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The Best PEO Companies For Businesses
These professional employment organizations can take the burden of HR and payroll admin off your hands with reasonable pricing and robust features.
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Expert Analyst & Reviewer
UPDATED
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If you have a small business, you may have looked into a Professional Employee Organization (PEO) to handle some of your administrative needs. What is a PEO for small businesses? The best PEO companies around can take some troublesome HR tasks (such as benefits management, recruiting, and payroll) off your plate.
PEOs may specialize in certain tasks or have an industry-specific focus. But they’re not for everyone. Generally, they are equipped to take on small business functions, such as worker’s compensation, unemployment administration, employee onboarding and training, and legal compliance.
To determine the best PEO companies, we considered price, available features, and the types of small businesses they’re best suited for. Read on to find the right PEO solution for your business.
Learn More About Our Top Picks
| Company | Best For | Next StepsBest For |
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Paychex  |
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ADP Payroll  |
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Justworks  |
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TriNet  |
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Rippling  |
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| Show More Options | ||
CoAdvantage  |
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| Show Fewer Options |
Read more below to learn why we chose these options.
Table of Contents [hide][show]
- The 6 Best PEO Companies For Small Businesses
- 1. Paychex: Best PEO For Customization
- 2. ADP TotalSource: Best For Deep Feature Set
- 3. Justworks: Most Scalable PEO For Businesses
- 4. TriNet: Best PEO For Industry-Specific Expertise
- 5. Rippling PEO: Best For Remote Employee Management
- 6. CoAdvantage 360: Best For Analytics
- Why We Don't Recommend These Options
- Our Methodology For Choosing The Best PEO Companies For Small Businesses
- Which PEO Company Is Right For Your Business?
- PEO FAQs
- In Summary: The 6 Best PEO Companies For Small Businesses
Table of Contents
- The 6 Best PEO Companies For Small Businesses
- 1. Paychex: Best PEO For Customization
- Why We Chose Paychex For Best PEO
- Paychex Pricing
- Paychex Features
- 2. ADP TotalSource: Best For Deep Feature Set
- Why We Chose ADP TotalSource For Best PEO
- ADP TotalSource Pricing
- ADP TotalSource Features
- 3. Justworks: Most Scalable PEO For Businesses
- Why We Chose Justworks For Best PEO
- Justworks Pricing
- JustWorks Features
- 4. TriNet: Best PEO For Industry-Specific Expertise
- Why We Chose TriNet For Best PEO
- TriNet Pricing
- TriNet Features
- 5. Rippling PEO: Best For Remote Employee Management
- Why We Chose Rippling For Best PEO
- Rippling PEO Pricing
- Rippling PEO Features
- 6. CoAdvantage 360: Best For Analytics
- Why We Chose CoAdvantage For Best PEO
- CoAdvantage 360 Pricing
- CoAdvantage 360 Features
- Why We Don't Recommend These Options
- Our Methodology For Choosing The Best PEO Companies For Small Businesses
- Which PEO Company Is Right For Your Business?
- PEO FAQs
- In Summary: The 6 Best PEO Companies For Small Businesses
The 6 Best PEO Companies For Small Businesses
The best PEO companies will dramatically help you save time and be more efficient by handling your benefits administration, payroll needs, and hiring and recruiting, all while working with your company and its employees to stay true to your vision and ethics.
1. Paychex: Best PEO For Customization
Paychex |
|---|
Payroll Processing Time
Two days (faster costs extra)Pricing
Starts at $39/month + $5/employeeBusiness Size
Self-employed contractors to enterprises with 1,000+ employeesPros
- Excellent customer support
- Varied employee benefits
- Tailored plans for small businesses
Cons
- Non-transparent pricing
- Five-employee minimum
- Add-on features can get pricy
Why We Chose Paychex For Best PEO
Paychex has built a reputation as a small business payroll provider. Paychex delivers an all-in-one payroll and HR platform for small businesses through its PEO services. On the customer end, the Paychex Flex software is relatively easy to use and has 24/7 customer support to help with setup and ongoing use. Paychex offers an extensive selection of employee benefits.
Paychex is counted among the best PEO companies for tailoring its features and services to a business's unique needs. Customers benefit from working directly with a designated HR professional to develop a customized plan. Businesses looking for a customizable and more personal approach should give Paychex a try.
2. ADP TotalSource: Best For Deep Feature Set
ADP Payroll |
|---|
Payroll Processing Time
VariablePricing
CustomBusiness Size
Small to enterprise-sized businesses (1-1,000+ users)Pros
- Specialized HR consultants
- Robust features and integrations
- Available in more than 180 countries
- User-friendly mobile app
Cons
- Five-employee minimum
- Pricing not transparent
- Not cheap for small businesses
Why We Chose ADP TotalSource For Best PEO
ADP is one of the biggest players in the workforce and HR management industry, with over two million small business employees supported by its services. This scale gives small businesses greater access to features, resources, and services. For starters, ADP TotalSource boasts Fortune 500-level healthcare plans and full-service payroll.
ADP also has a wide range of specialized benefits that small businesses can offer their employees, such as telehealth services, commuter benefits, and discounts on travel, retail, and entertainment.
Switching to a PEO provider will require some adjustments for you and your employees. Fortunately, customer service is another reason ADP ranks as one of the best PEO companies for small businesses.
3. Justworks: Most Scalable PEO For Businesses
Justworks |
|---|
Payroll Processing Time
4 daysPricing
Starts at $49/monthBusiness Size
Small-medium (25-175 users)Pros
- Transparent pricing
- User-friendly interface
- Excellent benefit packages and add-ons
Cons
- Limited reporting
- No mobile app
Why We Chose Justworks For Best PEO
Since launching in 2012, Justworks has emerged as the fastest-growing PEO for small businesses. Justworks provides full-service benefits administration, payroll processing, HR, and compliance support within its two PEO plans: Basic and Plus.
Small businesses that opt for the Plus Plan can access Justworks' full suite of corporate-level employee benefits. These include health insurance plans from Aetna, Kaiser, and United; dental and vision insurance; HSA and FSA accounts; and wellness perks.
Justworks can also assist with COBRA administration. Another noteworthy feature is Justworks' time and attendance program, Justworks Hours, which integrates across the platform to automate payroll and other HR tasks.
4. TriNet: Best PEO For Industry-Specific Expertise
TriNet |
|---|
Payroll Processing Time
VariablePricing
Quote-basedBusiness Size
Small to mid-sized businesses (5-1,000+ users)Pros
- Dedicated team of experts
- Numerous employee benefits options
- Strong payroll features
Cons
- Five-employee minimum
- Unclear security measures
Why We Chose TriNet For Best PEO
TriNet delivers full-service payroll processing, HR, benefits administration, compliance support, and risk mitigation services to small and mid-size businesses. Tailoring services and assistance to different industry sectors is where TriNet stands out among the best PEOs. Depending on a small business's needs and sector, TriNet provides a personal team of consultants with relevant experience and expertise.
TriNet offers specific services to a wide range of specific industries. The chances are high that its umbrella would cover your small business. If you've had a difficult time looking for niche HR or payroll services specific to your industry, you may want to give TriNet a try.
5. Rippling PEO: Best For Remote Employee Management
Rippling |
|---|
Payroll Processing Time
2 DaysPricing
Starting at $8/month per employeeBusiness Size
Small enterprise-sized businesses with 2-2,000+ usersPros
- Deep integration options
- Easy-to-use interface
- Multistate employee management
Cons
- Lacks IRS and ESAC accreditation
- Phone support is an add-on
Why We Chose Rippling For Best PEO
Rippling PEO covers the bases in terms of payroll, benefits administration, compliance support, and risk management. Each solution is organized in its own module that can be accessed from the main Rippling interface. Other business software can be integrated here as well. Rippling offers more than 400 integrations, including applications related to collaboration, customer support, design, finances, HR, marketing, and sales.
As remote work becomes increasingly common, small businesses will have to manage employees and technology in dispersed locations. In terms of tech, Rippling PEO provides remote device management for employees via an auto-installing app. This allows small business owners and the PEO team to make changes to any employee's laptop from the Rippling platform. Businesses with employees in multiple states can receive assistance with local tax registration and meeting minimum wage levels across locations.
6. CoAdvantage 360: Best For Analytics
CoAdvantage |
|---|
Pros
- Solid reporting and analytics
- Recruiting and employee screening support
- Strong payroll features
Cons
- Pricing not transparent
- Lacks industry specialists
- Fewer benefit options than other companies
Why We Chose CoAdvantage For Best PEO
CoAdvantage 360 is a comprehensive PEO with a knack for payroll, benefits administration, risk and compliance support, and HR services. Growing businesses can use employee recruitment services to find the best candidates. CoAdvantage's recruiting team can help tailor job descriptions, post jobs to appropriate recruitment websites, schedule interviews, and conduct pre-employment assessments.
The CoAdQuantum online portal allows businesses to manage HR duties, such as PTO tracking and employee training. Additionally, the portal lets users generate over 70 types of reports and analyze various metrics in real time. This is a major asset for business owners looking to maximize productivity to further growth. And CoAdvantage's compensation management tools make it easy to reward high-performing employees with bonuses and merit pay.
Why We Don't Recommend These Options
There are hundreds of PEOs to choose from. And while there are many reputable companies, they don’t all excel in a specific area like our top seven PEOs. The following PEO company didn’t quite make the cut.
Amplify PEO: Slightly Thinner Feature Set
Amplify PEO offers the standard features needed for HR and workforce management. However, Amplify does not stand out for a specific type of business or facet of HR services. Amplify’s website does not convey much detail about its services compared to the best PEOs on this list.
For instance, Amplify highlights third-party integrations but does not identify any applicable apps. It’s worth noting that Amplify claims to have saved companies $1,185 annually per employee on average. This is encouraging for receiving a return on investment, but businesses that meet other criteria outlined above (industry-specific needs, growing businesses, etc.) will likely benefit from another PEO company.
Our Methodology For Choosing The Best PEO Companies For Small Businesses
We looked at and compared dozens of PEO companies in our research for this list. Some of the most important factors were how transparent the company is with its pricing and how easy it is to get a quote, along with its feature and benefit offerings.
A good PEO company for a small business should provide a varied list of benefit options and have access to trained professionals in a variety of fields. Things like a strong mobile app and a simple interface were also big pluses when it came to narrowing down our list.
Which PEO Company Is Right For Your Business?
When evaluating PEOs for your business, it’s helpful to consider what services you want to outsource and what support your employees need to succeed. And since many PEOs don’t divulge their pricing publicly, it’s worth requesting quotes from multiple companies to find a solution that works for your budget.
Small businesses dedicate about 17% of their working hours to administrative tasks. Outsourcing payroll, benefits administration, and other HR duties to a PEO can save precious time and money that could be better spent running and growing your business.
PEO FAQs
In Summary: The 6 Best PEO Companies For Small Businesses
- Paychex:
- Most customizable PEO
- Custom pricing
- Good fit for small businesses
- ADP Payroll:
- Most feature-rich PEO
- Custom pricing
- Advanced features & ample integrations
- Justworks:
- Most scalable PEO for businesses
- Starts at $49-$99/employee
- Large selection of benefits
- TriNet:
- Best PEO for industry-specific expertise
- Custom pricing
- Expert customer support
- Rippling:
- Best PEO for remote employee management
- Custom pricing
- Includes strong HR & multi-state employee support
- CoAdvantage :
- Best PEO for analytics
- Custom pricing
- Includes HR, benefits, & job costing
Matt Sherman
Expert Analyst & Reviewer at Merchant Maverick
Matt has been helping small businesses make decisions since 2017. He has written reviews and articles across many different channels but specializes in the point of sale, payroll, and small business insurance categories and has been quoted in articles for Fox Business, Forbes, and other publications. Prior to joining Merchant Maverick, Matt was a journalist and editor for 14 years for a pair of weekly newspapers. He is a graduate of the University of Oregon and currently resides in Gladstone, Oregon.
View Matt Sherman's professional experience on LinkedIn.
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