A professional employer organization (PEO) is ideal for small and midsize businesses that want an experienced administrative staff so they can offer quality health benefits to their employees and remain up to date with financial and legal requirements. We spoke with community experts and small business owners to discover what PEO features are most valuable, such as payroll, employee benefits, risk and compliance management, and training and development. After spending countless hours researching nearly 60 PEO agencies and their services, we narrowed them down the best PEOs for small businesses.
"}},{"__typename":"SectionBestPicks","id":"best-picks","isInToc":true,"type":"bestpicks","megaBestPicksTopCardLimit":5,"bestpicks":[{"bullets":["Per-employee pricing","Specialties in certain industries","E-learning and reporting tools"],"description":"Oasis Outsourcing is an ideal PEO solution for startups. Oasis supports a client of any size – it doesn't have an employee minimum, although your agreement structure may depend on how big your company is. Oasis requires a one-year contract.
\r\n\r\nOasis gives you the ability to mix and match services as you require – as your business changes, you can add or remove services accordingly. For these reasons, Oasis Outsourcing is the best PEO for startups.
","descriptionTest":"","fullTitle":"Best for Startups","isFeaturedBestPick":false,"isJumpLink":false,"tabTitle":"Best for Startups","review":{"displayName":"Oasis Outsourcing","canonical":"https://staging.business.com/reviews/oasis-outsourcing-peo-services/","id":"f53f72bc3fe29b45517c349198feafb8","url":"http://www.oasisadvantage.com/","review":{"pros":["Oasis has a cloud-based platform and a mobile app (Employee Connect) that are both easy to use.","Customers can access free demos for applicant tracking, NextGen technology, time and attendance, performance management, and employee onboarding solutions."],"cons":["Oasis requires new users to have at least five employees and sign a one-year contract."],"fullReviewTest":"Oasis, a Paychex company, tailors its PEO services based on your industry and can scale with your business as it grows. New users must have at least five employees and sign a one-year contract, but plans are flexible and convenient. Oasis provides a cloud-based platform and mobile app, so you and your employees can access your PEO services even on the go. It provides extensive training resources and personalized service, and its flexible contract and pricing structure is convenient for startups. Small business owners can rest easy knowing they're backed by a company that can handle compliance, payroll and HR for them. Oasis is certified by the IRS and accredited by the Employer Services Assurance Corporation (ESAC) and Better Business Bureau with an A+ rating. It's for these reasons and more that Oasis earns our pick as the best PEO services for startups.
","fullReview":"Oasis, a Paychex company, is our pick as the best PEO services for startups. To be eligible for Oasis, your business must have at least five employees. You will also need to sign a one-year contract and use its payroll software. Oasis provides extensive training resources and personalized service, and its flexible contract and pricing structure is convenient for startups. Oasis provides a cloud-based platform and mobile app, so you and your employees can access your PEO services while on the go.
\r\n\r\n
View all of our recommendations for PEO services and HR outsourcing services on our best picks pages.
\r\nOasis has flexible pricing options that are great for startups and growing businesses. You must have at least five worksite employees to be eligible for Oasis' PEO services. A one-year contract is also required, however, you aren't necessarily locked in to using Oasis for one year. You can cancel by submitting a 30-day written notice to Oasis.
\r\nAnother requirement Oasis has – if you want access to Oasis' other features like employee benefits and its HR services – is that you'll need to enroll in its payroll software. However, this is a requirement for nearly every PEO we reviewed.
\r\nOasis is accredited by the Better Business Bureau, the IRS and the Employer Services Assurance Corporation, and has some of the best nationwide services of any PEO we reviewed. You have a full selection of services that are very helpful during the critical early years of your business, and you can scale Oasis' PEO services as your business grows. Oasis also provides industry-specific HR and PEO solutions for franchises, hospitality, law offices, retail, and other small business industries. When you sign up with Oasis, you get:
\r\nOasis provides an HR consultant who can help you develop your HR policies. The PEO will assist you with employee handbook and policy development, new-hire reporting, best employment practices, compliance services (if needed), performance evaluations, behavioral assessments, and employee termination and dispute assistance.
\r\nOasis can provide Fortune 500-level benefits to small businesses. You and your employees can choose from multiple plans for health, vision, dental, 401(k), health savings accounts, flexible spending accounts, prepaid college funds, parking and transit plans, health and wellness coaching, and employee assistance programs.
\r\nOasis' payroll software tracks your employees' time and attendance, paid time off, and sick days. It also provides expense reports, workforce management, and other time and attendance features. Oasis has a mobile app and an online service center, so your employees can access their information from outside the office.
\r\nThis PEO provides return-to-work programs and workers' compensation. It can also assist if you need to conduct employee drug screenings, safety trainings and certification, and/or if you need assistance with OSHA compliance.
Oasis offers e-learning courses to help your employees improve their soft skills as well as technical and computer-related skills. Users can access thousands of online books, videos and courses about a range of topics such as compliance, customer service, leadership, management, and more. Oasis virtual learning services have reporting capabilities as well.
\r\nOasis provides customized solutions for businesses in a range of industries, which is ideal for startups that are just starting out and gaining a foothold in an industry and that need the knowledge and experience that a national, accredited organization can provide.
\r\nAnother benefit for startups is the Oasis PEO platform uses cloud-based technology that is easy to implement and use. There is no software or hardware you're required to purchase. Its mobile application, EmployeeConnect, allows your employees to access their timecard and payroll information on their smartphones. (EmployeeConnect's app is compatible with iOS and Android devices.) Oasis offers a demo of its platform, so you can get firsthand experience with the various features, including its applicant tracking system, time and attendance, performance management, and employee onboarding.
\r\nOasis is a great option for startups, but you'll need to employ a minimum of five worksite employees to be eligible for their services. A lot of PEOs have a minimum employee requirement, and although Oasis' minimum is on the lower end, it could still pose a problem for very small startups.
\r\nWhen you become a client of Oasis, there are two main managers your business will interact with: a dedicated payroll account manager and a human resource generalist. These managers will work with you to help you develop and implement new practices in your business. This level of attention is convenient for startups, which often do not have established processes for payroll or other HR functions, such as onboarding, performance reviews and termination. Your Oasis team is available to answer your questions by phone and email.
\r\nAs part of our evaluation, we reached out to Oasis, posing as an owner of a startup interested in hiring a PEO. We interacted with Oasis by email and phone. Each time we connected with them, Oasis offered stellar customer service and provided us with all the information we needed for our hypothetical business. Instead of pushing us to make a decision, its representatives helped us understand its overall services.
\r\nEditor's note: Need a PEO service for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.
With Justworks, a fast-growing HR technology company, entrepreneurs and their teams get access to comprehensive benefit offerings, automated payroll, compliance support, and HR tools – all in one place. As a PEO, Justworks gives small and midsize businesses access to corporate-level benefits at affordable rates, including medical, dental and vision insurance, and employee retirement plans. Its automated payroll services handles all benefits and tax withholdings. Justworks, which offers 24/7 expert customer support via phone, email, chat, Slack, or SMS, helps streamline your back-office functions in one easy-to-use platform. You also get access to HR consultants who can provide tailored guidance and best practices around building policies and managing your people.
","descriptionTest":"With Justworks, a fast-growing HR technology company, entrepreneurs and their teams get access to comprehensive benefit offerings, automated payroll, compliance support, and HR tools – all in one place. As a PEO, Justworks gives small and midsize businesses access to corporate-level benefits at affordable rates, including medical, dental and vision insurance, and employee retirement plans. Its automated payroll services handles all benefits and tax withholdings. Justworks, which offers 24/7 expert customer support via phone, email, chat, Slack, or SMS, helps streamline your back-office functions in one easy-to-use platform. You also get access to HR consultants who can provide tailored guidance and best practices around building policies and managing your people.","fullTitle":"Featured Sponsor","isFeaturedBestPick":true,"isJumpLink":false,"tabTitle":"Featured Sponsor","review":{"displayName":"Justworks","canonical":"https://staging.business.com/reviews/justworks/","id":"c2f551249ff02ddd4a29b6c3be9d4440","url":"https://justworks.com","review":{"pros":null,"cons":null,"fullReviewTest":"","fullReview":"Justworks can handle your payroll, HR, benefits and compliance needs. It offers multiple tiered plans, and Justworks is transparent about its pricing. Justworks is lacking in employee training and development services compared to other PEOs we evaluated. Justworks is accredited by the Employer Services Assurance Corporation and has an A+ rating with the Better Business Bureau.
\r\n\r\n
October 2020: Justworks recognizes that providing mental health services to employees has become a top priority for many employers during the COVID-19 pandemic, which is why it has partnered up with Talkspace, an online therapy service. Employees who are enrolled in any medical plan through Justworks can access Talkspace mental health services for free for up to three months.
\r\nJustworks is one of the few PEOs that advertises its prices online. This demonstrates what Justworks is about: The company is upfront about what it offers. For a business owner who is researching PEOs, it's easy to get lost in marketing language and empty promises from a sales team, so it's refreshing to find a company that is transparent with its offerings and prices. Justworks breaks down pricing based on the number of employees your company has and features.
\r\nJustworks' plans consist of Basic and Plus. The Basic plans include standard human resource services like payroll, taxes, employee onboarding and benefits, workers' compensation, etc. The Plus plans include everything in the Basic plan, in addition to COBRA administration, health advocacy services, additional access to medical, dental and vision insurance, and health savings and flexible savings accounts.
\r\nOnce you determine the type of benefits you're interested in offering your workers, the pricing is straightforward: Justworks charges on a per-employee basis, which is standard protocol among PEO services we reviewed.
\r\nBasic Plans
\r\nPlus Plans
\r\nYou can pay monthly or annually; if you pay yearly, the cost is slightly lower. Although Justworks advertises that there are no additional fees, really, your monthly or annual costs don't include healthcare benefits and workers' compensation, and those prices will depend on your individual plan.
\r\nJustworks provides an account manager for your company, so you can get answers quickly when you need information on your HR services or have an issue with payroll, but the Justworks representatives we spoke to said that most of its customers find the standard support team to be a sufficient resource. These services are included with your Justworks PEO plan:
\r\nJustworks provides the standard HR solutions. You can create a company directory and employee handbook, and Justworks will help you with document storage management and employee onboarding. You can also create a company calendar to inform all of your employees about important work events. From our research, it doesn't appear that Justworks offers HR auditing tools.
\r\nLike many of the PEOs we reviewed, Justworks offers your employees low-cost benefit plans, including health, vision, dental, disability and life insurance. It also supports 401(k) plans, and you can elect to include other wellness perks like gym memberships, commuter benefits and health advocacy services. Justworks offers access to health savings accounts, flexible spending accounts, COBRA administration and ACA filings.
\r\nYou can view and manage payroll through Justworks' cloud-based payroll management solution. Managers can track paid time off and add sick and vacation days for employees. The payroll service supports full-time, part-time, salaried and hourly employees. The company also handles all your tax compliance needs, including filing W-2s, paying quarterly payroll taxes, and keeping you up to date on changing tax and employment laws.
\r\nThis PEO provides workers' compensation, employment liability insurance and disability insurance. It also offers help with state and federal tax and labor laws compliance, as well as a sexual harassment prevention training program for employees.
\r\nJustworks provides articles and other resources on several HR and PEO-related topics, which you can find on its website. Its training focuses on HR support regarding benefits and payroll, which is an important distinction if you're looking for a PEO that provides employee development courses.
\r\nJustworks was one of the few PEOs we looked at that discloses pricing on its website. This is very helpful for business owners who want to quickly estimate much they may spend on PEO services, and what they will get for their money.
\r\nAnother advantage of Justworks is that it has a wealth of useful online resources where small business owners can learn more about human resource management. Its resource center covers benefits and perks, hiring and onboarding, team management, compliance and running a business. It also has a blog, help center, referral program and testimonials. You can easily reach a Justworks agent through a chatbot, phone or email.
\r\nSince Justworks offers two plans, it's not the kind of PEO where you can mix and match services. With some PEOs, you can enroll only in their payroll service and then pay for the other services you use, but that is not the case with Justworks.
\r\nAnother potential drawback is that Justworks is not eligible for coverage in certain industries. It can be frustrating to put energy into signing up for a PEO, only to learn you don't qualify. If Justworks is on your shortlist, we'd recommend that you call the company and talk with a representative to make sure your business is operating within a covered industry.
\r\nThe technology aspect of Justworks comes through in its customer service options. The company has a chatbot that gathers basic info from you while you wait in the queue for a representative. The live chat also displays pictures and names of the individuals you're talking to, which is a nice, personalized touch.
\r\nLike many other PEOs, when you sign up with Justworks, you're assigned a designated account manager to help you with various aspects of your service. Some PEOs, however, provide direct experts in each area of service. While Justworks can handle your inquiries, it doesn't tout its service team as individual topic experts. When we spoke with Justworks representatives, they said that many business owners are able to iron out issues with the support team and may not need to work directly with their account manager.
\r\nEditor's note: Is your business looking for a PEO service? Fill out the below questionnaire to have our vendor partners contact you about your needs.
"},"pricing":{"isCapped":false,"isFeatured":false,"primary":true,"selected":"affiliate-widget","widgetId":"10092","widget":{"id":"10092","cta":"Compare Quotes","isExclusive":false},"affiliate":{"cta":"Visit Site","link":"https://businesscom.go2cloud.org/aff_c?offer_id=44&aff_id=1000&source=best-peo-services&aff_sub4=revenue|QT&aff_sub3=deal|Justworks&url_id=1","name":"HasOffers/Tune"}},"thumbnail":{"path":"https://staging.business.com/images/rz/5f8c71da5a215e171a8b4568/justworks.png"}}},{"bullets":["Industry-specific HR support","Custom contract terms","Plans tailored to your vertical"],"description":"TriNet has an attractive offering for very small businesses, which includes a flexible pricing structure and no long-term contracts. TriNet provides HR services, risk management, payroll software and benefits administration, which are all included in its PEO plan. Very small businesses can use TriNet's services to grow and offer competitive employee benefits and HR solutions to prospective employees. In our interactions with TriNet, the representatives were all kind, professional and helpful. For these reasons, TriNet is our pick as the best PEO for very small businesses.
\r\n\r\nMarch 2021: TriNet recently added new product features to help SMBs create more inclusive and equitable environments. These features include employee compensation benchmarking, multi-company reporting access, mobile admin capabilities, and the ability to select pronoun and gender identity within the platform.
\r\n\r\nFebruary 2021: Small businesses can now access Connect 360, a new support resource TriNet is offering, to have their HR questions answered by specialized HR support. TriNet clients can contact an HR rep at Connect 360 by phone, email and live chat from 6 a.m. to midnight ET (excluding holidays).
\r\n\r\nTriNet is certified by the IRS and accredited by the Employer Services Assurance Corporation. ESAC is an independent nonprofit that is the official accreditation and financial assurance organization for the PEO industry. Certification by the IRS and accreditation by ESAC are essential qualifications you should look for in a PEO.
","descriptionTest":"","fullTitle":"Best for Tailored Industries","isFeaturedBestPick":false,"isJumpLink":false,"tabTitle":"Best for Tailored Industries","review":{"displayName":"TriNet","canonical":"https://staging.business.com/reviews/trinet/","id":"956805c325e2ee5b1c6bdc43afa67afe","url":"https://www.trinet.com/","review":{"pros":["TriNet can build an expert HR support team according to your business's industry, size and location.","Its proprietary technology makes the platform particularly easy to use, allowing you and your staff to quickly make changes as needed."],"cons":["Though you can customize plans for your business, the bundled service package means you might pay for some features you don't specifically need."],"fullReviewTest":"TriNet is one of the only PEO companies we reviewed that provides industry-first expert support teams. It can build an expert HR support team around your business's industry, size and location, so you'll have the appropriate level of access to experts who have direct experience working with businesses like yours. Its tailored PEO plans are charged per employee, per month and can include employee benefits, workers' compensation insurance, risk management software, payroll processing, retirement plans and training resources. TriNet is accredited by the IRS and ESAC, and it has an A+ Better Business Bureau rating. It's for these reasons and more that TriNet has earned our pick as the best PEO provider for businesses who want a PEO plan tailored to their industry.
","fullReview":"TriNet is one of the only PEO companies we reviewed that provides industry-first expert support teams. It can build an expert HR support team around your business's industry, size and location, ensuring you have the appropriate access to experts who have direct experience with businesses like yours. Its tailored PEO plans are charged per employee, per month and can include employee benefits, workers' compensation insurance, risk management software, payroll processing, retirement plans and training resources. It's for these reasons and more that TriNet has earned our pick as the best PEO provider for businesses that want a PEO plan tailored to their industry.
\r\nAugust 2020: To increase productivity and enhance employee experience, TriNet has launched new HR features like a report scheduler, applicant tracking, performance management, expense management and a new platform, the Integration Center, which puts various HR functions and integrations in one convenient place. Additionally, TriNet is offering 24/7 chat support to help users navigate their HR needs during the pandemic.
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View all our recommendations for PEO services and HR outsourcing services on our best picks pages.
\r\nTriNet's PEO plans are charged on a per-employee basis, with the option to create a customized PEO agreement. Specific pricing amounts are unique to the vertical product you use. TriNet claims its services are priced based on how its customers will utilize the various offerings available to them, so you get exactly what you want at a price that makes sense for you.
\r\nTriNet doesn't require a long-term contract; instead, it will create contract terms based on your needs. You can pay for its tools on an ongoing basis and cancel at any time with a 30-day written notice. Cancellation fees may apply in certain situations.
\r\nWhile TriNet provides a lot of flexibility in its pricing and agreement structure, its features are a bundled solution. It provides unique solutions based on your vertical, but every plan includes access to payroll, risk mitigation, employee benefits, HR and a technology platform. This isn't necessarily a negative; it just means that when you partner with TriNet, you'll be paying for its full-service offering. You need to have at least five employees to sign up, which is standard for PEOs. The PEO plans are easily scalable to grow with your business.
\r\nTriNet has extensive offerings in HR, benefits, payroll, risk management and compliance. You'll have access to the full selection of features, with a team of experts in each area dedicated to providing your business with the right support.
\r\nTriNet designates HR teams by industry, size and location, so your team of HR, payroll, benefits and risk management specialists will be experienced and skilled in your field. It also provides standard HR services, including employee onboarding, recruiting, HR reporting and analytics, performance management, handbook and policy development, and termination and dispute assistance.
\r\nTriNet is partnered with thousands of small businesses, so you'll be joining a large group of people on similar health plans at reduced rates. TriNet provides extensive employee benefits, including health, vision, and dental insurance; 401(k) plans and retirement coverage; commuter benefits; auto and home policies; and wellness programs. It can help you manage your COBRA and ACA compliance, and it even offers employee access to marketplace discounts on several well-known brands.
\r\nTriNet's payroll processing software supports online processing, direct deposits, PTO tracking, expense management and other employee payroll tasks. It can help you prepare your employees' W-2s and ensure your compliance with state and federal tax regulations. It has built-in time and attendance software, so you don't have to worry about tracking your employees' hours or monitoring their schedules.
\r\nTriNet's claims management team can assist your business and employees with workers' compensation and other safety-related claims. It also provides OSHA compliance, safety training, HR guidance, online resources, employment practices liability insurance and claims prevention. The workers' compensation insurance is a pay-as-you-go model, with no deposits or deductions.
\r\nTriNet's proprietary technology platform has a built-in learning management system with more than 500 training courses. Employees can build on their professional education and track the resources they've used. TriNet also tracks your employees' progress toward professional certifications or in continued education. If your business needs more intensive, hands-on training, you can discuss options with your HR consultant.
\r\nTriNet is ideal for businesses that have industry-specific needs for a PEO. Although every TriNet PEO plan comes with the bundled HR services (e.g., payroll, risk mitigation, employee benefits and a technology platform), the company can take it a step further and customize the services based on your vertical. You'll receive HR support from experts in your industry as often (or as seldom) as you need. TriNet offers its plans on a monthly per-employee pricing model, which makes it easy to customize and scale your PEO as needed.
\r\nAnother advantage of partnering with TriNet is its proprietary technology platform. TriNet's platform integrates all of your HR needs into one easy-to-access online portal. Since you and your employees have access to the online portal, everyone on your staff can easily make changes to their plans and view plan information as needed. Because your whole staff will use it, ease of use is important in a PEO, and TriNet embodies that.
\r\nIf you are looking to choose only the specific PEO features you need in order to keep costs low, TriNet may not be your best option. Every plan comes with bundled features like payroll, risk mitigation, benefits, HR and the online portal, so you'll be paying for features you may not need if you are in the very beginning stage of your business's growth. Keep in mind that the bundled features are essential HR services that you will likely need anyway, but some small businesses only need very few and specific PEO features.
\r\nAnother minor disadvantage is that TriNet requires a minimum of five workers. Although this is an industry standard for PEOs and only a minor caveat, it could take TriNet out of the running if you have a very small business.
\r\nTriNet is one of the only companies we reviewed that provides industry-specific support teams. This means your dedicated experts will be savvy on the latest HR practices and other regulatory issues for your industry in addition to their respective fields (HR, payroll, benefits, etc.). TriNet also offers one-on-one HR support, so you can work alongside your HR consultant to develop policies for your business. This tailored approach is crucial for very small businesses looking to grow. You can find additional PEO resources on TriNet's website in the form of articles, a blog, e-guides, videos, demos and webinars.
\r\nWe set up a hypothetical small business and reached out to TriNet's sales team by phone and web chat to get a better idea of its PEO offering. In all instances, the sales representatives we spoke with were very helpful and informative. Instead of pushing us toward a sale, they provided details about the features and made sure all of our questions were answered.
\r\nTriNet is accredited by the IRS and the Employer Services Assurance Corporation (ESAC), and it has an A+ Better Business Bureau rating.
\r\nEditor's note: Is your business looking for a PEO service? Fill out the below questionnaire to have our vendor partners contact you about your needs.
"},"pricing":{"isCapped":false,"isFeatured":false,"primary":true,"selected":"affiliate-widget","widgetId":"10092","widget":{"id":"10092","cta":"Compare Quotes","isExclusive":false},"affiliate":{"cta":"Visit Site","link":"https://businesscom.go2cloud.org/aff_c?offer_id=45&aff_id=1000&source=best-peo-services&aff_sub3=deal|TriNet&aff_sub4=revenue|QT&url_id=1","name":"QT Program"}},"thumbnail":{"path":"https://staging.business.com/images/rz/5d252d237b4374c86c8b459a/trinet.png"}}},{"bullets":["ESAC, IRS and BBB accreditations","5,000+ online courses","Easy-to-use online platform"],"description":"Insperity's HR outsourcing services, risk management, payroll administration and employee benefit plans make it a great option for small business owners. Insperity provides a dedicated team to handle each area of the PEO service.
\r\n\r\n
A standout feature from Insperity is its employee training solutions. Insperity partners have access to thousands of online courses for HR topics and other educational materials. You can also set up onsite or online training sessions tailored to your business's needs. For these reasons, Insperity is our pick as the best PEO for small businesses.
","descriptionTest":"","fullTitle":"Best for Small Businesses","isFeaturedBestPick":false,"isJumpLink":false,"tabTitle":"Best for Small Businesses","review":{"displayName":"Insperity","canonical":"https://staging.business.com/reviews/insperity-peo-services/","id":"e24ee1f2944b10a36039129f5802714f","url":"https://www.insperity.com/","review":{"pros":["Insperity offers training and development materials, including thousands of online books and courses.","Its platform lets you modify information like time and attendance, time-off requests, compensation, 401(k) contributions, and HSA and FSA accounts."],"cons":["Insperity requires most new users to have at least five employees."],"fullReviewTest":"Insperity PEO provides employee benefits administration, payroll processing, risk management resources, and human resource consulting, but where it excels is in employee training and HR outsourcing. Insperity has a five-employee minimum, competitive pricing and a contract structure that can scale with your business. Insperity is our pick as the best PEO for small businesses due to its extensive training resources and flexible services.
","fullReview":"Insperity PEO provides employee benefits administration, payroll processing, risk management resources, and human resource consulting, but where it excels is in employee training and HR outsourcing. Insperity has a five-employee minimum, competitive pricing and a contract structure that can scale with your business. Insperity is our pick as the best PEO for small businesses due to its extensive training resources and flexible services.
\r\n\r\n
View all of our recommendations for PEO services and HR outsourcing services on our best picks pages.
\r\nInsperity's pricing and terms make it an ideal choice for small businesses looking to outsource the logistical headaches that come with running an expanding business. Insperity charges on a per-employee basis. Some PEOs charge businesses a gross percentage of total payroll. While the percentage of payroll option could be more cost-effective for your business, your fee fluctuates as your business's payroll totals change. With a per-employee pricing structure, your costs are somewhat more predictable.
\r\nInsperity doesn't require long-term contracts. A standard contract for a business with less than 150 employees is typically one year, but you can cancel with 30 days' notice. Although you must have a minimum of five employees to qualify for Insperity's PEO services, you may be able to work around this minimum (with approval) if you meet specific criteria.
\r\nInsperity PEO provides bundled solutions. These bundles can be tailored somewhat to your business; for example, you can add employment screening, expense management, insurance services, performance management, recruiting services and retirement services for additional fees.
\r\nIf you want individual HR services without the co-employment model, there is Insperity's Workforce Acceleration program. This option still requires you to enroll in Insperity's payroll service, but every other service is offered a la carte (e.g., accounting, recruiting, insurance, 401(k), retirement services, etc.)
\r\nInsperity offers stellar training resources and solid offerings in all the major PEO service areas. With Insperity, you and your team have access to a comprehensive suite of HR functions, including the following:
\r\nBesides its PEO services, Insperity offers individual HR services and consultancies through Workforce Acceleration. Make sure, however, that you address the details of the agreement and how it would shift from a standard PEO bundle with the company. For instance, PEOs come with a co-employment agreement as part of the bundle. Signing up for individual HR services, though, nullifies the co-employment arrangement. This aspect of service is not good or bad either way; it just depends on what's best for your business.
\r\nTo use Insperity's a la cart HR services, you will still be required to enroll in Insperity's payroll service. Here are some, but not all, of the HR services Insperity offers:
\r\nInsperity's breadth of services is one of the largest of the companies we reviewed.
\r\nThe biggest advantage for small businesses partnering with Insperity is the wealth of training and resources they get access to. This allows small businesses to stay up to date with important training and regulations. It can also be used for employee development and professional growth. Having access to these learning opportunities can be a great selling point for growing businesses that need to recruit new employees.
\r\nAnother advantage of Insperity is its intuitive online platform. Business owners and employees can log into their Insperity portal to access and modify important information like time and attendance, time-off requests, compensation, 401(k) contributions, HSA and FSA information, training courses and more. This is a great way for small businesses to keep all of their HR functions in one location.
\r\nInsperity requires a small business to have a minimum of five employees to qualify for its services. Keep in mind that this is a standard minimum requirement among many PEOs, and Insperity may be able to make exceptions (with approval) to those businesses that qualify. If you do not meet the five-employee minimum, you can either speak to a representative to learn more about how to meet the exceptions for that or consider another HR service.
\r\nInsperity provides a dedicated service team for its small business clients. This includes defined experts in each service area, like HR management, payroll, performance, recruitment, safety and benefits. Insperity also sets you up with a point person to facilitate your services and connect you to various experts depending on your needs. For general PEO information, you can access several resources on its website, including Insperity's blog, checklists, demos, e-books and webinars.
\r\nWe tested Insperity's customer service by calling as a hypothetical small business owner interested in partnering with a PEO. We interacted with Insperity through email, webchat and phone. The sales representatives we interacted with took the time to assess our business's needs and determine what service would be best suited for our business. They didn't try to push a sale. This is a testament to the level of care and consideration Insperity provides to its customers.
\r\nEditor's note: Need a PEO service for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.
\r\n"},"pricing":{"isCapped":false,"isFeatured":false,"primary":true,"selected":"affiliate-widget","widgetId":"10092","widget":{"id":"10092","cta":"Compare Quotes","isExclusive":false},"affiliate":{"cta":"Visit Site","link":"https://businesscom.go2cloud.org/aff_c?offer_id=47&aff_id=1000&source=best-peo-services&aff_sub4=revenue|QT&aff_sub3=deal|Insperity&url_id=1","name":"QT Program"}},"thumbnail":{"path":"https://staging.business.com/images/rz/5f1a02995a215e81748b4567/Insperityy_logo.png"}}},{"bullets":["Fortune 500-caliber benefits","No long-term contracts","Dedicated customer support"],"description":"ADP TotalSource represents more than half a million employees across the nation. It offers extensive services that are ideal for businesses of all sizes. What set this company apart from others we reviewed, however, was the attention to detail and support we received from its sales team.
\r\n\r\nPart of our review process involves posing as small business owners shopping for a PEO for our business. ADP was one of the few companies that extended a service brochure to us. When we explained that we were looking at competitors, the representatives offered advice on what questions to ask and what services to look for in our search. This level of attention was unmatched by other sales teams we reviewed. TotalSource's friendly and helpful sales team, in addition to its robust PEO services, are why we selected it as the best PEO for customer service.
","descriptionTest":"","fullTitle":"Best Customer Service","isFeaturedBestPick":false,"isJumpLink":false,"tabTitle":"Best Customer Service","review":{"displayName":"ADP TotalSource","canonical":"https://staging.business.com/reviews/adp-totalsource/","id":"824ae6335245ca242ca448f79d09e47b","url":"https://www.adp.com/our-products/totalsource/why-totalsource.aspx","review":{"pros":["ADP is a national company that has major bargaining power with healthcare companies.","It has intuitive and simple dashboards where you can view and modify your benefits."],"cons":["ADP does not list its HRO pricing online, so you must contact a representative for a quote."],"fullReviewTest":"","fullReview":"Small businesses that partner with ADP get top-of-the-line human resource services, including payroll, compliance, risk management, employee benefits, training and development, and great customer support. ADP TotalSource provides personalized PEO services throughout all 50 states, and even offers international client service through their partnership with Globalization Partners. In addition to its fantastic customer service, ADP's benefits offering is ideal for any small business seeking outsourced HR services. Thanks to its impressive offering, ADP is a double winner, it's our best pick for customer service in our PEO category and best for benefits in our human resources outsourcing (HRO) category. ADP is accredited by the Better Business Bureau, earning an A+ with the rating agency. It is also certified by the IRS and accredited by the Employer Services Assurance Corporation.
\r\nView all of our recommendations for PEO services and HR outsourcing services on our best picks pages.
\r\nSmall businesses can be certain they are signing up with a great PEO or HRO, regardless of which ADP arrangement they choose. All ADP plans are scalable, although smaller businesses may be better suited to the co-employment model of the PEO offering, since it offers more flexibility in employee requirements.
\r\nAlthough ADP works with businesses of all sizes, small businesses need to have a minimum of five employees to be eligible for ADP TotalSource. ADP doesn't require long-term contracts, and it doesn't charge cancellation fees, but it asks that you provide 30 days' written notice to end services with the company. These minimums and cancellation requirements are standard requirements among the PEOs we reviewed.
\r\nIf you partner with ADP, you're primarily investing in a bundled PEO solution. This means that the basic PEO services are all included for one lump sum. Pricing isn't listed on the website, instead, you will have to contact an ADP representative to receive a customized quote.
\r\nWhen we spoke with an ADP representative, we were informed that you have the option to purchase the following items for additional fees:
\r\nADP's human resources outsourcing option is better suited for small businesses that only need assistance with a few different HR functions. Small businesses that choose this pricing model must have a minimum of 25 employees. Similar to the PEO pricing, ADP HRO contracts are very flexible and can range from month-to-month to multiyear terms, depending upon client size and offerings selected.
\r\nWhile some HR items do come bundled, there are choices available across the spectrum, so small businesses have the option to select the outsourcing features most applicable to their business. ADP's offerings and pricing schedules are designed to be fully scalable, supporting client growth (and when needed, contraction). Since HRO plans are customized to your business's needs, you will need to speak with a representative for a price quote.
\r\nADP TotalSource has a full-fledged PEO, with comprehensive solutions in payroll, benefits, HR management and training. Its PEO services include the following:
\r\nADP offers HRO services, too, which often make sense for small businesses looking for limited HR support. The agreement will take a different shape from your PEO service, but you'll be able to enjoy many of the same features, including payroll outsourcing, pay and tax administration, an online HR and payroll platform, and employee handbook creation. ADP offers expert business knowledge by partnering with accountants, brokers, financial advisors, private equity, franchises, member organizations, software providers and ERPs.
\r\nAs a major HR provider in the U.S., ADP can fill almost any HR need your business has. The contract structure differs from its PEO offering because it doesn't require a co-employment model. This may add flexibility to your service, but you'll have to work directly with ADP to find the right HRO agreement for you and your business.
\r\nOne of the highlights of ADP's HRO offering is its benefits packages. As one of the largest HR support providers in the nation, ADP has solid benefit options for small businesses. For example, ADP provides an employee assistance program service, a compliance and learning curriculum, and an employee discount plan. Clients also have the option to procure their own benefits or benefit plans, in addition to leveraging ADP's insurance services.
\r\nADP has an intuitive online platform and simple dashboards where you can view your benefits, make adjustments, and handle all your related services. ADP also offers an employee resource through MyLife Advisors, where employees can contact an ADP representative to receive assistance on HR, payroll and benefits.
\r\nADP is a very large and reliable company, allowing you to get the level of coverage and support you need. ADP can provide human resource services in all 50 states. It also has a mobile app that users can access to manage their HR services on the go. Many smaller PEOs lack full coverage and accessibility, which can be challenging for businesses that operate in many states throughout the U.S.
\r\nADP also provides exceptional customer service. Each TotalSource client receives a dedicated ADP team to help with any questions, and backup support is available upon request. ADP support can be reached by phone and chatbot. Each ADP client is treated with care, which is essential for small businesses. A PEO or HRO with great customer service can make a major difference to you and your team.
\r\nADP's employee minimum may be a challenge for very small businesses. For example, there is a five-employee minimum to sign up with ADP TotalSource, and a 25-employee minimum for ADP's HRO service. Although an employee minimum is somewhat common for most PEOs and HROs, it can be inconvenient for very small businesses with just a couple of employees. This minor drawback only impacts those with very small teams.
\r\nAnother drawback to using ADP is its lack of pricing information online. Since ADP provides custom quotes, they don't list pricing on the website. They bundle their PEO features with a few services offered for additional pricing, and their HRO features are offered separately, but we were not able to find those prices listed online. While this is not a major drawback, it can be inconvenient for those who want an upfront idea of how much they can expect to spend on services in comparison to other options.
\r\nDespite ADP's size, its customer service was stellar. Representatives readily answered our questions and were not pushy or rude. ADP provides a full-service team to its customers, in addition to experts in each specific area (HR, benefits, payroll, etc.).
\r\nLike many PEOs we evaluated, ADP provides a point person to facilitate your services and provide you with HR support. The difference is that ADP's point person is certified by the Society for Human Resources Management, meaning your business can utilize the knowledge and support of an accredited HR expert.
\r\nWhen evaluating ADP, we spoke with the company's representatives by email, live chat and phone. In all instances, ADP's sales team went above and beyond our customer service expectations. They provided solid information and advice about the services and additional details based on business needs. This level of attention from a company as big as ADP signals the value of this organization's services. It's also why ADP earned our pick for the PEO with the best customer service.
\r\nADP is accredited by the Better Business Bureau, earning an A+ rating. It is also certified by the IRS and accredited by the Employer Services Assurance Corporation, which means that it has undergone and passed rigorous scrutiny and evaluation.
\r\nEditor's note: Need a PEO service for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.
"},"pricing":{"isCapped":false,"isFeatured":false,"primary":false,"selected":"affiliate-widget","widgetId":"10092","widget":{"id":"10092","cta":"Compare Quotes","isExclusive":false},"affiliate":{"cta":"Visit Site","link":"https://businesscom.go2cloud.org/aff_c?offer_id=43&aff_id=1000&source=best-peo-services&aff_sub4=revenue|QT&aff_sub3=deal|ADP&url_id=1","name":"QT Program"}},"thumbnail":{"path":"https://staging.business.com/images/rz/5c89295c5a215eaf098b456b/ADP.png"}}},{"bullets":["Scalable PEO plans","Nationwide customer support","Mobile-friendly PEO platform"],"description":"Paychex is ideal for midsize businesses because of its scalability and the HR generalist the company provides to help you manage your services. The HR generalist remains the point person as your business grows and changes, which means you'll receive personalized coverage even as your business grows.
\r\n\r\nNovember 2020: Paychex has added new features to its platform to better support businesses, and their employees, during the COVID-19 pandemic. The new services include a PEO protection plus package that provides businesses with cyber liability and employment practices liability insurance. In addition, expanded features now include EEO-1 compliance; tax lookup, a resource where businesses can quickly look up state, local, and unemployment taxes; a peer review feature for work teams; and a new employee user experience, where employees can track their hours, request time off, and review timecards from their smartphones.
\r\n\r\nApril 2020: Paychex is continuing to update its online technology to aid customers during the coronavirus (COVID-19) pandemic. The government recently approved the Paycheck Protection Program, which offers financial assistance for small businesses to pay their employees and other operating costs. To help small businesses quickly and conveniently apply for this program, Paychex has updated its technology platform to package all the data that a small business owner would need for the application in one place.
\r\n\r\nPaychex is certified by the IRS and accredited by the Employer Services Assurance Corporation. Not all the companies we reviewed had this level of certification. Paychex represents thousands of employees and businesses of varying sizes, so you'll be joining a company that has the infrastructure to support your business as it grows. For these reasons, Paychex is the PEO we recommend for midsize businesses.
\r\n\r\n","descriptionTest":"","fullTitle":"Best for Midsize Businesses","isFeaturedBestPick":false,"isJumpLink":false,"tabTitle":"Best for Midsize Businesses","review":{"displayName":"Paychex","canonical":"https://staging.business.com/reviews/paychex-peo-services/","id":"68c28fc6696da1da21abaf6917c76074","url":"https://www.paychex.com/peo","review":{"pros":["Paychex offers tailored, contextual learning opportunities with the Help Center.","Paychex proactively monitors employment laws and regulations to help you stay compliant."],"cons":["Online support communication can be delayed at times."],"fullReviewTest":"Paychex provides businesses with comprehensive PEO features, including risk management, payroll, employee benefits, HR administration, and numerous onsite and virtual training solutions. This nationwide company represents thousands of employees and businesses of all sizes, so you'll be joining a provider that is equipped to handle your organization. It also assigns you an HR generalist who remains your point person as your business grows and a mobile application so you can access your services on the go. Plans are scalable as your company grows. Paychex is certified by the IRS and accredited by the Employer Services Assurance Corporation (ESAC) and the Better Business Bureau, with an A+ BBB rating. For these reasons, Paychex earns our pick for best PEO service for midsize businesses.
","fullReview":"Paychex provides businesses with comprehensive PEO and HRO features, including risk management, payroll, employee benefits, HR administration, and numerous employee training solutions. This nationwide company represents thousands of employees and businesses of all sizes, so you'll be joining a provider that is equipped to handle your organization's needs. It also assigns you an HR professional, who remains your point person as your business grows, and a mobile application, Paychex Flex, so you can access your services on the go. Plans are scalable as your company grows. 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.
\r\n\r\n
View all our recommendations for PEO services and HR outsourcing services on our best picks pages.
\r\nPaychex has convenient pricing and terms for small and midsize businesses. Businesses looking for a co-employment model are better suited to a PEO plan, whereas those looking to outsource a few HR functions are better suited to an HRO plan. Regardless of which option you choose, every plan is scalable to fit your business needs.
\r\nLike many PEOs we reviewed, Paychex charges on a per-employee basis. Some companies we reviewed charge businesses a certain percentage of their total payroll. The latter could be a better deal if you're a large business with a lot of employees, but it also means your costs fluctuate as your payroll changes. For a midsize business that likely has a much larger payroll than a small business, this could have major implications. The per-employee structure allows you to predict and budget for what you owe Paychex.
\r\nPaychex PEO plans are available to organizations with at least five employees. The cost of your PEO service depends on how many employees you have each year. Standard PEO contracts are for one year, with per-employee pricing. PEO packages include bundled services; however, plans are scalable, and you have the option to customize certain aspects, like master medical or master workers' compensation policies. If you are interested in working with Paychex under the PEO model, you'll want to discuss the service and feature requirements with your sales representative.
\r\nSince they are available to businesses of all sizes, even those with just one employee, Paychex HR outsourcing plans offer a lot of flexibility. They do not enforce any minimum salary requirements, and there is no required contract length, just a 30-day cancellation notice condition with the Paychex service agreement.
\r\nPaychex is great for small businesses that have unique HR outsourcing needs, as they offer a variety of features packaged into different HR outsourcing options. HR outsourcing plans are scalable; as an organization grows and needs change, they can add services or products along the way.
\r\nPaychex's PEO has multiple features that differentiate it from its competitors. Its training offering, which touches on relevant topics such as HR onboarding and safety, is one of the most extensive of any company we reviewed. Paychex also offers thorough payroll processing software and HR policy development.
\r\nSmall businesses that don't want to enter into the PEO agreement can still access many of the same great HR outsourcing services that Paychex provides. PEOs ascribe to a co-employment model where your employees appear on the books of a national organization for tax and labor law advantages. The HRO model doesn't have this type of contractual agreement; you can scale your services and enjoy some of the same support under a different arrangement.
\r\nSmall businesses can access a variety of features through Paychex's HR outsourcing plans. For example, you can choose from functions that aid with payroll, risk and compliance, employee benefits, and HR administrative services.
\r\nInstead of paying for HR features you don't need, you can select the HR outsourcing solution that works best for your business based on the level of HR support that you require. Paychex offers many of the same HR functions to both PEO and HR outsourcing customers – if there is a service you need, speak to a representative about acquiring it for your plan.
\r\nPaychex HR outsourcing customers fluctuate in size and complexity, so they offer service plans to accommodate those differences. As your organization grows and HR outsourcing needs change, you can easily add services or products. Some companies start with HRO services and then scale to PEO services. Work closely with your Paychex representative to find the right services for your SMB.
\r\nPaychex has unveiled several new features geared specifically toward helping businesses with the current HR challenges they face during the COVID-19 pandemic. This includes HR Connect, conversations, an OSHA dashboard, worker templates and new live reports.
\r\nBusinesses of all sizes receive hands-on customer support from Paychex. PEO customers get access to a dedicated payroll account manager and a human resource generalist. One-on-one customer support is essential for growing businesses, since more employees generally equals more questions. You can also access a wealth of knowledge and training through Paychex's help center and other online resources.
\r\nAnother advantage to partnering with Paychex is its dedication to clarity. If you are curious about Paychex's services, you can access a variety of demos in areas like analytics and reporting, the online dashboard, general ledger, health and benefits, help options, hiring, HR, the payroll center, and time and attendance. This is ideal for midsize businesses that know what they want in a PEO and need firsthand experience with the service before committing to it.
\r\nPaychex has an advanced, mobile-friendly platform that provides a consistent experience across mobile and desktop devices. You and your employees can use the Paychex Flex app on iOS and Android devices, making Paychex a convenient service to access on the go.
\r\nYou need at least five employees on your payroll to qualify for Paychex's PEO services. This is a standard requirement among the companies we evaluated, but it's important for very small businesses to know.
\r\nSince Paychex's PEO and HR outsourcing services are best suited for small and midsize businesses, this employee minimum shouldn't be an issue for most interested parties. Paychex HRO services, though, only require a minimum of one employee, so smaller teams may be better suited to this structure.
\r\nAnother negative consideration is Paychex's Better Business Bureau profile. There were multiple negative customer reviews on Paychex's BBB page when we reviewed it – more than what other companies we reviewed had. However, Paychex addressed every review and worked through the issue with the customer. Paychex has an A+ rating with the BBB.
\r\nWhen we asked Paychex customers what they thought the company could do better, they referenced the communication features. The company offers online chat and email options, but online communications can be delayed at times. To remedy this situation and receive immediate assistance, it is better to call a representative or reach out directly to your dedicated HR point of contact.
\r\nPaychex provides a designated team of experts, each one specializing in a different area of your PEO plan. You get a dedicated HR generalist who acts as a point person between your business and the various experts you need. This person doubles as an HR consultant, so you can work through your HR questions and issues with them as well. Regardless of how your business grows or changes, your HR generalist will remain your go-to partner who knows and understands your business's needs. You can also access several online resources, such as articles, webinars and PEO-related calculators.
\r\nWe interacted with Paychex sales representatives to gauge the company's service. We reached out over live chat, email, and phone to gain insight into the overall Paychex customer support experience, posing as a small business owner of a hypothetical business. In all instances, representatives were informative and polite, helping us learn more about the company's services without pushing for a sale. They also helped us learn more about the PEO and HRO models and what we could expect as business owners with Paychex.
\r\nEditor's note: Need a PEO service for your business? Fill out the below questionnaire to have our vendor partners contact you with free information.
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| \r\n | Oasis | \r\nInsperity | \r\nPaychex | \r\nTriNet | \r\nADP TotalSource | \r\n
| Accreditations | \r\nESAC, IRS, BBB | \r\nESAC, IRS, BBB | \r\nESAC, IRS, BBB | \r\nESAC, IRS | \r\nESAC, IRS, BBB | \r\n
| Contract required | \r\n1 year | \r\n1 or 2 years | \r\n1 year | \r\nVaries based on customer's needs | \r\nNo | \r\n
| Minimum # of employees | \r\n5 | \r\n5 | \r\n5 | \r\n5 | \r\n5 | \r\n
| Pricing structure | \r\nPer employee | \r\nPer employee | \r\nPer employee | \r\nPer employee | \r\nBased on multiple factors | \r\n
| Customer support | \r\nA payroll account manager and human resource generalist | \r\nAn HR manager, a client liaison and safety consultant, and specialists for HR, payroll, performance, benefits and recruiting | \r\nA payroll account manager and human resource generalist | \r\nVaries based on customer's needs | \r\nA dedicated team of experts and a payroll specialist | \r\n
PEOs offer two main pricing structures for small and midsize businesses: They either charge a per-employee fee (roughly $40-$160 per month) or a percentage of your total monthly payroll (roughly 3%-12%). There are advantages and disadvantages to both types of pricing. The best pricing model for your business depends on factors like your business type, number of employees and the overall PEO services you want.
\r\nProfessional employer organizations typically do not offer free trials of their HR services, and contract lengths and structures vary by company. Some PEO companies only offer long-term contracts, while others don't require any contract at all. Cancellation policies vary, but business owners typically need to provide at least 30 to 60 days' notice before canceling a PEO service. Some companies allow you to leave at any time for any reason; others charge you a fee for leaving.
\r\nWithin each of our reviews, we've listed the PEO's cancellation policy. It's critical, though, that you ask about the PEO's contract and cancellation policy before you reach an agreement – you want the freedom and flexibility to cancel the service if you need to.
\r\nBelow are other crucial items to address with the PEO service you're considering. You should go over this information – even though it may be available on the company's website – with a member of the PEO's sales team to gain a complete understanding of the PEO's services.
\r\nOne 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 offer a one-size-fits-all solution, whereas others offer customizable services that you can add or remove to fit your small business's needs. There are advantages and disadvantages to both. One bundled solution means you can grow into all the features without changing the pay structure, while an a la carte option is more tailored to your business and can save you money if you only need a few features, such as payroll and health insurance.
\r\nInquire upfront about additional fees. For example, some companies charge for service cancellation. Make sure you thoroughly review the material the sales team gives you to spot any fees associated with service. If you're not sure, ask the sales representative. Also keep in mind that the pricing model, whether it charges per employee or as a percentage of income, does not include additional costs for healthcare and other employee benefits plans.
\r\nMany of the PEOs we evaluated have an employee minimum – that is, they require small businesses to have over a certain number of employees, usually five or 10, to qualify for their service. If you don't qualify, many companies offer administrative services organization (ASO) or HR outsourcing services, which may make sense for your business. While these services may be similar to the PEO model, they are not co-employment agreements.
\r\nSome companies also structure their services so that a certain number of employees need to enroll in health benefits for your business to qualify for service. Others require a minimum monthly salary if your business is below a certain employee threshold. Make sure you understand what your PEO expects from you. You don't want to have to cancel your services or pay an additional fee for falling below the PEO's employee minimum, for example.
\n"}},{"__typename":"SectionBuyingGuide","id":"what-is-a-peo","isInToc":true,"type":"buying-guide","title":"Buying Guide","containers":[{"title":"What Is a Professional Employer Organization (PEO)?","html":"\nA professional employer organization (PEO) is a company that can take care of human resource responsibilities, primarily for small and midsize companies. Most PEOs can manage HR functions like employee training and development, risk and compliance, workers' compensation, payroll, and benefits – with some offering these HR services bundled together in a preset package, and some offering customizable plans with a la carte features.
\r\nPEO companies primarily differ from typical HR outsourcing services by operating under a co-employment model, meaning your employees will appear on the PEO's books for legal and tax purposes. This allows PEOs to act as massive corporations with hundreds of thousands of employees. They can negotiate contracts with employee benefits providers for more favorable rates on unemployment and workers' compensation insurance. It also gives them the power and scope to build and leverage powerful time-tracking and payroll technology for small businesses.
\r\nOnce you sign on with a PEO, you'll work closely with customer success managers and other team members to build out the services you need for your small business. As your business grows, your PEO will adjust to your needs and work with you. Working with a PEO under the co-employment model is essentially partnering with a team of specialists to build out the administrative and back-end processes of your organization. If it makes sense for your business financially, these organizations can take out a lot of the stress (and handle most of the legwork) of running your business so you can focus on more pressing needs.
\r\nRoughly 175,000 small and midsize businesses partner with PEOs to get high-quality benefits and proper HR support to keep their businesses running smoothly. There are more than 900 PEO providers serving and operating in all 50 states. A PEO must adhere to both state and federal regulations, so some companies are divided up by region or even state.
\r\n\r\n
As you search for a PEO, keep your own state and region in mind – some PEOs are only qualified to serve small businesses in some states, whereas others have a wide reach, extending across the world through global partnerships. Most of the companies we reviewed are qualified to offer coverage in all 50 states. If you're curious about whether a certain PEO operates in your state or not, you can look it up in the National Association of Professional Employer Organizations' directory.
\n"},{"title":"Professional Employer Organization Features","html":"\nPEOs provide several beneficial resources for small businesses. Since they focus on HR tasks and administration, you are left with more time to focus on your business. On top of that, PEOs offer better benefits to your employees than you might have been able to on your own. This can help you attract and retain top talent. Many employer organizations use current technology, mobile applications, and online portals for small businesses and employees to easily access important information, like payroll, benefits and training courses.
\r\nAlthough not every business will need every PEO feature available, here are some of the top PEO features that could help your business.
\r\nOne advantage to partnering with a PEO is having a professional organization take care of all your human resource services. PEOs can create your employee handbooks and policies, onboard your new hires, cover HR administrative tasks, offer unemployment assistance, and help you with compliance reporting and employee termination. They often have online reporting tools, employee self-service and advanced HR technology.
\r\nSince PEOs co-employ multiple businesses' employees at once, they can offer better employee benefits than you might otherwise be able to offer. PEOs typically offer insurance plans like medical (such as PPO, POS, EPO, HNO and ACO plans), dental, vision, life, and long- and short-term disability insurance. Some offer additional plans like flexible spending accounts, health savings accounts and heath reimbursement arrangements.
\r\nEmployees often receive access to retirement plans, such as 401(k) and Roth IRA plans, as well as additional benefits like commuter and parking discounts, home and auto insurance discounts, and an Employee Assistance Program (EAP). Many employers receive Affordable Care Act guidance and compliance, while their employees get access to consulting services by licensed benefits professionals. The benefits will vary by PEO company, as will the affordability.
\r\nPEOs offer small businesses an affordable way to package all of their HR responsibilities together, including payroll and taxes. When you partner with a professional employer organization, that company is technically the employer of your staff – meaning your staff is on its payroll books. This covers much more than paychecks. PEOs can process your employee payroll with CPAs, prepare and distribute payroll checks, employ direct deposit, and process employee liens and garnishments. PEOs take care of your employees' paid time off, track their sick and vacation time, and prepare and distribute their W-2s.
\r\nMany PEOs offer quarterly and year-end state and federal deposits and filings, along with detailed management reports. The PEO you partner with should be able to take care of all your employee payroll needs. By lumping this cost into the PEO's grand total, you can ultimately save money on your payroll being handled by financial professionals. A PEO allows you to operate your business with the knowledge that your employees are being paid properly and on time.
\r\nManaging risk and legal compliance is an important part of running your small business. However, if you work with a PEO, it can manage much of that for you. Depending on your business's industry, this could be a great deal of work taken off your plate. The level of compliance and risk that a PEO manages will vary, but many PEOs will perform tasks like managing ACA coordination and compliance, running onsite safety inspections, performing accident investigations and job hazard analyses, allocating workers' compensation coverage, and maintaining OSHA compliance for your business.
\r\nA PEO ensures your business takes the appropriate measures to maintain workplace safety. Some PEOs provide Employment Practices Liability Insurance coverage, safety and loss prevention programs, Health Insurance Portability and Accountability Act (HIPAA) compliance, and Consolidated Omnibus Budget Reconciliation Act (COBRA) insurance. There are several other compliance measures that PEOs can take to keep your employees safe and ensure that your business is abiding by legal employment guidelines. This alone is reason enough for some businesses to partner with a PEO.
\r\nA benefit that some PEOs offer is employee training and development. Many offer online and onsite training courses that your employees can take to enhance their skills. They can access courses on interviewing, recruitment, communication, sexual harassment and discrimination, hiring and firing, disciplinary actions, leadership, social media, workplace technology, and even industry-specific training.
\r\nNot all PEOs offer continued education courses, and the ones that are available vary by company. However, at the very least, most PEOs will train your staff on necessary workplace concepts like avoiding sexual harassment and discrimination.
\r\nMake sure the PEO you partner with provides you a designated team of experts who can handle your HR, risk management, benefits and payroll needs. You want to partner with a company that provides specialists in each area, as well as a relationship manager who can help you use the services to your full advantage. Sometimes the HR consultant doubles as a relationship manager, which is also a good option. The best companies have HR consultants who are certified by the Society for Human Resource Management. SHRM certification ensures that your account coordinator is more than just a company relationship manager.
\r\n\n"},{"title":"Professional Employer Organization FAQs","html":"\n
When small businesses offer competitive benefits to potential employees, they are in a better position to attract and retain top talent; this is where PEOs come in. A PEO allows you to offer your employees affordable health benefits with reputable health insurance companies, and additional benefits like supplemental insurance plans (e.g., FSA, HSA and HRA), employee perks (e.g., home and auto insurance discounts, parking and commuting benefits), and retirement savings accounts like 401(k) and Roth IRA plans.
\r\nAdditionally, a PEO can help you maintain risk and legal compliance. This can reduce legal problems for your business, helping you earn a positive reputation in the community and cut down on employee turnover. Since many employees seek an employer that can offer continued education, partnering with a PEO that offers training and development courses can entice top talent as well.
\r\nAlthough seemingly similar, PEOs and staffing companies serve different HR needs. The primary benefit of a PEO is to take care of tedious and time-consuming HR tasks like administrative work, payroll, employee benefits, risk and compliance, and employee training and development. By operating under this co-employment model, a small business can focus on growing their business while the PEO takes care of all HR functions. This is a cost-effective and low-risk option for small business owners.
\r\nA staffing company, on the other hand, primarily serves short-term or temporary employment needs. Staffing companies do handle other HR-related tasks, like payroll and unemployment taxes, but often with much higher fees for these services. Small businesses should only consider partnering with a staffing company if they are looking for temporary staffing.
\r\nA professional employer organization is an affordable HR option for many small businesses, as it can handle all your HR functions under a co-employment model. A PEO removes the burden of many HR tasks and gives small businesses the peace of knowing that critical functions like risk and compliance are being managed by HR experts.
\r\nHRO services can handle many of the same HR functions as a PEO, but they operate as a separate entity instead of through an employer partnership. Businesses that use HRO services can pick and choose the HR functions they need to outsource, whether that be just payroll and employee benefits or a full-service HR suite. HR outsourcing is better for larger companies that only need assistance with specific HR tasks.
\r\nThere are many ways a professional employer organization can positively impact your bottom line. For example, a PEO handles many of the tedious HR administrative tasks that a member of your team would otherwise have to handle, which can save you time and money. If you don't have to focus on HR functions, you are available to work on growing your business and your bottom line. Since a PEO manages employees at scale, it can also help your bottom line by lowering your employment costs.
\r\nThe best PEO service providers satisfy your human resources needs, whether they're HR administration, employee benefits, payroll, workers' comp, risk and compliance management, or training and development. They also use the latest technology for businesses and employees to easily access their online platforms and information. Great providers offer HR expertise and customized, one-on-one assistance to help you navigate your PEO services, regardless of how long you've worked with them. The best professional employer organization services are transparent and easy to communicate with. The best PEOs are also accredited by the Employer Services Assurance Corporation (ESAC) and the Internal Revenue Service (IRS).
\r\nWhen you partner with a PEO, that company is technically a co-employer of your staff. This can cost you some internal control over your team and processes, possibly having an outside influence on your company culture. Having an outside company manage your payroll and taxes might make you feel a lack of security as well. For these reasons, it is important to partner with a PEO that you trust and believe in. The right PEO can be a great asset to your company.
\r\nTransitioning your HR processes over to a professional employer organization is a big undertaking, but it can ultimately simplify your human resources responsibilities. The average PEO transition takes roughly four weeks, starting at the beginning of a payroll cycle, but it could take anywhere from three to six weeks. During this time, the PEO will work closely with your team to ensure all the proper paperwork is complete and successfully transitioned.
\r\nOne advantage of using a professional employer organization is the ability to recruit top candidates. PEOs typically offer small businesses access to comprehensive employee benefits that they otherwise might not be able to afford, and these benefits can greatly impact the quality of employees they can hire and retain.
\r\nAdditionally, PEOs employ experienced HR professionals who can help small businesses implement recruiting and hiring best practices. They understand the current employment laws and regulations that apply to recruiting, so they can help small businesses stay compliant.
\n"},{"title":"Community Expert Insight","html":"\nAs part of our research, we reached out to the community to see what PEO services small businesses are choosing and why. This helped us to identify the most valuable features of a PEO.
\r\nAaron Bailey, general manager at DZone and previous COO of business.com, was responsible for selecting a PEO for roughly 80 employees. Bailey said the most important feature he looked for was employee benefits.
\r\n\"The most important factor came down to medical benefits and how they compared to what we were used to,\" he said. \"Next was 401(k) – how their plan, funds and fees stacked up against what we had in place already. Also, the monthly fees all PEOs have … range between vendors.\"
\r\nBailey ultimately chose to partner with Insperity because it offers great benefit coverage in his region. He also said Insperity's tools are better than competitors' options.
\r\n\"The user experience was better, the training and development options were very good, [and] their mobile app was very easy to use and had frequent improvements to it,\" said Bailey. \"They're also a well-established company that gets a lot of positive press around employees and customers first.\"
\r\nAnh Trinh, founder and CEO of 2-year-old media startup GeekWithLaptop, selected Oasis for his team of eight employees because it is a reliable company that specializes in small businesses and startups. He also valued Oasis' ability to provide risk management and workers' compensation insurance for his small startup.
\r\n\"Choose the PEO based on their specialties,\" said Trinh. \"Some PEOs are good at handling big businesses, while others are good for startups. Identify what you need right now and go from there.\"
\r\nMax Prokell, founder and CEO of Venta Marketing, was responsible for choosing a PEO client for his marketing company of 15 employees. Since user experience was a top priority for him, he chose TriNet for its Fortune 500-level benefits, risk management, dedicated HR team, and seamless onboarding and tax paperwork review process.
\r\n\"The first sign of a great PEO comes down to their technology and the implementation of a great user experience,\" said Prokell. \"Any PEO could have the most advanced platform on the market, but if my employees hate the interface, then the technology loses its value. We selected our PEO partner because I knew that my employees would appreciate their technology and a mobile-first approach to HR services.\"
\n"},{"title":"Our Methodology","html":"\nWe compiled a list of almost 60 PEO services after analyzing industry trends, considering companies featured on other review sites, reviewing the top industry players and searching the National Association of Professional Employer Organizations (NAPEO) website.
\r\nAfter analyzing the companies' small business services, establishing whether they were national PEOs, reviewing their accreditation and NAPEO membership, and grading their online presence, we whittled the list down to 30 companies. We conducted further research on these 30 PEOS by diving deep into their services and reviewing their HR, payroll, benefits, and risk management offerings. We also established the types of training resources and customer reviews each company had.
\r\nFrom this list of 30 companies, we chose five that stood out as the best for customer service, startups, small businesses, midsize businesses and tailored industries. We then reviewed each company's pricing structure, contract requirements, online and mobile access, available services, and standout features.
\r\nWe dug even deeper into these five best picks, evaluating the customer service and features that each plan offers. We contacted our finalists by phone, live chat and email, speaking as small business owners. We inquired about each PEO's plan structure, pricing and cancellation policy. The five companies withstood each round of our testing and stood out in all of our interactions with them.
\n"}]},{"__typename":"SectionContainer","id":"how-do-peos-work","isInToc":true,"type":"container","title":"Co-Employment: How Do PEOs Work?","container":{"isBuyingGuide":false,"html":"\nPEOs operate under a co-employment model, where your employees will appear on the PEO's books for legal and tax purposes. This allows PEOs to act as massive corporations with hundreds of thousands of employees. The co-employment model means these companies can negotiate contracts with employee benefits providers for more favorable insurance rates on workers' compensation insurance and unemployment insurance. It also means they have the power and scope to build and leverage powerful time and attendance and payroll technology for small businesses.
\r\nOnce you sign on with a PEO, you'll work closely with customer success managers and other team members to build out the services you need for your small business. Many of the companies we reviewed offer a la carte services, where companies can sign up for individual services instead of full bundles.
\r\nAs your business grows, your PEO will adjust to your needs and work with you. Working with a PEO under the co-employment model is essentially partnering with a team of specialists to build out the administrative and back-end processes of your organization. If it makes sense for your business financially, these organizations can take a lot of the stress (and handle most of the legwork) out of running your business so you can focus on more important needs.
\r\nMore than 150,000 small businesses partner with PEOs across the country to get high-quality benefits and proper HR support to keep their businesses running smoothly. There are more than 800 PEO services companies serving and operating in all 50 states. A PEO must adhere to both state and federal regulations, so some companies are divided up by region or even state.
\r\nAs you search for a PEO, keep your own state and region in mind – some PEOs are only qualified to serve small businesses in some states. Most of the companies we reviewed are qualified to offer coverage in all 50 states. If you're curious about whether a PEO operates in your state or not, you can look it up in the National Association of Professional Employer Organizations' directory.
\n"}},{"__typename":"SectionContainer","id":"what-to-expect-in-2021","isInToc":true,"type":"container","title":"What to Expect in 2021","container":{"isBuyingGuide":false,"html":"\nThe coronavirus pandemic forced many businesses to abruptly change business operations, including how they manage their human capital. With work-from-home policies and flexible working arrangements becoming the norm, we anticipate the PEO industry will accommodate these changes in 2021. PEO software will prioritize self-service options that allow employees to record their hours and modify their benefits remotely.
\r\nSmall businesses and PEOs will need to work closely together to modify and administer new employee benefits based on employee needs. Employees are prioritizing benefits like flextime, sick leave and affordable health insurance. PEOs must continue evolving to let employees easily manage the benefits they want.
\r\nAs many companies focus on diversity and inclusion initiatives in 2021, PEOs may increase their virtual education and training programs to help business leaders understand the challenges and best practices for creating an inclusive workplace.
\r\nAlthough legal compliance has always been important, the pandemic has created an even bigger need for this. As PEOs navigate employment and labor laws, they will need to work closely with small businesses to ensure the owners are maintaining a safe and compliant workplace.
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It also has a strong training program that includes onsite and online training on a variety of topics. Engage's HR services are fully integrated and available via desktop, tablet and mobile devices, and its HR consultants double as licensed attorneys.","serviceName":"Engage PEO","pricing":{"isCapped":false,"isFeatured":false,"primary":true,"selected":"widget","widgetId":"10092","widget":{"id":"10092","cta":"Compare Quotes","isExclusive":false},"affiliate":{"cta":"Visit Site","link":"https://www.engagepeo.com/","name":""}},"thumbnail":{"path":"https://staging.business.com/images/rz/5d2508c57b4374a65b8b457a/Engage-PEO.png"}},{"canonical":"https://staging.business.com/reviews/g-a-partners/","id":"70dcd6fd2222e4cb2f144aa81df78bfd","description":"G&A Partners offers comprehensive human resource services, modern payroll technology, competitive employee benefits, workplace safety measures, and risk and compliance management, but its impressive training programs and technology are what make it the PEO we recommend for employee development. 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Many PEO companies we reviewed require you to have a minimum number of employees to use their services, usually 5-10, but XcelHR has flexible acceptance standards. This is advantageous to very small businesses that need HR services or other PEO features, as they may not qualify with many other companies.","serviceName":"XcelHR","pricing":{"isCapped":false,"isFeatured":false,"primary":true,"selected":"widget","widgetId":"10092","widget":{"id":"10092","cta":"Compare Quotes","isExclusive":false},"affiliate":{"cta":"Visit Site","link":"https://www.xcelhr.com/","name":""}},"thumbnail":{"path":"https://staging.business.com/images/rz/5bad001451ee4781048b4569/XcelLOGO.png"}},{"canonical":"https://staging.business.com/reviews/paychex-peo-services/","id":"68c28fc6696da1da21abaf6917c76074","description":"Paychex provides businesses with comprehensive PEO features, including risk management, payroll, employee benefits, HR administration, and numerous onsite and virtual training solutions. This nationwide company represents thousands of employees and businesses of all sizes, so you'll be joining a provider that is equipped to handle your organization. It also assigns you an HR generalist who remains your point person as your business grows and a mobile application so you can access your services on the go. Plans are scalable as your company grows. Paychex is certified by the IRS and accredited by the Employer Services Assurance Corporation (ESAC) and the Better Business Bureau, with an A+ BBB rating. For these reasons, Paychex earns our pick for best PEO service for midsize businesses.","serviceName":"Paychex","pricing":{"isCapped":false,"isFeatured":false,"primary":true,"selected":"widget","widgetId":"10092","widget":{"id":"10092","cta":"Compare Quotes","isExclusive":false},"affiliate":{"cta":"Visit Site","link":"https://www.paychex.com/peo","name":""}},"thumbnail":{"path":"https://staging.business.com/images/rz/5ec814d37b4374496f8b4592/paychex.png"}}]}],"tocElements":[{"title":"Best Picks","id":"top-of-page"},{"title":"Sponsored Content","id":"sponsored-content"},{"title":"Intro","id":"intro"},{"title":"Get a Quote ","id":"get-a-quote"},{"title":"Compare Our Best Picks","id":"compare-our-best-picks"},{"title":"Our Reviews","id":"our-reviews"},{"title":"Pricing and Negotiation","id":"pricing-and-negotiation"},{"title":"Buying Guide","id":"what-is-a-peo"},{"title":"How Do PEOs Work?","id":"how-do-peos-work"},{"title":"What to Expect in 2021","id":"what-to-expect-in-2021"},{"title":"Other Services Considered","id":"other-services-considered"}],"author":{"id":"5e2f111c7b4374b05b8b4573","name":"Skye Schooley","bio":"Skye Schooley is an Arizona native, based in New York City. 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