The Best PEO Companies For Businesses

These professional employment organizations can take the burden of HR and payroll admin off your hands with reasonable pricing and robust features.

Davina began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018. She currently resides in New York.

• WRITTEN & RESEARCHED BY

  Davina Ward Davina began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018. She currently resides in New York.

  Expert Contributor

  Last updated onUpdated November 3, 2023



Chelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been with Merchant Maverick helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well. She currently resides in Boise, Idaho.

REVIEWED BY

Chelsea Krause Chelsea Krause is a writer who specializes in accounting, payroll, and small business loans. She has been with Merchant Maverick helping small business owners manage their finances since 2016. She is a QuickBooks Certified User and former eCommerce store owner. Her accounting expertise has been quoted in Forbes and her work appears in Startup Nation, Small Business Bonfire, and Women on Business. Chelsea graduated summa cum laude with a BA in English & Creative Writing from George Fox University and studied abroad at the University of Oxford as well. She currently resides in Boise, Idaho.

Lead Staff Writer

If you have a small business, you may have looked into a Professional Employee Organization (PEO) to handle some of your administrative needs.

To determine the best PEO companies, we considered price, available features, and the types of small businesses they’re best suited for. Read on to find the right PEO solution for your business.

Learn More About Our Top Picks

Read more below to learn why we chose these options.

The 5 Best PEO Companies For Small Businesses In Detail

The best PEO companies will dramatically help you save time and be more efficient by handling your benefits administration, payroll needs, and hiring and recruiting, all while working with your company and its employees to stay true to your vision and ethics.

• Paychex: Best overall PEO
• ADP Payroll: Best PEO features & benefit selections
• Justworks: Most scalable PEO
• TriNet: Best Industry-Specific PEO
• Rippling: Best PEO for remote employees

A Closer Look At The Top Picks

Paychex: Best overall PEO

Get Started With Paychex

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ADP Payroll: Best PEO features & benefit selections

Get Started With ADP Payroll

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Justworks: Most scalable PEO

Get Started With Justworks

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TriNet: Best Industry-Specific PEO

Get Started With TriNet

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Rippling: Best PEO for remote employees

Get Started With Rippling

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Methodology

Merchant Maverick has been researching and reviewing payroll providers since 2018. Our writers have tested more than 75 different payroll software systems, evaluating pricing, features, ease of use, customer service, and user reviewers. Read more about how we rate payroll providers.

When comparing different apps, we consider over seventy data points, including the speed and cost of payroll runs, federal and state tax filing features, HR integrations, employee management tools, time tracking, and more. Our lists of the best providers include only apps we’ve deemed worthwhile from several vantage points. The payroll apps we pick are widely available and relatively easy to train on, with robust features and reasonable pricing. We also look carefully at features such as employee and client portals, user onboarding services, PTO management, benefits administration, multistate compliance, and more.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the providers included meet our internal standards for quality and reputation.

What Is A PEO?

PEO stands for professional employer organization. PEO companies take some troublesome payroll and HR tasks (such as benefits management, recruiting, and payroll) off your plate and manage them for you.

PEOs may specialize in certain tasks or have an industry-specific focus. Generally, they are equipped to take on small business functions, such as worker’s compensation, unemployment administration, employee onboarding and training, and legal compliance. But they’re not for everyone as they require a large budget and a willingness to be hands-off with your payroll management and HR administration.

PEO VS Payroll Software

Payroll software is generally managed by the business owner or in-house HR manager, whereas with a PEO (professional employer organization) payroll and HR management is outsourced to a separate company. Learn more about the different types of payroll software and how to know which is right for your business.

Benefits Of Using A PEO

The biggest benefit of having a PEO is that you gain back much needed time. Small businesses dedicate about 17% of their working hours to administrative tasks. Outsourcing payroll, benefits administration, and other HR duties to a PEO can save precious time and money that could be better spent running and growing your business.

A PEO:

• Saves you time
• Handles payroll, HR, & benefits administration tasks for you
• Ensure that you are compliant
• Provides expertise so you know you payroll & payroll taxes are being calculated correctly
• Manages employee terminations & HR concerns
• Can provide better access to employee benefits
• Can often assist with recruiting, hiring, and onboarding

According to NAPEO, a PEO company also affects positive business growth and can lead to less turnover:

“Businesses in a PEO arrangement grow 7-9 percent faster, have 10-14 percent lower turnover, and are 50 percent less likely to go out of business.”

How Much Do PEOs Cost?

PEO cost varies according to location, type of business, number of employees, and services provided. Many PEOs give price quotes on a case-by-case basis. In general, you can expect to pay anything from $8/employee to upward of $100/employee.

Which PEO Company Is Right For Your Business?

When evaluating PEOs for your business, it’s helpful to consider what services you want to outsource and what support your employees need to succeed. And since many PEOs don’t divulge their pricing publicly, it’s worth requesting quotes from multiple companies to find a solution that works for your budget.

Find a PEO with:

• A price in your budget
• The features you need
• Positive customer reviews
• Reputable customer support with multiple support options
• A willingness to demo the software
• Strong security measures
• Easy access for employees
• Upfront contract terms & cancellation policies

The right PEO should fit both your needs and your employees needs. It also should be a good cultural fit and the company’s communication style should mesh with your own as they will be handling many tasks on your behalf.

The top companies on this list are a great place to start. Be sure to comparison shop with quotes and demos to find the perfect fit for your business.

PEO FAQs

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Sources