Is a PEO the same as a payroll company?

A payroll provider is a vendor: it calculates wages, files returns in your name and hands the results back. You remain the sole employer and your benefits are whatever you buy on your own.

A PEO enters a co-employment relationship. It reports wages under its own employer identification number, takes on defined employment responsibilities and offers benefits through its much larger pool. That structure is the point — and the reason the agreement, the fees and the exit terms deserve proper reading.

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