How Much Does a PEO Cost?

What is the Average Cost of PEO Services?

The average can vary depending on the size of the business and the services that are required. However, there are some general guidelines that can be used to estimate the cost of a peo. For example, a small business with fewer than 10 employees, the cost of a PEO can be as low as $250-$300 per month. For larger businesses, the cost of a peo can be upwards of $1,000 per month.

A PEO company's average administrative rate is between 2-4% of annual payroll. Consider how that estimate relates to your business. Is it possible to find a professional to manage all payroll- related administration throughout the year for that cost- not including the costs of check stock, payroll programs, annual upgrades and other related expenses?

Plus, that person would need to be a certified risk manager, able to review your safety manual, help identify potential workplace hazards and provide training material.

They would also need to be a licensed HR expert, able to minimize your employment liabilities, assist with hiring/Firing procedures, wage and hour laws, employee training, performance reviews, new hire reporting and more.

Is PEO a Good Idea?

When considering the cost of a PEO, it is important to remember that the price is typically inclusive of all services provided. This means that businesses will not have to worry about additional costs, such as payroll taxes or benefits expenses.

In addition, businesses will often save money by using a PEO service, as they will no longer need to hire in-house staff to handle these functions. As a result, the cost of a PEO can be an excellent value for businesses of all sizes.