlexPaycom
Better forSmall businesses that want their payroll and HR software to scale alongside them.Larger businesses with advanced payroll and HR needs.
6 more rows
Jul 21, 2021

Who is better than ADP? ›

The best ADP competitors are:

QuickBooks – Best for payroll overall. Gusto – Best for benefits management. Paychex Flex – Best for payroll and tax advice. Square Payroll – Best for flexible payment plans.

Who is ADP's biggest competitor? ›

Competitors and Alternatives to ADP
  • Oracle.
  • SAP.
  • UKG.
  • Ceridian.
  • Paycor.
  • Freshworks.
  • ZingHR.
  • Epicor.

Who is the most powerful entity? ›


With a simple thought, the Beyonder can displace an entire planet, change the rules of physics, and even destroy the entire universe. That's why the Beyonder was presented in Marvel Comics as the most powerful being to ever exist.

What does PEO stand for? ›

PEO means professional employer organization.

What is special about PEO? ›

A professional employer organization (PEO) enables small to mid-sized businesses to provide their employees with access to better, more affordable benefits and streamline a lot of administrative HR functions—like payroll, benefits, compliance, and workers' compensation.

Is PEO a good idea? ›

A PEO may free up your time so you can focus on expanding your offerings and growing your business. In addition to time savings, a PEO might save you money by improving your hiring practices and locking in the best rates with insurance companies and other benefits providers.

What is the most powerful thing in the world? ›

That's about the same amount of energy in 10 trillion trillion billion megaton bombs! These explosions generate beams of high-energy radiation, called gamma-ray bursts (GRBs), which are considered by astronomers to be the most powerful thing in the universe.

Who is the strongest in the universe? ›

Chapter 85 of Dragon Ball Super makes it official that Goku is now the strongest warrior in Universe 7, with huge ramifications for the franchise.

How strong is eternity? ›

POWERS. Eternity possesses immortality, cosmic awareness, and nigh omniscience, the ability to know almost everything. Additionally, it can warp reality, meaning unlimited manipulation of time, matter, magic, etc.

How much do PEO companies charge? ›

On average, a professional employer organization (PEO) will cost a business anywhere from 2% to 11% of all wages, or about $500 to $1500 per employee, per year.

How does a PEO make money? ›

The way that a PEO makes money is by charging you to handle these services. Many companies charge per employee, while others might charge a percentage of total gross payroll. So if they charge $125 per employee per month and you have a 25-person team, you'll be paying $3,125 per month, or $37,500 a year.

How much are PEO dues? ›

Annual membership dues are set by each chapter. Typically they are under $50 per year.

What is a PEO cons? ›

Cons of using PEO companies

Costs of benefits can fluctuate. Lower quality of HR services. Compliance is not guaranteed. Employees have limited access to HR. Company data is out-of-house, not immediately accessible.

When should I leave PEO? ›

Currently, the average client size of a PEO is around 19 employees. However, as your business grows and develops, you may be wondering if it might be time to end your PEO relationship. Signs it might be time to switch include rising costs, duplication of services, and your upgrading of systems.


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2. Best PEO for Your Business – How to Determine the Right One
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3. Expand Your Wings By PEO Services | Benefits of PEO Services | SBS
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4. PEO for the CEO / PEO Broker Services / PEO Cost Comparison / FREE Cost Analysis
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5. Top 15 Countries by GDP in 2022 Global PEO Services #youtube #video
6. Best PEO (Professional Employer Organization) in India - Formaliti, AU
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