Advertiser Disclosure

💳 Save money on credit card processing with one of our top 5 picks for 2022

The Best PEO Companies For Businesses

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

    Matt Sherman

  • UPDATED

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

If you have a small business, you may have looked into a Professional Employee Organization (PEO) to handle some of your administrative needs. What is a PEO for small businesses? The best PEO companies around can take some troublesome HR tasks (such as benefits management, recruiting, and payroll) off your plate.

PEOs may specialize in certain tasks or have an industry-specific focus. But they’re not for everyone. Generally, they are equipped to take on small business functions, such as worker’s compensation, unemployment administration, employee onboarding and training, and legal compliance.

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

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
Paychex

Read More

  • Most customizable PEO
  • Custom pricing
  • Good fit for small businesses
  • Most customizable PEO
  • Custom pricing
  • Good fit for small businesses

Visit Site

Read More
ADP Payroll

Read More

  • Most feature-rich PEO
  • Custom pricing
  • Advanced features & ample integrations
  • Most feature-rich PEO
  • Custom pricing
  • Advanced features & ample integrations

Get A Quote

Read More
Justworks

Read More

  • Most scalable PEO for businesses
  • Starts at $49-$99/employee
  • Large selection of benefits
  • Most scalable PEO for businesses
  • Starts at $49-$99/employee
  • Large selection of benefits

Visit Site

Read More
TriNet

Read More

  • Best PEO for industry-specific expertise
  • Custom pricing
  • Expert customer support
  • Best PEO for industry-specific expertise
  • Custom pricing
  • Expert customer support

Visit Site

Read More
Rippling

Read More

  • Best PEO for remote employee management
  • Custom pricing
  • Includes strong HR & multi-state employee support
  • Best PEO for remote employee management
  • Custom pricing
  • Includes strong HR & multi-state employee support

Visit Site

Read More
Show More Options
CoAdvantage

Read More

  • Best PEO for analytics
  • Custom pricing
  • Includes HR, benefits, & job costing
  • Best PEO for analytics
  • Custom pricing
  • Includes HR, benefits, & job costing

Visit Site

Read More
Show Fewer Options

Read more below to learn why we chose these options.

The 6 Best PEO Companies For Small Businesses

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

1. Paychex: Best PEO For Customization

Paychex

Visit Site

Read our Review

Payroll Processing Time

Two days (faster costs extra)

Pricing

Starts at $39/month + $5/employee

Business Size

Self-employed contractors to enterprises with 1,000+ employees

Pros

  • Excellent customer support
  • Varied employee benefits
  • Tailored plans for small businesses

Cons

  • Non-transparent pricing
  • Five-employee minimum
  • Add-on features can get pricy

paychex dashboard

Why We Chose Paychex For Best PEO

Paychex has built a reputation as a small business payroll provider. Paychex delivers an all-in-one payroll and HR platform for small businesses through its PEO services. On the customer end, the Paychex Flex software is relatively easy to use and has 24/7 customer support to help with setup and ongoing use. Paychex offers an extensive selection of employee benefits.

Paychex is counted among the best PEO companies for tailoring its features and services to a business's unique needs. Customers benefit from working directly with a designated HR professional to develop a customized plan. Businesses looking for a customizable and more personal approach should give Paychex a try.

Paychex Pricing

(Prices in the table above reflect Paychex’s payroll services.) Although Paychex PEO pricing is not disclosed outright on its website, the company claims to calculate rates per employee. Reviews indicate that small business customers were quoted a flat rate per employee that’s charged each pay period. The type of features included in a PEO plan will also impact Paychex’s cost.

Paychex periodically offers free trials and other promotions, giving businesses a chance to give its PEO services a test run.

Paychex Features

In addition to payroll processing, Paychex customers can incorporate recruiting, learning management systems, risk management, time and attendance tracking, and employee performance management into a PEO package. Some of its top features include:

  • Group and individual health insurance
  • 401(k) and retirement services
  • Health benefit accounts
  • Dental and vision insurance
  • Tax-saving plans

Get Started With Paychex

Read our in-depth review

Jump back to comparison chart

2. ADP TotalSource: Best For Deep Feature Set

ADP Payroll

Get A Quote

Read our Review

Payroll Processing Time

Variable

Pricing

Custom

Business Size

Small to enterprise-sized businesses (1-1,000+ users)

Pros

  • Specialized HR consultants
  • Robust features and integrations
  • Available in more than 180 countries
  • User-friendly mobile app

Cons

  • Five-employee minimum
  • Pricing not transparent
  • Not cheap for small businesses

adp totalsource peo dashboard

Why We Chose ADP TotalSource For Best PEO

ADP is one of the biggest players in the workforce and HR management industry, with over two million small business employees supported by its services. This scale gives small businesses greater access to features, resources, and services. For starters, ADP TotalSource boasts Fortune 500-level healthcare plans and full-service payroll.

ADP also has a wide range of specialized benefits that small businesses can offer their employees, such as telehealth services, commuter benefits, and discounts on travel, retail, and entertainment.

Switching to a PEO provider will require some adjustments for you and your employees. Fortunately, customer service is another reason ADP ranks as one of the best PEO companies for small businesses.

ADP TotalSource Pricing

Similar to Paychex, small businesses will need to contact an ADP sales representative for a custom price quote. ADP TotalSource cost is determined by location, number of employees, and selected features.

ADP TotalSource Features

With ADP’s extensive knowledge of payroll, it offers an incredibly deep set of features with its PEO services as well. ADP TotalSource claims that it provides Fortune 500-caliber benefits. It also does a very good job specializing its plans to fit your unique business. Here are some of its best features:

  • Competitive 401(k) plans
  • Experts in regulations and compliance
  • Career development feedback
  • Cost-effective insurance options
  • Commuter benefits

Get Started With ADP Payroll

Read our in-depth review

Jump back to comparison chart

3. Justworks: Most Scalable PEO For Businesses

Justworks

Visit Site

Payroll Processing Time

4 days

Pricing

Starts at $49/month

Business Size

Small-medium (25-175 users)

Pros

  • Transparent pricing
  • User-friendly interface
  • Excellent benefit packages and add-ons

Cons

  • Limited reporting
  • No mobile app

justworks dashboard

Why We Chose Justworks For Best PEO

Since launching in 2012, Justworks has emerged as the fastest-growing PEO for small businesses. Justworks provides full-service benefits administration, payroll processing, HR, and compliance support within its two PEO plans: Basic and Plus.

Small businesses that opt for the Plus Plan can access Justworks' full suite of corporate-level employee benefits. These include health insurance plans from Aetna, Kaiser, and United; dental and vision insurance; HSA and FSA accounts; and wellness perks.

Justworks can also assist with COBRA administration. Another noteworthy feature is Justworks' time and attendance program, Justworks Hours, which integrates across the platform to automate payroll and other HR tasks.

Justworks Pricing

Basic Plan

  • <25 Employees: $49 per employee
  • 25-99 Employees: $44 per employee
  • 100-174 Employees: $39 per employee
  • 175+ Employees: Contact Justworks for a quote

Plus Plan

  • <25 Employees: $99 per employee
  • 25-99 Employees: $89 per employee
  • 100-174 Employees: $79 per employee
  • 175+ Employees: Contact Justworks for a quote

JustWorks Features

JustWorks is a solid fit for businesses of all shapes and sizes, giving your employees the benefits that fit your budget and their needs. It offers a full suite of health insurance options along with 24/7 customer support. Here are some of its other best features:

  • COBRA administration
  • Payroll for salaried and hourly employees
  • Vendor payments
  • Liability insurance
  • Online employee onboarding
  • Accounting integrations

Get Started With Justworks

Jump back to comparison chart

4. TriNet: Best PEO For Industry-Specific Expertise

TriNet

Visit Site

Payroll Processing Time

Variable

Pricing

Quote-based

Business Size

Small to mid-sized businesses (5-1,000+ users)

Pros

  • Dedicated team of experts
  • Numerous employee benefits options
  • Strong payroll features

Cons

  • Five-employee minimum
  • Unclear security measures

TriNet employee management dashboard

Why We Chose TriNet For Best PEO

TriNet delivers full-service payroll processing, HR, benefits administration, compliance support, and risk mitigation services to small and mid-size businesses. Tailoring services and assistance to different industry sectors is where TriNet stands out among the best PEOs. Depending on a small business's needs and sector, TriNet provides a personal team of consultants with relevant experience and expertise.

TriNet offers specific services to a wide range of specific industries. The chances are high that its umbrella would cover your small business. If you've had a difficult time looking for niche HR or payroll services specific to your industry, you may want to give TriNet a try.

TriNet Pricing

TriNet’s pricing structure is based on the number of employees, industry, and chosen services. Interested small businesses will have to request a personalized quote. TriNet will break down the monthly rate into line items so that business owners know what they’re paying for and how to craft a plan that works for their budget.

With TriNet, small businesses can step back from benefits administration and choose from a range of plans for their employees. These include health insurance, auto insurance, home insurance, commuter benefits, and marketplace discounts on national brands, such as Verizon, AT&T, Hyatt, and Restaurant.com.

TriNet Features

Beyond the services mentioned above, some of TriNet’s other features include:

  • Worker’s compensation
  • Talent retention
  • ACA solutions
  • Workforce analytics
  • Compensation benchmarking
  • Document management

Get Started With TriNet

Jump back to comparison chart

5. Rippling PEO: Best For Remote Employee Management

Rippling

Visit Site

Read our Review

Payroll Processing Time

2 Days

Pricing

Starting at $8/month per employee

Business Size

Small to enterprise-sized businesses with 2-2,000+ users

Pros

  • Deep integration options
  • Easy-to-use interface
  • Multistate employee management

Cons

  • Lacks IRS and ESAC accreditation
  • Phone support is an add-on

rippling peo dashboard

Why We Chose Rippling For Best PEO

Rippling PEO covers the bases in terms of payroll, benefits administration, compliance support, and risk management. Each solution is organized in its own module that can be accessed from the main Rippling interface. Other business software can be integrated here as well. Rippling offers more than 400 integrations, including applications related to collaboration, customer support, design, finances, HR, marketing, and sales.

As remote work becomes increasingly common, small businesses will have to manage employees and technology in dispersed locations. In terms of tech, Rippling PEO provides remote device management for employees via an auto-installing app. This allows small business owners and the PEO team to make changes to any employee's laptop from the Rippling platform. Businesses with employees in multiple states can receive assistance with local tax registration and meeting minimum wage levels across locations.

Rippling PEO Pricing

Rippling PEO pricing is not entirely transparent. Plans start at a monthly rate of $8 per employee. Costs will increase as additional services are tacked on.

Rippling PEO Features

Rippling prides itself on its breadth of integrations, but it has a strong overall feature set. It also allows you to add just the features you wish to use, making it ideal for rapidly growing businesses. Here are some of its best features:

  • Time and attendance
  • Talent management
  • Learning management
  • Simple app
  • Health insurance options

Get Started With Rippling

Read our in-depth review

Jump back to comparison chart

6. CoAdvantage 360: Best For Analytics

CoAdvantage

Visit Site

Pros

  • Solid reporting and analytics
  • Recruiting and employee screening support
  • Strong payroll features

Cons

  • Pricing not transparent
  • Lacks industry specialists
  • Fewer benefit options than other companies

coadvantage 360 dashboard

Why We Chose CoAdvantage For Best PEO

CoAdvantage 360 is a comprehensive PEO with a knack for payroll, benefits administration, risk and compliance support, and HR services. Growing businesses can use employee recruitment services to find the best candidates. CoAdvantage's recruiting team can help tailor job descriptions, post jobs to appropriate recruitment websites, schedule interviews, and conduct pre-employment assessments.

The CoAdQuantum online portal allows businesses to manage HR duties, such as PTO tracking and employee training. Additionally, the portal lets users generate over 70 types of reports and analyze various metrics in real time. This is a major asset for business owners looking to maximize productivity to further growth. And CoAdvantage's compensation management tools make it easy to reward high-performing employees with bonuses and merit pay.

CoAdvantage 360 Pricing

CoAdvantage 360 does not have set plans or pricing. Instead, businesses can request a custom quote.

CoAdvantage 360 Features

CoAdvantage 360 covers all of the bases with its features set and a comprehensive reporting package. Along with a wide variety of health insurance providers and strong all-around HR services, here are some of its tops features:

  • Employee assistance program
  • Employee deductions
  • PTO accrual tracking
  • Detailed job costing
  • Employee handouts
  • Performance management

Get Started With CoAdvantage

Jump back to comparison chart

Why We Don't Recommend These Options

There are hundreds of PEOs to choose from. And while there are many reputable companies, they don’t all excel in a specific area like our top seven PEOs. The following PEO company didn’t quite make the cut.

Amplify PEO: Slightly Thinner Feature Set

Amplify PEO offers the standard features needed for HR and workforce management. However, Amplify does not stand out for a specific type of business or facet of HR services. Amplify’s website does not convey much detail about its services compared to the best PEOs on this list.

For instance, Amplify highlights third-party integrations but does not identify any applicable apps. It’s worth noting that Amplify claims to have saved companies $1,185 annually per employee on average. This is encouraging for receiving a return on investment, but businesses that meet other criteria outlined above (industry-specific needs, growing businesses, etc.) will likely benefit from another PEO company.

Our Methodology For Choosing The Best PEO Companies For Small Businesses

We looked at and compared dozens of PEO companies in our research for this list. Some of the most important factors were how transparent the company is with its pricing and how easy it is to get a quote, along with its feature and benefit offerings.

A good PEO company for a small business should provide a varied list of benefit options and have access to trained professionals in a variety of fields. Things like a strong mobile app and a simple interface were also big pluses when it came to narrowing down our list.

Which PEO Company Is Right For Your Business?

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

Small businesses dedicate about 17% of their working hours to administrative tasks. Outsourcing payroll, benefits administration, and other HR duties to a PEO can save precious time and money that could be better spent running and growing your business.

PEO FAQs

What is a PEO?

A professional employment organization (PEO) provides administrative, financial, and HR services for small and mid-size businesses. PEOs may specialize in certain areas or industries. They help small businesses take on essential functions, such as benefits administration, payroll processing, employee onboarding and training, and legal compliance.

What is the best PEO?

The best PEO for your business will depend on your unique needs and budget. In certain situations, ADP, Paychex, Rippling, CoAdvantage, Trinet, Justworks, and Oasis Outsourcing would be the best PEO for small businesses.

Do only large companies use PEOs?

Businesses of all sizes can use PEOs for HR and workforce services. However, businesses with fewer than five employees won’t have as many options for cost-effective PEOs.

How much do PEOs cost?

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

How does hiring a PEO work?

When hiring a PEO, small businesses enter a co-employment agreement. This structure allows the small business customer and PEO to share legal and tax responsibilities.

In Summary: The 6 Best PEO Companies For Small Businesses

  1. Paychex:
    • Most customizable PEO
    • Custom pricing
    • Good fit for small businesses
  2. ADP Payroll:
    • Most feature-rich PEO
    • Custom pricing
    • Advanced features & ample integrations
  3. Justworks:
    • Most scalable PEO for businesses
    • Starts at $49-$99/employee
    • Large selection of benefits
  4. TriNet:
    • Best PEO for industry-specific expertise
    • Custom pricing
    • Expert customer support
  5. Rippling:
    • Best PEO for remote employee management
    • Custom pricing
    • Includes strong HR & multi-state employee support
  6. CoAdvantage :
    • Best PEO for analytics
    • Custom pricing
    • Includes HR, benefits, & job costing
Matt Sherman

Matt Sherman

Lead Staff Writer at Merchant Maverick
Matt has been helping small businesses make decisions since 2017. He has written reviews and articles across many different channels but specializes in the point of sale, payroll, and small business insurance categories and has been quoted in articles for Fox Business, Forbes, and other publications. Prior to joining Merchant Maverick, Matt was a journalist and editor for 14 years for a pair of weekly newspapers. He is a graduate of the University of Oregon and currently resides in Gladstone, Oregon.
Matt Sherman
View Matt Sherman's professional experience on LinkedIn.
Show more
Show less