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PEO Services Guide: Feature Comparison and Checklist

PEO

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In this guide

Key Features Breakdown: Compare essential HR services PEOs offer, including payroll services, comprehensive HR support, and benefits administration.
Evaluation Checklist: Assess PEO providers based on HR solutions, pricing, customer support, and technology integrations.
Cost and Compliance Considerations: Understand PEO pricing models, tax filings, and compliance requirements, including IRS-certified and ESAC-accredited providers.
Who Should Use a PEO?: Learn how PEOs work for small businesses, mid-sized companies, and growing enterprises looking for efficient HR administration.
How to Compare PEOs: Get insights into choosing a PEO, evaluating co-employment relationships, and ensuring alignment with your company culture.
Checklist: What to Look for in a PEO: Use our comprehensive PEO evaluation checklist to find the right partner for your HR outsourcing and payroll needs.

Find the right PEO for your business

Managing HR, payroll, and compliance while scaling your business can be overwhelming. Employment laws, payroll taxes, and benefits administration vary by state, making HR processes complex and time-consuming. Small and mid-sized businesses often struggle with HR tasks that require in-depth expertise, from risk management to regulatory compliance.

A Professional Employer Organization (PEO) provides HR outsourcing solutions, handling payroll processing, HR functions, and employee benefits. But with so many service providers available, how do you choose the best fit for your business needs?

This guide helps business owners, HR professionals, and finance leaders evaluate PEO solutions effectively, ensuring the right choice for growth, compliance, and cost savings.

Who is this guide for?

Business Owners and CFOs: Optimize HR functions and control costs with the right PEO services.
HR Professionals and Leaders: Gain peace of mind with HR compliance, risk management, and employee relations support.
Finance and Operations Teams: Streamline payroll tax filings, HR administration, and regulatory compliance.

Why choosing the right PEO matters

The National Association of Professional Employer Organizations (NAPEO) reports that businesses using PEOs experience higher employee retention, improved HR support, and reduced HR administration costs. However, not all PEO solutions offer the same level of service. Comparing providers ensures your business gets the best HR expertise, competitive benefits, and compliance support.

FAQs

What is a professional employment organization?

PEO stands for professional employer (or employment) organization. Think of a PEO as your behind-the-scenes human resources powerhouse. They step in to streamline everything from payroll to compliance, making your team’s day-to-day easier and your business run smoother. By partnering with a PEO, you get to:

Ease your HR management and payroll teams’ workload
Stay on top of state-specific compliance for workers’ compensation, employment taxes, and more
Offer more competitive and cost-effective benefits, including health insurance, retirement plans, and more
Speed up the employee onboarding process
Scale your business seamlessly across the US

Why makes Deel PEO different?

Deel PEO is the market leader for remote team PEO services:

Fast and efficient setup: With a dedicated onboarding manager, you'll receive personalized guidance, customized training, parallel payroll setups, and seamless HR data transitions, all aimed at getting you up and running in weeks, not months
Transparent pricing: Experience straightforward and transparent pricing with no hidden costs. You’ll know exactly what you’re paying for, with clarity and control at every step
Choose your benefits provider: Enjoy the freedom to continue with your current benefits provider while we handle the bulk of the compliance and administrative tasks
In-house expertise: Rely on our in-house experts for US state registration, payroll, taxes, labor laws, employee handbooks, and other HR needs, ensuring you stay informed and compliant at all times
Rapid issue resolution: Our PEO services include a dedicated team of Customer Success Managers (CSMs) and 24/7 in-app chat support, with an average first response time of 1.25 minutes, providing quick and efficient help whenever you need it
Expand globally on a single platform: Deel supports global teams and ensures full compliance in over 100 countries, making it easier to hire, onboard, and manage international employees through one comprehensive platform

How do I change PEO providers?

Reevaluating your current PEO partnership provides an excellent opportunity to affirm your business needs and aspirations. To successfully change PEO providers, you have to:

Audit your current system to identify areas of improvement and goals.
Research and select your new PEO provider.
Develop a transition plan for your team and workforce.
Clearly communicate the transition process to your team.
Implement the new PEO and migrate your workforce data.
Train and onboard your team on the new platform.
Monitor and adjust your PEO services as needed.

Keep reading: How to Change Your PEO in 8 Steps

How much does a PEO cost?

Most PEO companies implement an administrative fee for their services. There are two common pricing models: a flat annual fee per employee, generally near $1,000 USD, or a percentage of total payroll, commonly between 2% and 11%. There might also be additional fees for access to enhanced HR functions, detailed reporting capabilities, or specific system integrations.