7 Best PEO Companies Best & Worst in 2024

Focusing on industry-specific needs helps your business streamline operations and reduce administrative burdens. You’ll get support for payroll, benefits, and ‌HR administration, which makes them a strong choice for remote-first companies. As a result, PEOs are geared towards smaller businesses that need comprehensive HR assistance, and HROs are better for larger organizations or businesses that only need to outsource one (or many) HR services. The most significant difference between a PEO and an HR outsourcing (HRO) service is that a PEO operates under a co-employment relationship, and an HRO does not.

However, this is “penny wise and pound foolish” as this will cost them more in the long run. Also, employees who can’t develop their skills within the company would be more than 12 times likely to leave. Deciding whether a PEO or an EoR best fits your workforce is usually going to simply depend on whether you are hiring offshore or not.

What’s the difference between a PEO company and a staffing agency?

One of the biggest benefits of partnering with a PEO company is access to HR professionals that can answer questions and help you navigate different situations as they arise. Furthermore, it’s important to understand if you can add new services as your business grows or remove services if you decide to hire someone on to handle HR tasks in-house. Some providers require you to sign for a year or more in advance, with hefty cancellation fees if you need to make changes to your plan.

• Book a free consultation call to find the best approach for scaling your team efficiently, affordably, and with full compliance.
• Similar to Paychex, small businesses will need to contact an ADP sales representative for a custom price quote.
• Paychex originally started as a payroll software, so it’s no surprise that it provides strong payroll and HR support to small- and mid-size businesses.
• We narrowed those choices for you, evaluating them on important criteria like cost, features, customer service and platform user-friendliness.
• Some even offer health savings accounts, flexible spending accounts and health reimbursement arrangements.

What are PEO Services for Small Businesses?

Below, I’ve summarized the most recent release notes and product updates for my top PEO company recommendations. Discover what’s now possible through new service improvements, new PEO software features, and other company updates, and why it matters for PEO offerings. Remember every business is different — don’t assume that a PEO company will work for your organization just because it’s popular. If you’re really having a difficult time figuring out the best fit for your needs, you could also enlist the help of a PEO broker to help you analyze all the options in detail. Partnering with a PEO company can help you outsource your core HR functions so you can focus on more strategic HR operations. To help you figure out which PEO service best fits your needs, you need to document your specific challenges first.

Introduction to PEO Services for Small Businesses

• PEOs are usually well versed in the laws and regulations that your company has to follow, so they can help you manage risk and legal compliance for your business.
• If you’re interested in enterprise-grade employee benefits without the enterprise-grade price tag, a dedicated benefits specialist will walk through the entire process with you.
• From employee benefits and payroll administration to taxes and compliance with dynamic HR regulations, you have a lot to think about.
• With business.com+, members get dedicated support, exclusive deals and expert advice.
• A professional employer organization (PEO) is a co-employer of a person and becomes liable for tax implications, HR, payroll, and benefits.

Engage PEO offers HR consulting services from licensed attorneys who have expertise in employment law and HR compliance, so you’ll receive expert guidance to help navigate complex workplace regulations. The company claims to combine access to a range of benefit packages from national brands with the personal attention of a boutique operation. Confirming Engage PEO’s commitment to compliance is its credentials as an IRS Certified PEO (CPEO) and its ESAC certification, which confirms its experience and financial stability. Features of Engage PEO include payroll and tax administration, full HR services, compliance training, benefits strategy and administration, plus workers’ comp through AIG and OSHA safety resources.

Reputation and Customer Reviews

They are known for their expertise in compliance and their ability to help businesses navigate complex regulatory environments. This PEO service company is known for its modern PEO services for startups & high-growth companies. Insperity is a leading provider of human resources and business performance solutions that is founded in 1986. It offers a comprehensive range of PEO services and solutions designed to support businesses of all sizes and industries.

Contracts outline the scope of services, fees, responsibilities of both parties, and termination clauses. A key update is the W-2 Integration & Tax Prep Software Service, which allows employees to access H&R Block or TurboTax directly through the My Perks hub at no cost to employers. The new time tracking dashboard accurately monitors employee time off and eliminates duplicate data, ensuring reliable workforce information and reducing the need for manual corrections. Plus, onboarding has been simplified with a new layout and checklists you can adjust for best peo for small business contractor hires.

Reviewing these factors helps determine whether a PEO supports your current operations and long-term strategy. In fact, over 200,000 U.S. companies across all industries use a PEO, allowing them to focus on their core operations. It’s essential for your business to find a PEO that aligns with your goals and company culture in a straightforward, harmonious way. Landrum HR Solutions stands out as the top Professional Employer Organization (PEO) choice for SMBs due to our comprehensive approach to shared employer relationships. On the surface, it may seem like a PEO company is similar to a staffing agency, however, their business models are quite different.

Professional Employer Organizations (PEOs) have emerged as a vital resource for small businesses seeking comprehensive human resources solutions without the burden of extensive in‐house administration. In 2025, PEO services streamline HR, payroll, benefits administration, and risk management so that business owners can focus on growth. By partnering with a PEO, small companies gain access to expertise that would be costly to develop internally. If you’re looking for the best PEO in Minnesota, choosing a provider with strong compliance support and enhanced employee benefits is essential. This guide explains what a PEO is, its benefits, and why it is a critical resource for today’s small businesses. TriNet is an esteemed professional employer organization (PEO) that is founded in 1988 specializing in delivering comprehensive HR solutions specifically designed for small and medium-sized businesses (SMBs).

While these services may be similar to the PEO model, they do not have co-employment agreements. Small and mid-sized businesses looking for comprehensive HR, admin, and risk mitigation support, along with a wide range of customizable benefits options. Startups and small, fast-growing businesses that are seeking to outsource their HR, compliance, and payroll functions, especially those managing distributed or hybrid teams.

How Do You Implement a PEO Service?

Paychex simplifies HR, payroll, and employee benefits, making it a top choice for self-employed individuals who are adding their first employees. It’s one of the few PEOs that work with fewer than five employees, which is ideal for small businesses and startups. Paychex offers Fortune 500-level benefits like medical, dental, vision, 401(k) plans, and employee discounts.

In the buying process, he put an emphasis on taking care of employee benefits, payroll and compliance. PEOs typically do not offer free trials of their HR services, and contract lengths and structures vary by company. Some PEOs only offer long-term contracts, while others don’t require a contract at all. Cancellation policies also vary, but business owners typically need to provide at least 30 to 60 days’ notice before terminating their PEO service. Some companies allow you to leave at any time for any reason; others charge you a fee for leaving.