Best PEO Services 2026

Find the perfect Professional Employer Organization to handle HR, payroll, benefits, and compliance

Why Your Business Needs a PEO

Running a small business means wearing a dozen hats—CEO, salesperson, product manager, and reluctant HR department. When you're juggling payroll processing, benefits administration, workers' compensation, compliance reporting, and employee onboarding, critical HR tasks fall through the cracks. Worse, one compliance mistake can cost thousands in penalties.

A Professional Employer Organization (PEO) becomes your outsourced HR department. Through a co-employment arrangement, the PEO handles payroll, benefits, compliance, risk management, and HR administration while you retain control of day-to-day operations and business decisions. Your employees become co-employed by both your company and the PEO, which allows you to offer Fortune 500-level benefits at small business prices.

The business case is compelling: Companies using PEOs grow 7-9% faster, have 10-14% lower employee turnover, and are 50% less likely to go out of business, according to NAPEO research. PEOs handle the complexity of multi-state employment, changing labor laws, and benefits negotiations—freeing you to focus on growing your business instead of navigating HR minutiae.

The best part? Modern PEO services have evolved far beyond basic payroll outsourcing. Today's providers offer integrated technology platforms, dedicated HR advisors, employee training programs, and global expansion support—all at pricing that scales with your headcount.

Top PEO Services for Small Business

🏆 Best Overall: Insperity

Best for: Small to mid-sized businesses (5-150 employees) seeking comprehensive HR support and enterprise-level benefits

Why Insperity Wins

Core Services

Pricing

Structure: Custom pricing based on headcount, services selected, and industry
Typical Range: $1,500-$2,500 per employee per year (varies significantly)
Minimum: 5 employees
Contract: Annual or multi-year agreements

Best For

Established small businesses that want a true partner, not just a vendor. Perfect if you need comprehensive HR support, strong benefits packages, and dedicated advisors who know your business. Ideal for companies in moderate-risk industries seeking workers' comp cost reduction.

Not Ideal For

Startups with fewer than 5 employees. Companies that only need payroll (not full PEO services). Businesses requiring month-to-month flexibility—Insperity typically requires annual contracts.

Get Insperity Quote →

🌍 Best for Global Teams: Deel PEO

Best for: Companies (1+ employees) hiring internationally or managing contractors and employees across multiple countries

Why Deel Stands Out

Service Tiers

Pricing

US PEO: $89 per employee per month
Global EOR: $599 per employee per month
Contractors: $49 per contractor per month
Minimum: 1 employee
Contract: Monthly (cancel anytime with notice)

Best For

Companies with international employees or expansion plans. Startups and remote-first teams hiring across borders. Businesses managing mix of contractors and employees globally. Perfect for tech companies and agencies with distributed teams.

Limitations

Not ESAC-accredited (though compliant and reputable). Limited performance management features compared to specialized HR platforms. Some users report occasional platform bugs (usually resolved quickly).

Try Deel PEO →

📈 Best for Scalability: Rippling PEO

Best for: Fast-growing companies (5-500 employees) that need flexible, modern HR infrastructure

Why Rippling PEO

Core Platform Features

Pricing

Base Platform: $8 per employee per month (Rippling Unity required)
PEO Services: Custom quote (add-on to base platform)
Minimum: 5 employees
Contract: Monthly contracts available

Best For

Tech startups and modern companies prioritizing automation and integration. Businesses with remote and hybrid teams needing device management. Companies wanting the flexibility to switch between ASO, PEO, and self-service HR as they scale.

Limitations

Not ESAC-accredited. Pricing not transparent online for most features. 5-employee minimum. Can be pricey for very small businesses once you add multiple modules.

Explore Rippling PEO →

🏢 Best for Industry-Specific Needs: TriNet

Best for: Businesses (5+ employees) in specific industries like tech, professional services, retail, or healthcare

Why TriNet

Industry Specializations

Service Plans

Pricing

HR Platform: $8-$33 per employee per month (depending on tier)
PEO Services: Custom pricing
Minimum: 5 employees
Contract: Flexible based on customer needs

Best For

Companies that value industry expertise and specialized support. Businesses needing custom KPIs and industry benchmarking. Organizations with multiple entities requiring consolidated reporting.

Limitations

Doesn't support hazardous industries (heavy construction, oil drilling). No online PEO pricing. 5-employee minimum. Customer support can be difficult to reach according to some reviews.

Get TriNet Quote →

🎯 Best for Remote Teams: Paychex PEO

Best for: Small to mid-sized businesses (5-100 employees) with remote or multi-state teams

Why Paychex PEO

Core Services (Paychex Flex PEO)

Pricing

Structure: Custom quote based on headcount and services
Minimum: 5-10 employees (depending on benefits)
Contract: No minimum length (30-day cancellation notice)

Best For

Companies with employees in multiple states needing compliance expertise. Remote-first and hybrid businesses. Organizations wanting flexibility to customize their PEO package. Businesses that value no long-term contracts.

Limitations

No online pricing transparency. Reporting features less user-friendly than competitors. May need 10 employees to qualify for certain medical benefits. Some users report payroll setup can be complex initially.

Request Paychex Quote →

💰 Best for Ease of Use: Justworks

Best for: Small businesses (2-200 employees) wanting simple, transparent PEO services

Why Justworks

Core Services

Pricing

Basic: $59 per employee per month (payroll, benefits, compliance basics)
Plus: $99 per employee per month (adds HR tools, compliance support, training)
Minimum: 2 employees
Contract: Monthly or annual options

Best For

First-time PEO users who value simplicity. Small businesses wanting transparent pricing. Companies needing fast setup without complex implementation. Teams prioritizing user experience and responsive support.

Limitations

Limited customization compared to enterprise PEOs. Not ideal for complex, high-risk industries. Fewer industry-specific features than competitors like TriNet. Support hours are business hours only (no 24/7).

Try Justworks PEO →

🏥 Best for Benefits Administration: ADP TotalSource

Best for: Growing businesses (5-1000+ employees) prioritizing comprehensive benefits packages

Why ADP TotalSource

Core PEO Services

Pricing

Structure: Custom pricing based on headcount, location, and services
Typical Range: 2-12% of gross payroll annually
Minimum: 5 employees
Contract: Monthly, annual, or multi-year options

Best For

Companies wanting best-in-class benefits to attract and retain talent. Growing businesses that will scale beyond 100 employees. Organizations needing robust compliance support across multiple states. Businesses already using ADP for payroll wanting to upgrade to PEO.

Limitations

More expensive than budget PEO options. No pricing transparency online. Can feel less personalized than smaller PEO providers. Implementation complexity higher than simpler competitors like Justworks.

Contact ADP TotalSource →

How to Choose the Right PEO

Key Factors to Consider

1. Company Size and Growth Plans

Most PEOs have minimum employee requirements (typically 5-10 employees). If you're a solopreneur or have 2-3 employees, consider Justworks (2-employee minimum) or Deel (1-employee minimum). If you're rapidly scaling, prioritize PEOs with strong scalability like Rippling or ADP TotalSource that can grow with you from 10 to 1000+ employees.

2. Industry and Risk Profile

Your industry significantly impacts PEO pricing and availability. High-risk industries (construction, manufacturing) should look at PEOs specializing in workers' comp cost management like Insperity. Tech companies benefit from industry-specific PEOs like TriNet's tech vertical. Some PEOs (like TriNet) won't work with hazardous industries.

3. Geographic Footprint

If you have employees in multiple states, you need multi-state compliance expertise (Paychex excels here). For international employees, Deel is the clear choice. Local-only businesses have more flexibility but should still verify the PEO is licensed in your state.

4. Benefits Priorities

If offering competitive benefits is crucial for talent retention, focus on PEOs with strong benefits packages (ADP TotalSource, Insperity). These providers leverage their large client pools to negotiate better rates than you could get independently. If benefits are less critical, you might save money with a leaner PEO or ASO arrangement.

5. Technology and Integration Needs

Modern businesses need HR systems that integrate with existing tools. Rippling leads in integrations (500+). Paychex offers 130+ integrations. If you're heavily invested in specific software (accounting, CRM, project management), verify integration compatibility before committing.

6. Pricing Structure and Transparency

PEO pricing varies widely: $1,500-$2,500 per employee per year is typical, but can reach $3,500+ for high-risk industries. Some PEOs charge a percentage of payroll (2-12%), others use per-employee-per-month (PEPM) pricing. Justworks and Deel publish transparent pricing; others require custom quotes. Budget for 15-20% more than quoted to account for add-ons and insurance costs.

7. Contract Flexibility

Many PEOs require annual contracts, making it expensive to switch if you're unhappy. Paychex offers month-to-month with 30-day notice (rare). Deel and Justworks offer monthly contracts. If you're trying a PEO for the first time, prioritize flexibility over cost savings from annual prepayment.

8. Level of Service and Support

Consider what level of HR support you need. Full-service PEOs like Insperity provide dedicated HR teams (client liaison, payroll specialist, benefits specialist, safety consultant). Leaner options like Justworks offer account managers and support channels but less hands-on service. Tech-focused companies might prefer Rippling's self-service platform over high-touch support.

Red Flags to Watch For

PEO vs. ASO vs. HRO: What's the Difference?

PEO (Professional Employer Organization)

How it works: Co-employment relationship where the PEO becomes the employer of record for tax and insurance purposes. You retain control of business operations and management.

Best for: Small businesses (5-150 employees) wanting comprehensive HR services and access to better benefits.

Pros: Best benefits rates, full compliance support, reduced liability, comprehensive services.

Cons: Higher cost, less control, annual contracts common, co-employment can feel complex.

ASO (Administrative Services Organization)

How it works: You remain the employer of record. ASO provides HR technology and services but doesn't co-employ your workers.

Best for: Larger small businesses (50-500 employees) wanting HR support without co-employment.

Pros: More control, easier to switch vendors, often cheaper than PEO, no co-employment complexity.

Cons: Benefits rates not as good as PEO, more liability remains with you, services may be less comprehensive.

HRO (HR Outsourcing)

How it works: Broad term for outsourcing specific HR functions (payroll, recruiting, benefits, etc.) without full PEO or ASO partnership.

Best for: Any business size wanting to outsource specific HR tasks but not everything.

Pros: Highly customizable, pay only for what you need, easy to add/remove services.

Cons: Managing multiple vendors can be complex, no comprehensive benefits access, less strategic partnership.

The verdict: PEOs make most sense for small businesses (5-100 employees) wanting comprehensive HR support and better benefits. As you grow beyond 100-150 employees, ASO arrangements often become more cost-effective and give you more control. Start-ups with fewer than 5 employees should use standalone payroll and benefits platforms until they qualify for PEO minimums.

Common PEO Pricing Models Explained

Percentage of Payroll

Traditional PEO pricing: you pay 2-12% of gross payroll. A company with $1M annual payroll might pay $50,000-$120,000 per year ($4,200-$10,000/month). This scales naturally with raises and bonuses but can get expensive quickly.

Per-Employee-Per-Month (PEPM)

Flat rate per employee per month (e.g., $89-$150/employee/month). A 20-person company pays $1,780-$3,000/month regardless of salaries. This is more predictable for budgeting and better for high-wage employees, but less flexible for seasonal fluctuations.

Tiered Pricing

Different service levels at different price points (like Justworks' $59 Basic vs. $99 Plus). You choose the tier matching your needs. Good for controlling costs but may lack features you need in lower tiers.

Custom Pricing

PEO builds a quote based on your specific needs, headcount, industry, location, and risk profile. Most accurate but requires sales process. Expect higher rates for high-risk industries, multi-state operations, and comprehensive benefits.

What's Typically Included vs. Extra

Usually included: Payroll processing, tax filing, benefits administration, basic HR support, compliance assistance, workers' comp (at cost), basic reporting.

Often extra: Recruiting/ATS, advanced performance management, learning management, global EOR services, dedicated HR advisors, implementation fees, background checks, COBRA administration.

Budget tip: Always ask for an all-in quote including workers' comp insurance (rates vary by industry), state unemployment taxes, benefits premiums, and any setup fees. The base PEO fee is just one part of total cost.

Implementation Timeline: What to Expect

Week 1-2: Discovery and Planning

Week 3-4: System Setup

Week 5-6: Testing and Training

Week 7-8: Go-Live and Stabilization

Reality check: Simple implementations (small company, straightforward payroll) can happen in 2-3 weeks. Complex situations (multi-state, mid-year benefits transition, unique industry) often take 2-3 months. Plan your PEO transition to avoid benefits renewal periods if possible, or coordinate carefully with brokers.

Frequently Asked Questions

Do I lose control of my employees with a PEO?

No. In a co-employment arrangement, you retain full control over hiring, firing, management, day-to-day operations, and business decisions. The PEO handles administrative HR tasks, compliance, and acts as employer of record for tax and insurance purposes. You're still the boss.

Can I offer better benefits through a PEO than on my own?

Usually yes. PEOs pool hundreds or thousands of employees across many small businesses, giving them negotiating power similar to large enterprises. This means access to better health insurance rates, 401k plans with lower fees, and benefits (like FSA, HSA, commuter benefits) that would be too expensive to offer independently.

What happens if I want to leave my PEO?

It depends on your contract. Month-to-month agreements (Paychex, Deel, Justworks) allow you to leave with 30-60 days' notice. Annual contracts often require you to finish the term or pay early termination fees. Benefits transitions are the trickiest part—time departures carefully to align with plan year ends if possible.

Are PEOs only for tiny companies?

No, though they're most popular with 10-150 employee companies. Many PEOs (ADP TotalSource, TriNet, Insperity) serve clients with 500-1000+ employees. The value proposition changes at scale—larger companies often switch to ASO arrangements or build internal HR departments once they can negotiate benefits effectively on their own.

How much does a PEO actually cost?

Typical range: $1,500-$2,500 per employee per year, but highly variable. Low-risk industries with few benefits might pay $1,200/employee/year. High-risk industries (construction, manufacturing) with comprehensive benefits can exceed $3,500/employee/year. Get multiple quotes and compare total cost including workers' comp, not just the base PEO fee.

Do PEOs help with compliance and reduce liability?

Yes, significantly. PEOs handle payroll tax compliance, workers' comp claims, unemployment claims, benefits compliance (ACA, COBRA, ERISA, HIPAA), labor law posters, and harassment training. As co-employer, the PEO shares liability for these areas. This doesn't eliminate all risk, but it dramatically reduces it—especially for multi-state operations where compliance is complex.

Can I use a PEO if I only have employees in one state?

Absolutely. While multi-state operations benefit most from PEO compliance expertise, single-state companies still gain significant value from better benefits rates, reduced admin burden, and professional HR support. It's often more cost-effective than hiring a full-time HR person.

What's the difference between a PEO and just using payroll software?

Payroll software (Gusto, QuickBooks Payroll) processes paychecks and taxes but you remain responsible for compliance, benefits selection, workers' comp, HR policies, and regulatory reporting. A PEO co-employs your workers, takes on compliance responsibility, negotiates benefits, handles claims, provides HR advisors, and manages all the complex stuff. It's comprehensive outsourcing vs. a software tool.

Ready to Find Your PEO Partner?

Choosing the right PEO can save you thousands in benefits costs, reduce compliance risk, and free up time to focus on growing your business. The best PEO depends on your size, industry, growth trajectory, and what matters most—world-class benefits, global capabilities, ease of use, or industry expertise.

Our recommendation: Get quotes from 3-4 PEOs that match your profile. For most small businesses, we'd suggest starting with:

Schedule demos, ask tough questions about pricing, contract terms, and implementation timelines, and request client references. The right PEO becomes a true business partner, not just a vendor.

Get Insperity Quote Try Justworks Explore Deel PEO Contact Rippling