Top 10 Best
Professional Employer Organizations
Discover the Top 10 PEOs to Streamline HR, Benefits, Payroll, and Compliance.
So, maybe you've learned a little bit about PEOs...
...and have decided using one might be a good choice for your company. In terms of saving money on benefits as well as implementing a versatile HR infrastructure that doesn't involve a steep investment in an HR Department or more overtime from you, it's a smart decision.
But there are hundreds of PEOs – and you don't have endless hours to research them all.
So, where's the list? Unfortunately, doing a "Top 10 Best PEOs" could be misleading — PEOs can be as unique as their clients, some in startups and small businesses, some international organizations spanning the world. There's no one-size-fits-all.
For us, the best way to highlight PEOs is to divide them by the size of their clientele — international, national, regional, and niche. All ten of these PEOs provide a good core service of HR infrastructure and solid benefits, but one may be better depending on your company's size or business style. And if one sounds like a good match?
Let us know — we'll gladly negotiate better rates than you'll get on the open market.
Best International PEO
Each country has its brand of red tape. Providing benefits and HR services magnifies those difficulties exponentially — but international PEOs specialize in cutting the complexity and giving you one go-to partner across continents.
Atlas
Year founded: 2012
Health carrier: BUPA /Blue Cross Blue Shield
Best known for solid global coverage across nearly every country in the world.
Atlas is an excellent partner for any company in the middle of international expansion and wanting to stay ahead of the ever-changing legal landscapes of individual countries. Named the 28th fastest-growing US business in 2018 by the INC 500, Atlas offers a full-sized service while offering the responsibility of a younger company. Their energetic approach guarantees the resources you need when doing business abroad, from legal teams to HR managers and benefits administrators to the benefits themselves. All are tailored for whichever of their 135 covered countries you find yourself in.
Top National PEOs
In the US, national PEOs provide solid HR services and benefits across US states' widely varying political landscapes. The ones we've selected have excellent reputations for interacting well with the most "worker-friendly" states, giving you legal compliance while delivering efficient and affordable HR services, all from one easy-to-work-with resource. If only Congress could do that.
Year founded: 1949
Health carriers: Aetna, BCBS, UHC, and Kaiser
Best known for more than six decades of HR experience.
Mostly known now for its payroll software, ADP has also developed a robust PEO that services large, national clients. Integrating decades of payroll and HR experience into a one-stop PEO solution, ADPTS is a publicly traded firm that provides consistently good service and prices made possible by its size. ADP offers Aetna, BCBS, UHC, and Kaiser national medical plans.
Year founded: 1988
Health carriers: Aetna, BCBS, UHC, and Kaiser
Top pick for those looking for a PEO partner that potential employees/investors will have heard about and trust.
If there's one PEO you've heard of, it'll probably be TriNet. Publicly traded and one of the first organizations to bring the practice of using PEOs into the public spotlight, TriNet also offers a solid, well-rounded experience that gives employers a single access point for all their HR needs. Their widespread usage means familiarity with just about every industry. TriNet offers national plans from Aetna, BCBS, UHC, and Kaiser.
Year founded: 1986
Health carrier: UHC and Kaiser
Top choice for a straightforward solution that gets the job done without unnecessary frills.
Insperity is publicly traded and has been a pioneer in the PEO industry. Their clients range from white to blue-collar companies, and they offer national plans from UHC and Kaiser. With great software and service to match - Insperity is a great choice for a quality PEO. Insperity offers national health plans from UHC and Kaiser.
Year founded: 2012
Health carriers: Aetna, UHC, and Kaiser
Best known for its modern platform, intuitive software, and pricing.
As its more modern name would suggest, Justworks is a fresh newcomer to the field, but don't let their age fool you. In addition to the expected services and benefits programs, Justworks offers a versatile proprietary software solution for managing employees and HR details that is refreshing and modern.
Thanks to their software, their approach to HR is a bit more hands-off than other full-service PEOs, but the savings and increased control are preferable for some entrepreneurs. And they'll gladly step in and provide support if you need it. Justworks offers national medical plans from Aetna, UHC, and Kaiser.
Top Regional PEOs
If your company operates only in a small area (from multi-county to multi-state), you might not need to pay for all the brawn of a national PEO. Choosing a PEO with a more local focus will not only save you money but also help you have an HR partner who can focus locally, just like you.
Year founded: 1995
Health carrier: Cigna, UHC, and BCBS
Top choice for companies who value service and want the benefits of a large PEO without the cost.
G&A has built a culture that prioritizes people. Just as they value and care for their own team, G&A extends that same care to you and your employees.
G&A’s commitment to accountability, reliability, deep and evolving expertise, and open, honest communication allows them to provide you with best-in-class service, a robust HR infrastructure, and the ability to scale our services as your business grows.
Year founded: 1997
Health carrier: Aetna and BCBS
Best known for being among the first PEOs to help out
small businesses specifically.
Founded by a small business owner after he grew frustrated by how difficult it was for non-heavyweights to get quality HR and benefits, Extensis has grown into a national group with plenty of resources.
Despite their success, they've never forgotten their roots. Clients enjoy personalized service invested in their unique situation while accessing a "Fortune 500" level of benefits and resources. Extensis offers national medical plans from Aetna and BCBS.
Top Niche PEOs
For us, niche companies are firms with small teams with highly specialized employees. This includes architectural, consulting, financial and law firms, but more recently applies to startups.
Niche companies require specialized PEOs to deliver the most value for their smaller teams, accommodate unique needs, and make any growth plans pain-free and effortless. And getting top talent is easier to find when your firm is offering the benefits used by Fortune 500 companies to scoop up valuable employees. Here are a few of the Niche PEOs we work with.
Year founded: 1997
Health carrier: Aetna
Top choice for blue and gray-collar companies.
MBA offers professional yet highly tailored HR solutions to its clients.
It focuses on relieving business owners from the compliance activities and paperwork that drain their business or firm's revenue-generating activities (known in PEO circles as "what you actually like doing").
Privately held and servicing over 30,000 employees, MBA caters to firms, small businesses, and even franchises across numerous industries.
Year founded: 1986
Health carrier: Aetna
Best choice for established businesses operating in higher-risk workers’ compensation.
We realize that managing workers’ comp coverage and facilitating payroll requires time, manpower, and the right skills. Staying compliant is a burden that often becomes overwhelming without a trusted partner.
We have built our business over the past 36 years by serving leaders like you. Focusing on their individual success has led us to help thousands of business owners get the support they need to stay compliant with coverage and payroll.
Frequently Asked Questions
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Understanding Fees Associated with Changing PEOs
When considering a switch from one Professional Employer Organization (PEO) to another, businesses must be aware of the financial implications involved in the transition. While researching the PEOs we recommend, we found that none impose direct exit fees for terminating their services. This is a positive note for companies worried about the cost of disengagement.
However, it's crucial to consider the onboarding costs with your new PEO provider. Every PEO typically requires a setup fee as part of initiating their services. This fee covers the administrative costs involved in setting up payroll, benefits, and regulatory compliance for your employees under the new arrangement.
What to Expect Financially When Switching PEOs:
No Exit Fees: You will not be charged for leaving your current PEO.
Setup Fee for New PEO: Be prepared to budget for a setup fee when you contract with a new PEO. This fee varies depending on the PEO’s service structure and the specifics of your business needs.
Transitioning to a new PEO is a significant step for any business. Understanding these fees can help you budget accordingly and make an informed decision about whether a new PEO relationship is right for your company’s growth and operational needs.
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Setting up with a Professional Employer Organization (PEO) service provider can vary in time depending on several factors. Generally, the process involves a considerable amount of documentation that you, as a small business owner, must provide.
The PEO then needs to process this paperwork and handle various registrations with government bodies to ensure compliance. Typically, this setup phase ranges from three to six weeks.
However, most small businesses can expect the process to average around four weeks to complete. This timeframe allows for a thorough and compliant setup that facilitates a smooth partnership between your business and the PEO provider.
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Understanding PEO Fee Structures
When selecting a Professional Employer Organization (PEO), understanding the different fee structures they offer is crucial for managing your finances effectively. PEOs typically utilize two primary methods of billing: the flat fee model and the percentage of payroll model.
Each has distinct implications for your business billing cycle.
Flat Fee Model
Under the flat fee model, your business is charged a consistent, predetermined amount for each employee per month.
This billing structure is particularly beneficial for businesses that value budget predictability.
It allows you to forecast your expenses accurately without worrying about fluctuations in payroll affecting your costs.
This can be especially advantageous for companies with stable headcounts or those in industries where employee compensation does not frequently change.
Percentage of Payroll Model
The percentage of payroll model ties the PEO’s fees directly to your payroll expenses.
Here, the PEO charges a percentage based on the total wages you pay to your employees each month.
This model might be preferable for businesses in sectors with typically lower wages or variable payroll costs due to seasonal hiring or high employee turnover.
It aligns the PEO’s fees with your actual payroll expenditures, potentially lowering costs during periods of reduced payroll.
Business Impact of PEO Fee Structures
Choosing between these two fee structures should depend on your company's financial stability, predictability of payroll, and industry characteristics.
While the flat fee model offers simplicity and consistency, the percentage of payroll option can provide flexibility and cost savings in certain scenarios.
By understanding these models thoroughly, businesses can better align their PEO partnership with their financial and operational goals, ensuring a smoother financial management process.
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Understanding PEO Costs: A Comprehensive Guide
When considering partnering with a Professional Employer Organization (PEO), it's important to grasp the potential financial implications.
The typical expense associated with PEO services can greatly vary, primarily influenced by several critical factors.
Average Cost Range
Generally, businesses can expect to invest about $125 to $185 monthly for each employee when utilizing a PEO.
However, this is just a starting point, and prices can fluctuate considerably based on several dimensions.
Key Cost Influencers
Choice of PEO: Different PEOs have varying pricing structures, so the chosen PEO can significantly affect overall costs.
Scope of Services: The range and nature of services a business opts into also play a crucial role. Common services include payroll processing, benefits administration, and HR compliance.
Employee Benefits: The type of benefits a business decides to provide can impact the cost. More comprehensive benefits packages typically require higher expenditure.
Number of Employees: Typically, larger employee numbers can affect the pricing scale, with potential discounts for higher volume.
It's crucial for businesses to consider these factors when estimating the cost of engaging a PEO, as they directly influence not only the financial investment but also the value derived from such services.
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Book a call with us, and let’s discover if we can help you.
Dinsmore Steele saves you the hassle of asking for your information just once and getting competitive quotes from over 400 of the world's best PEOs. In addition to the added convenience, PEOs give us better rates because they know there's competition for the quality of the clients Dinsmore/Steele brings them.