Professional Employer Organization (PEO)

Our full-service, all-in-one HR solution takes on payroll, benefits, compliance work and more — giving small and midsized businesses the room they need to grow.

Get more from our PEO: Expert HR support, benefits & HR admin, legally backed guidance and talent management.

What can a PEO do for your business?

When you partner with our PEO, you won’t have to worry about time-consuming HR tasks — we’ll take care of those for you.

You’ll get:

Expert HR Support

Enjoy the day-to-day support and ongoing guidance from the certified HR expert assigned to your business.

Reduced Risk

Get the peace of mind that comes with our experts helping keep your business compliant — where you do business.

Stabilized Costs

Confidently plan for the future by partnering with our PEO to take advantage of year-over-year cost stability.

Better Benefits

Provide industry leading benefits to your employees — with 100% of the benefits admin work handled for you.

What is a PEO?

ADP TotalSource®, our professional employer organization (PEO), is a cost-effective, all-in-one HR solution that takes on complicated, time-consuming HR tasks, so you can shift your focus to your business’s most pressing needs.

Here’s just some of what you’ll get with our PEO:

  • Attractive and cost-effective benefits plans, from the most trusted national and regional brands
  • Workers’ compensation coverage and claims management
  • All-in-one payroll and tax support
  • Coverage in all 50 states
  • Legally backed HR advice from your dedicated HRBP (Human Resources Business Partner)
  • Help with hiring and employee retention

Is a PEO right for your business?

  • You’re a small or midsized business with 5 to 1,000+ employees (there is flexibility around those exact numbers).
  • You have an HR team, but need to reduce administrative burden so they can be more strategic with their time.
  • You don’t have HR, and managing all the requirements on your own has become too time-consuming and risky.
  • You need help navigating complex labor laws and regulations to minimize risk and stay compliant.
  • You lack in-house HR expertise and need professional guidance on talent management and employee relations.
  • You want access to competitive benefits packages to attract and retain top talent.
  • You want to be recognized as a great place to work, where people want to join, stay, and make a difference.

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What our PEO clients say

How our PEO works

No time for HR and payroll work? No problem. You can get dedicated, all-in-one payroll, HR and tax support from our PEO, and the freedom to finally focus on what matters most.

With ADP TotalSource, the nation’s largest PEO, we’ll:

  • Take the time to understand the nuances of your business, along with its unique challenges
  • Design an HR plan that works best for you and your employees
  • Consolidate vendors and streamline processes to help your business run more efficiently
  • Become an extension of your team by providing day-to-day support plus ongoing strategic HR guidance

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ADP: Expert guidance, technology, employee support. PEO services for your business, including: HR & compliance, payroll & tax, workers' comp, 401(k), hiring and benefits
Spend 30% less time on HR with our PEO. (from client survey, Dec. 2022)

What you get with our PEO

When you partner with our PEO, you won’t have to worry about the small stuff — we’ll take care of all of that for you. You be able to:

  • Focus on what matters most while we handle your business’s time-consuming administration duties
  • Enjoy invaluable peace of mind knowing that our HR expertise will help keep you compliant
  • Scale at the pace you desire by getting the exact support you need, right when and where you need it

With our PEO’s superior tech, industry-leading employee benefits offerings, and payroll and HR expertise, there’s no limit to what your business can accomplish.

See All Our PEO Features

Meet ADP TotalSource, your all-in-one PEO for everything HR

The HR support you need is finally here: ADP TotalSource. Our flagship PEO solution is designed to integrate seamlessly with small and midsized businesses, providing HR, benefits, compliance, and workers’ comp—all under one umbrella. You even get dedicated support from an HRBP, your go-to HR expert.

The knowledge you need — in your corner

With ADP TotalSource, you won't waste time getting "help" from a chatbot. You'll reap the rewards of having a real-life HR business partner — or HRBP — working directly with you, guiding you through the full range of HR issues.

  • One-on-one guidance when you need it
  • Help with day-to-day tasks like compliance questions, addressing turnover, or tricky employee situations
  • Customized plan for your HR goals and strategy

HR solutions that move with you

Our easy-to-use platform and top-rated mobile app allow you to stay on top of payroll and HR tasks wherever you go. No more worrying about a lack of access — you now have the power to quickly manage people and tasks from anywhere.

  • Employee self-service
  • All-in-one platform
  • 24/7 self-service standard reports and drag and drop custom reports
  • Top-rated ADP mobile app

The confidence to handle anything

ADP TotalSource was built to be your single-stop answer for all things HR. It allows you to efficiently solve any HR issue sent your way — and lets you do it all from the comfort of a single platform.

  • Hiring
  • Benefits
  • Payroll
  • Compliance
  • Risk and safety

Choose a trusted partner

There are significant advantages to partnering with a certified PEO like ADP TotalSource:

  • Certified PEOs meet all the rigorous background, financial and reporting requirements set by the IRS
  • This certification ensures financial protections and tax benefits to TotalSource clients that users of non-certified PEOs do not necessarily receive
  • ADP TotalSource helps ensure your federal employment taxes are paid

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A PEO for a Growing Business

Many growing businesses face HR headaches. Adding employees leads to more HR, payroll and compliance tasks. Offering competitive benefits is becoming increasingly challenging. With the world of work and regulations changing fast, overwhelming is an understatement.

That's why growing businesses partner with ADP's PEO, TotalSource. Our IRS-certified, all-in-one PEO takes care of the people side of your business in a cost-effective way.

Learn more about TotalSource

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The payoff of a PEO

A PEO will help you consolidate services, streamline processes, and reduce some of your risk as an employer — but ADP doesn’t stop there. TotalSource goes above and beyond to look at other critical areas like designing the right benefit strategy, proactive compliance, and addressing employee turnover and productivity. We help you optimize your labor costs by:

  • Highlighting what you should be paying, which plans you should be offering, and why
  • Helping you mitigate your overall risk by being your go-to for compliance
  • Providing you and your team with training and safety advice
  • Helping you understand employee turnover before it becomes costly

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Awards and recognition

 

*The IRS does not endorse any particular certified professional employer organization. For more information on certified professional employer organizations, go to www.irs.gov.

Resources and insights

PEO Benefits Small Business

insight

Benefits of a PEO for small businesses

guidebook

Why Partnering With a PEO Makes Sound Business Sense

guidebook

Take payroll and HR administration off your plate. And reap the rewards.

FAQs

How do I know if my business is ready for ADP’s PEO?

ADP’s PEO solution, ADP TotalSource, is typically an ideal fit for small and midsized businesses (ranging from 5 to 1,000+ employees) that want to reduce Human Resources workload and risk and gain efficiencies and strategic expertise. Your business may be ready for ADP TotalSource if you are experiencing any of the following:

  • Administrative Overload: HR tasks, compliance, and payroll processing are pulling you away from strategic, revenue-generating work.
  • Talent Attraction Challenges: You are losing top candidates because you cannot match the premium benefits packages of larger corporations.
  • Getting the Answer Wrong is too Risky: In HR, what you don’t know can hurt you and your employees. A PEO helps you eliminate that risk by ensuring every decision, filing, and policy is handled by professionals who live and breathe HR.
  • Multi-State Complexity: You operate or have employees in multiple states and are struggling to navigate varying state-specific employment laws and taxes.
  • Rising Benefits Costs: The rise in healthcare premiums has impacted the full package you can offer employees. You’re seeking cost stability and buying power a PEO can provide along with more choice and better options to stay competitive in attracting and retaining employees.

How can small businesses manage rising healthcare costs in 2026?

In 2026, small businesses are facing the highest healthcare cost increases in 15 years. Small group employer-sponsored plans are experiencing renewals as high as 30%, driven by external market pressures, including rising pharmaceutical costs and changes to the Affordable Care Act (ACA). Unlike open market small group plans, a PEO like ADP TotalSource stabilizes these costs by moving small businesses into a large group risk pool. By leveraging its massive scale and buying power, ADP TotalSource secures large-group rates, helping to mitigate severe price fluctuations and provide greater cost predictability than the open market typically allows.

How does partnering with a PEO differ from hiring an in-house HR team?

Think of the PEO as instant infrastructure for your organization. When partnering with ADP’s PEO, ADP TotalSource, a company gains instant access to a full team of experts and specialists across every HR discipline. You could technically hire for that in-house, but it would come at a higher price. In addition to the team, the PEO also comes with best-in-class technology, proven processes and workflows, compliance monitoring, employee benefit plan design, payroll processing and tax filing, data security, and much more. With the PEO, the people, processes, and technology that becomes that instant infrastructure, personalized for your business. Some examples of how a PEO works with your in-house resources:

  • Enterprise-Level Resources: You gain access to Fortune 500-level employee benefits, automated payroll processing, and advanced compliance systems.
  • Dedicated Expertise: You are paired with a dedicated ADP HR Business Partner (HRBP), who serves as your main point of contact and provides daily support and strategic guidance personalized for your business
  • Strategic Freedom: Our PEO serves as a strategic advisor to your team and takes on the administrative workload, allowing your internal HR team to prioritize culture, employee experience, and strategic initiatives.

Will my employees notice a difference when we partner with a PEO?

Yes, your employees will likely notice a positive upgrade in their overall experience. While you continue to manage day‑to-day responsibilities like hiring, scheduling, and setting pay, ADP TotalSource works with you to help elevate the employee experience through:

  • Better Benefits: Employees gain access to high-quality health insurance, retirement plans, and exclusive corporate perks.
  • User-Friendly Technology: Employees can easily access pay stubs, manage benefits, and request time off through the top-rated ADP mobile app and self-service portals.
  • Faster Support: Employees get quick, accurate answers to their HR and benefits questions through our dedicated and award winning MyLife Advisors.
  • Improved Onboarding Experience: New hires experience a smoother, more professional onboarding process with digital paperwork, automated workflows, and clear guidance from day one.

Can a PEO support my business compliance across multiple states?

Yes, ADP TotalSource provides comprehensive HR, payroll, and tax compliance support across all 50 U.S. states. This is critical for businesses that operate in or employ people in multiple states. Our compliance experts help you manage:

  • State-Specific Labor Laws: We proactively monitor and help you adapt to changing local, state, and federal employment regulations.
  • Payroll Tax Filings: ADP handles multi-state employment tax calculations on your behalf.
  • Risk and Safety: We provide workers' compensation insurance coverage and claims management regardless of where your employees reside.

What should I look for when comparing PEO providers?

When selecting a Professional Employer Organization, evaluate the provider's financial stability, credentials, longevity, compliance expertise, service model, and technology. Key factors to consider include:

  • IRS Certification and ESAC Accreditation: A certified PEO (CPEO) has met rigorous IRS financial and reporting requirements, providing clients with specific tax benefits and financial protections. An ESAC-accredited PEO is the gold standard for PEO reliability and financial assurance. ADP TotalSource is an IRS-certified and ESAC-Accredited PEO.
  • Dedicated HR Support: Service models vary widely. Some PEOs rely on general call centers, while others provide dedicated specialists. ADP TotalSource assigns each client a credentialed HR Business Partner (HRBP) for ongoing strategic support.
  • Comprehensive Benefits Offering: Evaluate the breadth and quality of the benefits package, including healthcare, retirement plans, and ancillary benefits for the states where you have employees. A strong PEO should provide access to competitive benefits with expert guidance on plan selection and administration. It should also offer you multiple plan choices in each state.
  • Scalable Technology: Look for an intuitive platform that integrates HR, payroll, benefits, and time tracking in one system. ADP TotalSource provides an all-in-one platform with employee self-service and a top-rated mobile app.
  • Multi-State Coverage: If you have or plan to hire remote employees, confirm the PEO provides compliance and full benefits support in all states where you operate. ADP TotalSource offers full coverage across all 50 U.S. states.

Is ADP TotalSource a certified PEO?

Yes, ADP TotalSource has met all the rigorous background, financial and reporting requirements set by the IRS. This certification ensures financial protection and tax benefits to TotalSource clients that users of non-certified PEOs do not necessarily receive. ADP TotalSource helps ensure your federal employment taxes are paid.

What kind of qualifications or certifications does my HRBP have?

ADP's HRBPs are credentialed HR professionals with extensive experience, plus at least one highly relevant certification in Human Resources management, such as:

  • Professional in Human Resources (PHR)
  • Senior Professional in Human Resources (SPHR)
  • Society for Human Resource Management Certified Professional (SHRM-CP)
  • Society for Human Resource Management Senior Certified Professional (SHRM-SCP)
  • Master of Human Resource Management (MHRM)
  • Certified Human Resource Specialist (CHRS)

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