21 Best PEO Companies for 2021 Recommened PEO List

PEO plans are typically structured on a per-employee, per-month basis, with businesses paying a fee for each employee that is enrolled in the plan. The fee may cover a variety of HR and employment services, such as payroll processing, benefits administration and compliance with employment laws. PEOs work by entering into a co-employment relationship with the businesses they serve. This means that the PEO becomes the employer of record for tax and compliance purposes, while the business retains control over its day-to-day operations and decision-making. The PEO handles HR tasks, such as payroll, benefits and workers’ compensation, and provides support and resources to help the business manage its employees.

For example, TriNet can add industry-required insurance like critical accident and illness policies for manufacturing firms, or support for fostering a good remote work culture. It also has experts on hand that can advise you on the regulations and compliances https://adprun.net/ of your industry and general employment and payroll law. With its Enrich Services line, it comes close to XcelHR for a variety of benefits. The majority of PEOs charge on a per-employee basis, ranging between $40 and $160 per employee per month.

1. We reached out for a quote but were unable to secure one prior to the publishing of this article.
2. We discovered who the key players are through industry experience and market research, and then we did a deep dive on each PEO provider.
3. As long as you have the budget for it and are fine sharing ownership of your company with a third party, working with a PEO can give you time to focus on running your business instead of dealing with HR.
4. TriNet has customer support teams with expertise in your industry and provides the most comprehensive industry-specific support features.
5. A PEO operates through a co-employment agreement, with the PEO becoming the legal employer of record for your employees.
6. Justworks is unique among the PEOs on our list in that it has a plan that does not include benefits.

A PEO operates through a co-employment agreement, with the PEO becoming the legal employer of record for your employees. This means it will handle legal employment processes like payroll processing, tax administration, and HR compliance. Despite this relationship, you still have control over the day-to-day responsibilities of your workers. To find the best professional employer organizations on the market, we started by researching and analyzing dozens of potential HR outsourcing solutions. We discovered who the key players are through industry experience and market research, and then we did a deep dive on each PEO provider.

How Does Working with a PEO Company Benefit My Employees?

Insperity can help you analyze and overhaul various business processes to make your company more efficient and reduce compliance risks. With its arsenal of labor attorneys, Engage PEO not only keeps up to date on employment law but it’s recognized by the Society for Human Resource Management to offer Professional Development Credits. Whether your employees need training on ADA, the FCRA or FMLA, there’s a training solution with Engage. Other features include workers’ comp, risk management, employee benefits, payroll and tax administration. A PEO is a company that you can outsource your business’s payroll and HR tasks to.

It provides invaluable support and expertise that can be very hard to find elsewhere. There are also optional benefits that include medical, dental, and vision insurance, in addition to 401(k) plans. These are offered through some of the nation’s best providers, as ADP holds some pretty impressive partnerships. Your dedicated team will include an HR services manager, HR specialist, payroll specialist, performance specialist, client liaison, and safety consultant for some of the best support you’ll find anywhere from a PEO. Online processing simplifies the payroll process, and Paychex outsources office management support if needed.

If a mistake happens because you didn’t send paperwork in time, the PEO is not at fault. Some factors are weighted more heavily than others, and we also understand that you may consider some of the above more important or not important at all. There may also be special offerings from some PEOs that won’t be relevant to most businesses but essential to yours, so keep your business’ needs in mind when making your final choice.

They need little if any training to help your business, and their services can scale with the growth of your organization. INFINITI HR partners with Talentuition, a recruitment process outsourcing (RPO) firm. Talentuition’s recruiting experts take the task of finding and vetting candidates off your hands. Recruitment services are available at two different levels, Classic and Advanced, but it’s unclear how these services differ and whether they cost anything.

What types of businesses benefit most from a PEO?

A few PEOs also consider your company’s credit rating and your employees’ health benefits history to determine pricing. Here, we looked for time and attendance software—which Trinet and Insperity include, and most of the others charge extra for—and learning management tools. Only Papaya lacked an LMS, but ADP, Rippling, and Insperity stood out by offering certifications or professional credits with their courses.

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Risk mitigation and HR compliance support are also included in a PEO’s services. Some PEO companies even provide end-to-end talent management solutions, such as hiring, training, and employee performance reviews. A few go beyond even that, with learning management systems and recruiting. One thing to pay attention to is how a PEO packages its services, like employee onboarding and development, insurance policies, workers’ compensation claims, payroll processing, risk and compliance management, and HR tasks. Some PEOs provide a one-size-fits-all solution, whereas others offer customizable services that you can add or remove to fit your small business’s needs. According to our research, TriNet offers the best overall professional employer organization (PEO) service due to its accessibility, contract customization, and industry-specific support.

That way, you get a good understanding of the services the PEO offers, as well as the pricing and contract structures, before heading into the sales process. Justworks prioritizes affordability with transparent pricing, gives dedicated account support, and offers expanded customer service options. INFINITI HR allows businesses to personalize services with the option to pick and choose services for a custom bundle. It separates major services like HR support and payroll so you can opt for one without being stuck with the other. It’s the kind of flexibility that large enterprises often look for when converting to a new provider.

Make a short list of potential companies.

However, when you request a quote, you’ll get a customized line-item list that clearly explains exactly which features you’ll be charged for and exactly how much each costs. Additionally, every customer can add HR and IT components like Payroll, Benefits, Device Management and others. Whether you choose Rippling PEO or one of its standalone HR, tech or payroll modules, you’ll also pay an unlisted monthly base fee. Rippling PEO differentiates itself from the market by offering a combination of HR, IT and finance solutions in one dashboard. The cloud-based solution also leverages automation in most of its processes.

TriNet is a solid choice for practically any company, having covered all general needs and quite a few specialist industries on top of that. With a great online platform and experience working practically everywhere with remote employees (which is becoming increasingly important), TriNet can tackle almost any problem for its clients. While it is a smaller company and therefore might not have too many customer reviews online, the consensus is that they are helpful to their clients and able to provide a wide swath of necessary services. Smaller businesses with specialized needs based on their industry, or a company that wants to work with a PEO that takes customer service and employee development seriously.

It is primarily for these reasons that we recommend a PEO company to practically every small business. While your business’s primary services and products are important, your employees are what makes the business move and exist as successfully as it does. For example, some very small companies lack HR personnel to complete HR-related tasks. Others have HR teams that are too small to handle all HR needs and therefore require some outsourced support. Brian has over 30 years publishing experience as a writer and editor across a range of computing, technology, and marketing titles.

PEOs will also collect all client employees into a pool for bargaining purposes, allowing for far cheaper and more effective benefit packages as well. In fact, one of the main reasons companies outsource their HR tasks is so that payroll will be handled for them, and some companies handle just payroll and specialize in doing so. With the right company (and most will be suitable for this job), you will not have to worry about payroll, timing, or related taxes. You will be able to access information related to payroll, etc., of course, but it will be taken care of for you and will generally only need an occasional review. Several PEO companies specialize in working with small businesses, whether they are growing rapidly or have been comfortable with their small size for years. Being an industry leader, there are plenty of opinions about TriNet, both good and bad.

Because of Papaya Global’s flexible service and compliance expertise across 160+ countries, it earns our pick as the best PEO for international compliance. It is also helpful to demo the software, as PEOs are co-employers and more than just a software service. When making your decision, prioritize PEOs that offer the features your business needs peo companies and have an excellent reputation for user experience and customer support. Justworks also offers onboarding, HR consulting, PTO management, off-cycle payments, employee benefits and 24/7 support. A PEO can provide you with the support you need to manage your HR—usually with a better price point than building your own in-house HR department.