Featured Partners
1
Gusto
Yes
Yes
$49 per month plus $6 per user
2
Justworks
Yes
Yes
$50/month + $8/user
3
ADP
Yes
Yes
Custom
Compare the Best PEO Services of 2025
Best PEO Services of 2025
Methodology
The initial stage of our evaluation of PEO services examined the features and functionality of 25 products sold by 21 vendors to generate overall scores. I conducted a more thorough assessment of the 10 top-scoring PEO services to identify each product’s strengths and weaknesses. Our reviews highlight the features that set each of the 10 products apart from the competition and the type of business each one will be most useful to.
| Decision Factor | Scoring Weight | Description |
|---|---|---|
| Payroll | 21% | The factors weighed most heavily in this category are payroll reporting, custom pay schedules, unlimited payroll runs and off-cycle payroll. |
| General Features | 19% | We aggregated the product’s ratings on three popular user review sites to generate its score in this category. |
| Service and Support | 16% | The features deemed most important here are recruiting and talent management, employee performance management, internal investigations and employee training and development. |
| Consumer Sentiment Index | 15% | In this area, safety audits, OSHA compliance, unemployment insurance and safety training were given the most weight. |
| Benefits | 12% | Providing a dedicated support representative, support by chat and phone and live chat support contributed to each product’s score in this category. |
| Risk and Compliance | 11% | Offering a comprehensive benefits package and the quality of the service’s overall benefits account for this score. |
| Certifications | 6% | Supporting three types of certifications contributed to this score: CPEO, ESAC and SHRM-CP/SHRM-SCP. |
How To Choose the Best PEO Service
When you’re shopping for a PEO service, you’re not buying a product, you’re selecting a business partner that will serve as your co-employer.
Essential PEO Service Features
Among the aspects to consider when vetting PEOs are their accreditations, range of HR services offered, the services’ underlying HR platforms and their support options for managers/administrators and employees.
- PEO accreditations. The IRS’s voluntary Certified Professional Employer Organization (CPEO) program indicates to employers that the PEO has met IRS standards, which include background checks, financial reporting obligations and third-party audits. The Employer Services Assurance Corporation (ESAC) offers accreditation of PEOs to confirm their financial stability, ethical operations and regulatory compliance. Engage PEO has both CPEO and ESAC accreditation.
- Range of HR services. PEOs process their clients’ payroll in one or more states and handle most HR duties, including recruiting and onboarding, workplace compliance, employee performance management, training and development, benefits administration and workforce analytics. Deel, Rippling and Justworks go beyond the standard PEO services to offer employee practice liability insurance (EPLI).
- Integrated HR platform. PEOs provide their business clients with a unified HR foundation that combines payroll and HR functions to make these processes faster, more efficient and more accurate. AI techniques enhance the effectiveness of HR platforms by personalizing the employee experience and adding predictive analytics that forecast workforce trends.
- Support options. The PEOs in our ranking have HR and payroll experts on their staff who offer guidance and advice on demand, and who are available to answer questions and troubleshoot problems for employees. TriNet’s support reps are available by live chat 24/7 every day except U.S. holidays. Engage PEO also stands out in this area because all its HR advisors are licensed attorneys.
Value
Only a handful of the PEOs in our rankings publish their prices, which presents a challenge for SMBs shopping for PEO services. However, PEOs deliver value to SMBs by allowing their clients to access a broader range of benefits providers without requiring the purchasing power of large enterprises.
“[Enlisting a PEO] is a great way for [small businesses] to offer a wider range of employee health and wellness benefits,” HR consultant Tamica Sears explains. “They are also typically more affordable because of the larger employee pools offered by PEOs. When companies don’t have the resources to take on the liability of payroll, taxes, unemployment and other compliance items, PEOs can be a lifesaver. “
Featured Partners
1
Gusto
Yes
Yes
$49 per month plus $6 per user
2
Justworks
Yes
Yes
$50/month + $8/user
3
ADP
Yes
Yes
Custom
Frequently Asked Questions (FAQs)
Which PEO service is best for your business?
The best PEO service for your company depends on your needs. For example, the size and geographic distribution of your workforce as well as the range and quality of benefits you want to offer your employees can all affect your PEO choice.
What’s the difference between a PEO and an administrative services organization (ASO)?
When your business signs up with a PEO, you enter a co-employment relationship with the company and share responsibilities and liabilities for managing your workforce while you retain full control of your business’s day-to-day operations and strategic planning. By contrast, when your company outsources its HR functions to an ASO, you remain solely responsible for managing your workforce.
What are the risks involved in outsourcing HR operations to a PEO?
The biggest concern of most SMBs that outsource their HR to a PEO is losing control over how their employees are compensated, although the business retains responsibility for setting worker compensation rates and workplace policies. It becomes more difficult and time-consuming to make changes related to payroll and benefits, and employees can lose some of their connection to the company’s culture and organizational values. Other PEO challenges relate to communication and integration, control of HR costs and data ownership and accessibility.
Do PEOs take full responsibility for HR and payroll tasks?
PEOs share some responsibilities and liabilities for managing your company’s payroll, HR, benefits administration and other important administrative tasks. They aren’t involved with the day-to-day management of your business operations or with strategic or financial planning.
Can a PEO replace in-house HR staff?
Rather than replacing your in-house HR staff, PEOs work with them to coordinate the provision of employee-related services and support and to communicate your company’s culture and unique characteristics. That’s why it’s imperative to establish a good working relationship with your PEO service from day one.
