PEO Comparison Guide
PEO Cost Comparison

PEO Cost Comparison

Compare the True All-In Cost of Every PEO

PEO cost is more than the monthly fee. The true cost includes the per-employee charge, workers comp markups, benefits administration fees, and hidden add-ons. Our PEO cost comparison lays out every cost line so you see what you actually pay and what you actually save with each provider.

2–6%

Of payroll typical PEO fee

$40–160

Per employee per month

15–30%

Hidden markup range on workers comp

$0

Cost for a cost comparison

What We Compare

Key Comparison Factors

Base Administration Fee

The headline fee, either a percentage of payroll or a flat per-employee charge. This is what most PEOs quote first, but it is only part of the cost.

Workers Comp Markup

Some PEOs mark up workers comp premiums 15 to 30 percent. This hidden cost can exceed the base fee. We compare the true workers comp cost.

Benefits Administration

Some PEOs bundle benefits admin into the fee; others charge separately. We compare what is included and what costs extra.

Setup & Onboarding Fees

Some PEOs charge a one-time setup fee. We compare setup costs and negotiate them down or away where possible.

Per-Employee Add-Ons

Some PEOs charge extra for benefits enrollment, HR support, or technology. We itemize every add-on so there are no surprises.

Hidden Costs

Early termination fees, minimum monthly charges, and rate increases at renewal. We surface every hidden cost before you sign.

True Cost vs. Headline Fee

PEO Cost Is More Than the Monthly Fee

When a PEO quotes a per-employee fee, that number rarely tells the full story. The true cost includes the base admin fee, workers comp markup, benefits administration, setup fees, and per-employee add-ons. Two PEOs with the same headline fee can have very different true costs. Our PEO cost comparison itemizes every line so you compare true cost, not marketing numbers.

  • Base administration fee (percentage of payroll or per-employee)
  • Workers comp premium and any markup
  • Benefits administration fee (bundled or separate)
  • Setup and onboarding fees
  • Technology and HRIS fees
  • Early termination and minimum monthly charges
How to Compare

How to Compare PEO Costs Apples to Apples

To compare PEO costs fairly, request a total cost of employment (TCE) figure from each provider. TCE includes the admin fee, workers comp, benefits, and all add-ons. If a PEO will not provide a TCE, that is a red flag. We build a side-by-side TCE comparison across multiple PEOs so you see the true cost of each option.

Where Savings Come From

Where PEO Cost Savings Actually Come From

PEO savings come from three places: lower health insurance premiums through large-group pooling, lower workers comp rates through risk pooling, and avoided HR and payroll admin costs. The best PEO cost comparison shows not just what you pay but what you save against your current baseline. If the savings do not exceed the fee, the PEO is not the right choice.

FAQ

PEO Cost Comparison FAQ

How much does a PEO cost?

A PEO typically costs 2 to 6 percent of gross payroll, or $40 to $160 per employee per month. The true cost includes the base fee plus workers comp, benefits admin, and any add-ons. We provide a total cost of employment comparison so you see the full picture.

What is the total cost of employment for a PEO?

Total cost of employment (TCE) includes the PEO admin fee, workers comp premiums and markups, benefits administration, setup fees, and any per-employee add-ons. TCE is the true cost of the PEO. We build a TCE comparison across multiple PEOs so you compare real costs, not headline fees.

Are there hidden costs with a PEO?

Some PEOs include hidden costs like workers comp markups, separate benefits admin fees, setup charges, minimum monthly fees, and early termination penalties. We surface every cost line before you sign so there are no surprises.

How do I compare PEO costs?

Request a total cost of employment figure from each PEO that includes the admin fee, workers comp, benefits, and all add-ons. Lay them out side by side. An independent broker builds this comparison for you at no cost. If a PEO will not provide full cost transparency, that is a red flag.
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