It’s tough to navigate the best PEO Companies (also known as Professional Employer Organizations). We understand that handling HR for your company can be an exhausting task, one which distracts you from focusing on running your business or organization. This is most likely why you are considering a PEO company to handle those tasks for you and also reduce cost on health benefits and possibly workers compensation. No matter how unique your organization or business is, there will be a PEO service that fits your needs.
The 3 Types of PEO Companies That Will Suit Your Organization
Here are the most common types of PEO companies in 2019. Depending on the size or your organziation will determine which type of PEO is best to suit your needs. There are 3 types of PEO companies on the market today which are summarized below. Which is the best for your business’s needs? If you are unsure as to which PEO suits you best fill out the quote form on this page to get matched to the best PEO for you.
- Type 1 – Under 20 Employees – Are you under 20 employees and wondering if a PEO is even the right decision? This is the common thought process for those that have not implemented a PEO into a business. There are multiple PEO’s that focus on this 1 – 20 employee company range. These PEO’s have built their service team and technology to service small companies in ways they should be serviced and priced from an administration cost.
- Type 2 – 20 – 99 Employees – Company process, culture and government mandated compliance starts to change as you hit the 25, 50 and 100 employee mark. PEO’s help you navigate employee compliance and growing pains through employee lifecycles. At this size cost savings becomes very evident when moving onto a PEO to consolidate all tactical HR functions. For example, your EPLI insurance alone may cost you $15k annually and this is something that is free for your organization when you join a PEO
- Type 3 – 100 – 2000 Employees –You are not alone in this state compliance and payroll battle when you choose to partner with a PEO. At this size, benefit premiums can also sky rocket out of control. On top of that, you could have an HR department of 2-7 employees. We find that those HR staff members should be high level strategic thinkers that focus on culture, employee engagement and recruiting while the PEO offloads administrative burden and controls benefit premium costs.
High Level Overview PEO Companies Service Offerings and Benefits:
PEO’s help all “shapes and sizes” of companies in different ways. PEO companies consolidate all tactical HR services from onboarding to exiting of an employee. Some of the main services are providing an array of benefits for employees, running payroll, filing quarterly tax filings, covering workers comp on a cash flow basis, offloading of government compliance and employee risk mitigation. Most PEO’s will also aid with recruiting, expense reporting, training new employees and much more. By consolidating your HR functions to a PEO, you gain access to a large employee base that is grouped together for discounted pricing on benefits and workers comp. Not only do you become more efficient in your HR department, but you also control cost.
13 Factors for Evaluation of PEO Companies:
PEO services have many facets to them and all of them vary from company to company. They are all important and we’ve studied each while reviewing the market for the best all-around PEO options. We’ve reviewed the following when looking at each individual PEO:
- -Payroll processing
- -Health insurance options and support
- -HR regulation compliance assistance or management
- -HR management and consulting support
- -Recruiting and onboarding support
- -Safety compliance and risk management
- -Time, attendance, and productivity tracking tools
- -Customer service and feedback
- -Tax processing
- -Legal compliance
There are dozens of high-profile PEO service companies to choose from so we went through the effort of selecting the best PEO options that can lead your company to its fullest potential. At the end of our free assessment of your HR business needs, we make our recommendations on the best PEO’s. No matter which PEO you end up choosing, we will ensure you receive a full PEO solution that fits your needs. Therefore, if a standard service is not mentioned in the list above, please consider it as available.
Benefits of Using A PEO
Insurance Cost Savings – The main reason companies use a PEO is it saves them money. Mainly on the insurance costs of their business. By using a PEO you get to leverage their large pool of insurance to get better rates for your business.
Less Paperwork – Lets face it paperwork sucks. A PEO uses their technology platform to minimize the amount of paperwork your organization has to manage.
Compliance – A PEO manages all compliance and legal regarding your employees. Know that you are safe having the checks and balances managed by the PEO’s system.
Payroll Processing – No longer have to do paper checks.
Recruiting – Help you attract and hire the best talent.
Legal – Making sure you are compliant with employee claims.
8 Reasons PEO Companies It Can Help Your Business
A PEO allows a business to outsource its employee management, have other HR tasks handled for them, and gives personnel management support when needed (with most PEOs). They manage your payroll, tax forms and payments, employees insurance (healthcare benefits and workers compensation) and other benefits like 401k, life insurance, long term disability insurance, vision insurance, dental insurance, employee wellness programs, on-boarding new employees.
8 Frequently Asked Questions About PEO Companies:
What are the benefits of using a PEO? The main benefits of using are PEO are cost and time saving. Also they handle HR compliance and allows you to provide more value to your employees and make you more attractive to your employer.
How Much Does It Cost To Use A PEO? – Generally it costs between $1,000 – $2,000 per year per employee to use a PEO. The more employees you have the lower the cost can go.
How does the PEO charge? – PEO’s generally charge a % of overall payroll or an admin fee per employee. We prefer PEO’s that charge an admin fee because all the fee’s are more transparent where as a % of payroll fee has a lot of hidden fees.
Does it cost money to switch to a PEO? – Generally there is a service charge/setup fee which ranges from $1000 to $15,000 depending on size and complexity of the business
How long does it take to get started once I choose a PEO? – It can range between 3-6 weeks depending on the PEO with the average being around 4 weeks.
Can I get health insurance for myself and family as the founder? – Some PEO’s offer this option and some don’t.
Should I Pay myself using a PEO as the founder? – Depending on the corporate structure of your business you should definitely should be using a PEO to do your own payroll.
Who is the employer in a PEO? – The PEO engages in co-employment in which your employers are hired by the PEO and your company. Your employees sit on the PEO’s EIN.
What is a PEO? – A PEO is a service firm that provides outsourcing of HR, benefits, Payroll, compliance and insurance services to small and medium size businesses.
Is a PEO right for my company? – A PEO is right for your company if you want to a)save money on insurance b) outsource the HR function c) get complaint d)move your manual processes to software
Are PEO’s a good idea? – Yes, if you have the right business at the right size a PEO is great for your company.
What is the best PEO in my State? checkout our state based PEO guide here
Click Below To Compare The Best 50 Best Professional Employer Organization Companies In 2019:
|Abel||https://www.abelhr.com/||Abel is a family-owned and operated PEO that provides small and midsize firms with human resources management services. Services include HR compliance and administration, workers’ compensation, training, employee benefits management, and payroll.|
|AccessPoint||http://accesspointhr.com/||AccessPoint provides a wide range of human resources services to hundreds of companies across all types of industries. It enables businesses to outsource the management of human resources, employee benefits, payroll and workers’ compensation.|
|ADP||https://www.adp.com/||ADP TotalSource, is a global provider of business outsourcing services. These services include payroll, human resources, time and attendance, and benefits administration. TotalSource handles tax filing, payroll, employee benefits, compliance and workers’ compensation. In addition, it provides HR advice and expertise. Its customers include small and midsize businesses.|
|Ahead Human Resources||http://aheadhr.com/||Ahead Human Resources specializes in working with various small and midsize companies. They handle many HR-related tasks, including 125 plans; federal, state and local tax filings; health, dental, vision and life insurance; 401(k) administration; and new-hire reporting.|
|Alcott HR||http://alcotthr.com/||Alcott HR provides comprehensive HR outsourcing programs to small and midsize businesses. Their services include regulatory compliance and risk management, payroll and payroll taxes administration, human resources administration, employee benefits program design and administration, and training and development.|
|Acadia HR||http://www.acadiahr.com/||Acadia HR works with small and midsize companies throughout the United States. It offers payroll, PEO and human resources outsourcing services. The company’s PEO package includes payroll, payroll tax compliance, HR management services, workers’ compensation, state unemployment and employee benefits.|
|ARCH Resources||http://archresourcesgroup.com/||ARCH Resources Group is a PEO that offers all the standard services including: payroll management, employee benefits, human resources and workers’ compensation. In addition, the company offers financial and retirement services, recruiting services, background check verification, and employee self-service options.|
|ARC Consultants||http://www.arcpeo.com/||ARC is a PEO consulting firm, not an individual PEO. This company helps you find the right PEO service at the best cost for your business.|
|Best Employment||https://www.bestpeo.com/||BEST is a Michigan-based PEO that provides businesses nationwide with HR management, payroll services, labor law advice, compliance monitoring for federal and state labor laws, and benefits packages. The company serves many business sizes, from sole proprietors to a large organization’s HR department.|
|CoAdvantage||http://www.coadvantage.com/||CoAdvantage is a PEO that offers small and midsize businesses a comprehensive package of outsourced HR services. The company integrates payroll and tax processing, employee benefits plan administration, risk management, government compliance, and other HR services into a single vendor solution. CoAdvantage serves clients across all of the United States.|
|Emplicity||http://www.emplicity.com/||Emplicity offers full-service PEO support or individual PEO and administrative services. These services include customized employee benefits, workers’ compensation, payroll administration, employee leasing and HR consulting.|
|Employee Management||http://www.emshro.com/home/||Employee Management Services provides professional HR solutions. It focuses on companies in Ohio, Kentucky and Indiana, but it’s licensed to provide services in other states. Its PEO services include employee selection and retention, manager training and development, human resources and benefits administration, payroll, workplace safety programs, and employee benefits analysis.|
|Employer Solutions Group||http://www.esghr.com/||Employer Solutions Group provides payroll, benefits, workers’ compensation, risk management, HR consulting, and all of the other related administrative services to small and midsize businesses.|
|Engage PEO||https://www.engagepeo.com/||Engage PEO provides a solid offering in human resources, risk management, payroll and benefits services. Additionally, they have a strong training program that includes onsite and online training on a variety of topics.|
|Extensis Group||https://www.extensisgroup.com/||Extensis Group offers HR management, payroll and tax services, healthcare benefits, risk management and compliance, training and development programs, recruiting services, and other services. They work with small and midsize businesses.|
|FrankCrum||https://www.frankcrum.com/||FrankCrum provide outsourced human resources, payroll, employee benefits, risk management and workers’ compensation. FrankCrum helps businesses offer and administer employee benefits, including health and dental coverage and 401(k) plans. The company’s online HR information system allows employees and employers to access and manage information anytime from computers or mobile devices at work or home.|
|G & A Partners||https://www.gnapartners.com/||G&A Partners provides a full PEO and HR outsourcing services. Working with G&A Partners you get human resources services, modern payroll technology, competitive benefits pricing, workplace safety offerings, and risk and compliance offerings.|
|Genesis HR Solutions||https://genesishrsolutions.com/||GenesisHR Solutions is a national company that provides PEO services to small and midsize businesses. Businesses have access to the standard suite of services, including benefits administration, payroll processing, risk management and HR outsourcing.|
|Globalization Partners||http://globalization-partners.com/||Globalization Partners works in over 150 countries to take care of employees with benefits and other HR services. You don’t have to worry about laws and regulations in each country, as Globalization Partners does this for you. It files your payroll and other taxes and ensures you stay compliant so that you can focus on running your business.|
|Group Management||https://www.groupmgmt.com/||GMS is a PEO and third-party administrator that serves companies of all sizes across the United States. It handles payroll and tax responsibilities, HR administration, employee benefits administration and risk management services.|
|HROi||https://www.hroi.com/||HROi offers small businesses a full suite of PEO services. The company’s payroll offering is unique for including a full suite of features and services, like a cloud-based platform and compliance support. The company also provides good benefits package options, with additional services like a doctor concierge and separate employee perks and discounts.|
|Impact Workforce Solutions||http://impactsolutions.com/||Impact is an ESAC-accredited PEO that delivers solutions to small and midsize businesses. The company is in the top 5 percent of PEOs on the market.|
|Insperity||https://www.insperity.com/||Insperity offers a full-service HR package and individual services, to companies with five to 5,000 employees.|
|Justworks||https://justworks.com/||Justworks provides an online platform to handle payroll, HR, benefits and compliance needs. In addition to PEO services, it has advanced resources for your HR and business needs. A stand out feature is their website that features a separate resource center and blog that provides helpful articles on varying topics, such as hiring new workers and benefits administration. Justworks requires only two employees for a company to use its service.|
|LandrumHR||http://www.landrumhr.com/||LandrumHR handles the human resources needs of small and midsize businesses. Services they provide include: job descriptions, employee handbooks, payroll and taxes, medical benefits, retirement plans, liability coverage, risk management, employee complaints, business development, staffing, recruiting, and consulting.|
|Lever1||http://www.lever1.com/||Lever1 is a Kansas City, Missouri-based PEO providing a multitude of resources for small and midsize businesses across all 50 states. The company’s services include payroll, employee manuals, recruiting, management training, health benefits, 401(k) plans, life and disability insurance, and workers’ compensation.|
|Modern Business Associates||http://www.mbahro.com/||Modern Business Associates (MBA) offers customized payroll, tax, benefits, risk management and HR administrative services. MBA partners with organizations ranging from small businesses to large corporations and multiunit franchises. MBA has an internal staff of HR professionals who are licensed employment-law attorneys. They work with clients to keep them informed of relevant labor and employment requirements.|
|National PEO||https://www.nationalpeo.com/||National PEO offers a wide variety of services, including workers’ compensation insurance, safety management and payroll. It also offers a multitude of HR outsourcing services, such as labor law compliance, employee handbooks, FLSA and Fair Pay Act compliance, training and development, corrective action and conflict resolution, group and individual benefits management, 401(k) plans, and strategic planning.|
|NetPEO||http://www.netpeo.com/||NetPEO is an HR brokerage firm, not an individual PEO. It connects businesses to companies that provide outsourced HR services.|
|Nextep||http://www.nextep.com/||Nextep serves small and midsize businesses. Accredited by both the IRS and ESAC, it provides HR, benefits, payroll and risk compliance services.|
|Oasis Outsourcing||https://www.oasisadvantage.com/||They are PEO Companies that provide HR services, employee benefits, payroll administration, employee hiring assistance and risk management. Oasis is one of the larger PEO companies in the USA.|
|OneSource Business Solutions||http://www.onesourcepeo.com/||OneSource Business Solutions work with HR outsourcing in small and midsize companies. Its integrated service package includes payroll administration, workers’ compensation, human resources, benefits administration and government compliance.|
|Optimum Employer Solutions||http://optimumhr.net/||Optimum Employer Solutions is a human resources outsourcing company that helps small and midsize businesses manage their employer obligations. The company’s HR services include interviewing, background screening, electronic onboarding, employee handbook creation, performance management, corrective actions, employee separation counseling and training. Additionally, Optimum’s PEO offers payroll, employee benefits and risk management.|
|Paychex||https://www.paychex.com/||Paychex serves small businesses throughout the U.S. Their services include payroll processing, retirement services, insurance, and fully outsourced benefits and HR services.|
|Pinnacle PEO||http://www.pinnaclepeo.com/||Pinnacle manages all aspects of payroll administration, employee benefits, workers’ compensation coverage and claims administration. Through its HR services, it can assist with recruiting and hiring employees. Pinnacle currently has clients in 32 states across a variety of industries, including health services, restaurants, financial organizations and light industrial companies.|
|Premier Employer Services||http://premieremployerservices.com/||Premier Employer Services are a PEO that provides customized HR services, including health benefits, talent acquisition, HR administration, payroll, payroll tax compliance, workers’ compensation and unemployment insurance.|
|Prestige Employee Administrators||https://prestigeemployee.com/||Prestige Employee Administrators is a human resources outsourcing firm that offers strategic HR support, payroll services, employment services and benefit programs to small and midsize businesses. Their extra bonus is that all employees can get assistance via toll-free call center during business hours and on the website 24 hours a day.|
|Questco||https://questco.net/||Questco provides HR solutions, payroll services, employee benefits, risk management compliance and a platform for managing all your servies. The company also offers great training resources for safety and compliance issues, with both onsite and online training available. Questco is a very fast growing PEO company.|
|Regis HRG||http://www.regishrgroup.com||This PEO service offers solutions in several categories. These include human resources, payroll, benefits administration, and training and development. Corporate citizenship, regulatory compliance, workers’ compensation and employee wellness programs are also available. You can choose what services you need, and each plan is tailored to your business’s needs.|
|Resource Management Inc.||http://www.rminc.com/||Resource Management Inc. (RMI) are strictly regulated, insured, audited and professionally licensed. In addition to payroll and benefits, RMI is involved in hiring, firing, job descriptions, performance evaluations, promotions and transfers.|
|Siracusa Staffing & Leasing||https://siracusastaffi1.com/||Florida based Siracusa Staffing & Leasing specializes in workers compensation, payroll services and tax administration for small and medium-sized businesses.|
|Staff One||https://www.staffone.com/||Staff One provides strategic HR services, risk management, compliance management, employee benefits, payroll outsourcing and tax administration for a variety of small and midsize businesses across the country. This PEO serves several industries including business services, manufacturing, distribution, retail, property management and healthcare.|
|Synergy||http://mysynergy.com/||Synergy delivers a wide range of PEO and human capital management services. The company provides HR services, payroll processing, benefits administration, employee training and workplace safety programs. Synergy has the added bonus of an online HR portal.|
|Total Team Solutions||http://www.ttspro.com/||Total Team Solutions provides payroll, employee benefits and HR services to small and midsize companies. The company’s PEO includes payroll administration, workers’ compensation, employee benefits and risk management.|
|TriNet||http://www.trinet.com||TriNet provides HR outsourcing to small and midsize businesses. The company offers bundled HR packages, cloud applications and strategic services. This PEO’s bundled packages are tailored to each industry. TriNet’s services include payroll, benefits, risk management and compliance. Trinet is a large PEO.|
|Unique HR||https://www.uniquehr.com/||Texas-based PEO Unique HR offer human resources, benefits and payroll services that are tailored to the needs of each business. Its self-insured workers’ compensation offers businesses stable and predictable costs with no premium down payments. The company’s leaders are expereienced veterans of the PEO industry. Unique HR currently serves clients in 16 states across the country.|
|Vensure||https://vensure.com/||Vensure provides a full selection of PEO services and works to increase the productivity of its clients through an easy-to-use solution.|
|XcelHR||https://www.xcelhr.com/||XcelHR offers PEO, ASO and HR outsourcing services to small and midsize businesses. XcelHR creates unique HR packages based on the needs of each customer. Comprehensive bundle packages or a la carte options are available. The company serves businesses with workforces ranging from 10 to more than 250 employees.|