What is the cost of a PEO?

PEO fees can differ, but they typically charge based on the number of employees you have, and which services you are using, so be sure to get quotes for comparable services. Industry experts estimate average PEO costs at between 2-12% of wages.1 When you think about your total cost for administering HR yourself, however, including revenue lost from the time it takes away from your business, it can be a worthwhile expenditure. A PEO can save your company up to 35% on HR costs, compared to what you would spend if you did not use a PEO to outsource payroll and HR.2

1 Source: PEO Pricing Guide, PEOcompare.com, 2018
2 Source: “The State of the PEO Industry 2016: Markets, Value, and Trends,” NAPEO, 2016

Figure 6 HR Admin

Tags: Small Business Payroll HR Services Benefits Administration HR Outsourcing PEO Co-Employment HR Admin & Outsourcing Payroll Administration Compensation & Benefits ADP TotalSource® PEO