PEO services offer a strategic advantage by freeing up your HR team to focus on crucial, company-specific business needs, rather than routine administrative tasks. These services alleviate excessive HR administration, provide compliance support across states, grant access to large group healthcare plans, enhance domestic HR capabilities and ultimately result in long-term cost savings. By using hr outsourcing, large and small businesses can tap into specialized expertise, ensure regulatory compliance, offer competitive benefits, and streamline operations for new hires, allowing for a more efficient and effective business operation.

When selecting the best PEO provider, it's crucial to consider a few key factors. 

First and foremost, prioritize pricing transparency; opt for hr software that breaks down costs by line item rather than presenting confusing bundled prices. Unlike other providers, Deel doesn’t charge you for comprehensive HR management features such as IT management, App management, Expense management, and Reporting.

HR support is paramount, and opting for a PEO offering dedicated HR generalists ensures a higher level of service compared to those relying on a 1-800 hotline model. At Deel, you can rely on comprehensive HR support from our in-house HR and payroll experts.

Evaluate flexibility in working with preferred brokers, as some PEO companies may limit this option. Deel offers you the freedom to choose the broker you wish to work with – bring your own or access healthcare plans from the leading benefit carriers at affordable rates.

When a company engages with a PEO, they enter into a co-employment arrangement. As co-employers, the PEO and client contractually share employer responsibilities and liabilities. 

The client company retains ownership and control over its operations, including day-to-day management of employees and product development, marketing, sales, and service. The PEO will typically assume responsibility for many human resources-related projects, including administrative tasks, employee records, employee benefits, payroll processing, and employment taxes.

Both the client company and the PEO have compliance obligations. However, PEOs typically assume much of the liability for the business of employment, such as risk management, human resource management, payroll taxes, and employee tax compliance—all of which contribute to peace of mind for business owners.

Most PEO companies will charge an administrative fee for their services, often using one of two pricing structures: a fixed monthly fee per employee, usually around $1,000 per employee annually, or a percentage of overall payroll, usually 2-11%. Some platforms might also charge you for accessing their HR functions, reporting, or enabling certain integrations. 

Get a customized quote from Deel to see how you can cut admin costs with our HR suite (free for companies with <200 people) and affordable enterprise-level HR benefits.