How much does a PEO cost?

Percentage-of-payroll pricing scales with wages, which suits businesses with modest salaries and hurts those with senior staff. Per-employee pricing is predictable and often better for higher-paid teams. Both usually sit on top of the actual cost of benefits and employment taxes, so read what is bundled and what is billed through.

The comparison that matters is total cost: your current payroll service, HR time, workers' compensation, and what you pay for benefits today, against the PEO's all-in figure. Plenty of PEO proposals look expensive until the hours an owner spends on compliance are priced honestly — and plenty look cheap until the benefit menu is compared like for like.

An estimate for planning, not a quote. Medicare and the Marketplace set your real figures.