The Ultimate Guide to PEO Services in the US
Want to learn more about how PEO services can help your business? Here’s all you need
The Top 5 US PEO Providers Compared
Thinking of partnering with a PEO company? Make sure you read our top 5 comparison first!
Partnering with a PEO is a great way to outsource tedious and complex HR tasks so you can focus on running your business. However, with so many providers available, it can quickly become overwhelming to decide who to choose.
Luckily, we’ve done some digging and compared 5 of the leading U.S. PEO providers for you. This way, you can be more informed about what’s out there and how to choose the right provider to meet your needs.
What Is a PEO?
A Professional Employer Organization (PEO) is an external company hired by a business to handle its essential HR functions. Both businesses enter a co-employment relationship where the PEO becomes the employer of record for compliance and tax purposes.
Businesses that hire a PEO remain in control of the day-to-day operations and key decision-making while their HR tasks are handled in the background.
Essential tasks that can be outsourced include:
- Payroll Administration
- Tax Management
- Human Resources Support
- Employee Benefits Administration
- Workers’ Compensation
- Compliance & Legal Support
- Risk & Safety Management
- Training & Performance Management
What Are the Benefits of Using a PEO?
Reduced HR Costs & Overheads
Hiring a PEO can significantly reduce your operational costs. Having in-house HR professionals requires you to fund recruitment, training, salary, and benefits. Outsourcing allows you to cherry-pick the services that you need, at a fraction of the cost of a full-time team.
Simplified Payroll & Tax Management
US small businesses spend an average of 260 hours on payroll annually. When partnering with a PEO, you can reclaim this time and use it to focus your efforts on growing other aspects of your business. With their expertise, you’ll also be able to navigate payroll compliance with more confidence.
Better Employee Benefits at Lower Costs
With an ever-increasingly competitive job market, a comprehensive benefits offering can help retain and attract top talent. Due to PEOs having multiple clients on their books and established relationships with providers, you can access a higher-quality benefits package for your staff.
Improved Compliance & Risk Mitigation
If you operate across state lines or multiple countries, you’re already familiar with the differences in laws and regulations. Outsource the responsibility for keeping up with these to a PEO, and you can sleep soundly at night. This also makes them the perfect option if you’re looking to expand into new territories or markets.
Higher Employee Retention
Replacing an employee can cost you anywhere between 40% and 200% of their annual salary, depending on their position. That’s countless hours and dollars down the drain, which for small businesses could be devastating to your productivity and budget. Businesses partnered with PEOs have a 12% lower turnover rate than non-PEO companies (50.4% vs. 57.6%), even when adjusting for size and growth rate.
Time Savings & Operational Efficiency
If you outsource your HR tasks to a PEO, this can save your team countless hours that they were spending on duties not in their remit. Instead of handling recruitment, payroll, or onboarding, they can focus on what you’re actually paying them to do: their jobs!
Flexibility & Scalability
One of the biggest strengths of using a PEO is the flexibility it offers. Whether you’re looking to bulk up or strip back your operations, a PEO can manage these efficiently and legally. Their services are also customizable, so you are always supported with the level of HR tasks that you require.
Top 5 Compared: Our Verdict
Just before we get started, we need to clear something up. This won’t be a straight shootout to see who is the best. Instead, think of it as an overview of each provider, their pros and cons, and what they can do to help your business with its PEO needs.
| Provider | Key Services | Best For |
|---|---|---|
| ADP TotalSource | • Mid-sized & Enterprise HCM • HR Service Models • Full-Service HR Outsourcing • Payroll (Small to Enterprise) • Time & Attendance • Workforce Management • Talent Solutions • Benefits & Insurance • PEO Services • Compliance Services | Full HR and Payroll Services |
| Justworks | • Payroll (all employees, contractors, multi-state) • Tax Filings (W-2, 1099) • Payroll Reporting • EPLI & SUI Administration • Workers’ Comp (via PEO) • Compliance Alerts • Onboarding & Offboarding • Timecards & PTO Mgmt • ATS Integrations • Custom Reporting & Analytics | Startups & Small Businesses (PEO with Compliance) |
| Deel | • Payroll Processing • W-2/1099 Filings • Workers’ Compensation • EPLI & COBRA Compliance • ACA Reporting • Benefits (401k, health) • Recruiting & Talent Mgmt • Onboarding & Document Mgmt • Expense & Leave Mgmt • Termination Handling • Global Compliance Training | Businesses with Global Operations |
| Engage PEO | • Payroll & Tax Admin • HR Services • Employee Benefits • Compliance & Training • Risk Management • Integrated HR Tech • OSHA Safety Resources • Attorney-Led HR Consulting | Small to Mid-Sized Businesses in High-Risk Industries |
| Insperity | • Payroll & Tax Filing • Wage Garnishment • Compliance Support • Self-Service Portal • Benefits Admin • Time Tracking • Onboarding • Reporting (50+ reports) • Risk Mgmt & Safety • Talent Mgmt & Recruiting • Compensation & Performance Mgmt • Engagement Programs • Learning Mgmt • Workforce Analytics | Growing Businesses Needing Flexible PEO Solutions |
- Pros
- Comprehensive HR suite.
- Easy accessibility for employees.
- Customized solutions.
- Detailed reporting.
- Cons
- Expensive for small businesses.
- Technical errors on the employee side.
- Confusing setup.
- Non-transparent pricing.
Kicking things off today, we have ADP (Automatic Data Processing). They’ve been around for over 70 years and today support over 1 million businesses of all sizes across 140+ countries with their HR needs. Known for its innovative, data-backed solutions and its unwavering commitment to compliance, ADP is one of the market leaders for a reason.
Why Choose ADP?
Over 1 Million Customers: ADP partners with over a million businesses across 140 countries, which is a testament to its quality.
Multi-Award Winner: ADP consistently wins at industry awards ceremonies each year. Trophies in their cabinet include 2025 FORTUNE® World’s Most Admired Companies (for 19 consistent years) and Leader Multi-Country Payroll (MCP) Solutions for the last 10 years.
Global Network: HR regulations differ both at the state level and internationally. ADP operates in 140 countries worldwide, so you have access to experts with this knowledge from day one.
Pre-Built Integrations: Their platform easily connects with other software that your business may rely on, including QuickBooks, SAP, Oracle, Workday, Slack, and Microsoft Teams.
Justworks
Best for startups and small businesses looking for PEO services that come with regulatory compliance.
- Pros
- Tailored PEO services for very small businesses (10 employees or fewer).
- Transparent pricing and plan details.
- Employer of Record (EOR) option supports hiring international talent.
- Cons
- Mid- and high-tier plans don’t allow customization of pay dates or pay periods.
- Advanced analytics are limited to the premium PEO Plus package.
- Tip processing features are excluded from PEO plans (only available with entry-level Payroll).
Formed in 2012, Justworks is a cloud-based PEO provider that specializes in small businesses. Powered by their core values of openness, integrity, camaraderie, grit, and simplicity, if you run a smaller operation, you may have just found your perfect partner.
Why Choose Justworks?
All-in-One HR Platform: Payroll, benefits, and compliance are all managed through their simple-to-use platform.
Built for Small Businesses: Most of their plans are designed for companies that have 10 or fewer employees. This gives you a wide range of features at lower-tiered plans, although for things like advanced analytics and tips processing, you will have to pay extra.
Transparent Pricing: All of their fees are displayed online, allowing you to budget accordingly and avoid any nasty surprises at bill time.
24/7 Customer Support: Benefit from 24/7 support via phone, chat, email, or Slack so you can get the support you need when you need it the most.
Strong Compliance Features: Real-time alerts and automatic filings keep you up to date with federal, state, and local regulations.
- Pros
- Available in 150+ countries, making them perfect for businesses with global ambitions.
- Supports work visa applications in dozens of countries, making hiring internationally easier.
- Fortune 500®-level benefits.
- Cons
- No performance management tools included in PEO services.
- Does not offer FSAs, HSAs, or employee wellness programs.
- Users report high currency conversion fees.
Deel is an expert in all things global HR and PEO services. Their unified platform offers everything you need to hire, pay, and manage within the U.S. and abroad. They currently have over 35,000 businesses as clients and have hired 650,000+ workers across 150 countries, ideal if you have ambitions beyond the U.S. borders.
Why Choose Deel?
Fast Setup Time: Deel prides itself on getting you set up with their PEO services quickly. Unlike other providers, you can be up and running in weeks, not months. Transparent Pricing: From day one, you’ll know exactly what you’re paying. Their clear and predictable pricing helps you to manage budgets and avoid hidden costs. Fortune 500®-Level Benefits: With access to a higher-quality benefits package, you can retain current staff members while attracting a higher caliber of new employees. In fact, 85% of Deel’s PEO partners have reported their staff being happier with this new level of benefits. Quick Resolution Times: Don’t wait around for support. Deel provides dedicated customer success managers and 24/7 in-app support, with an average 42-second first response time. Expert In-House Knowledge: Deel has specialists all over the U.S. and beyond, allowing you to benefit from experts with knowledge of local, federal, and international employment laws.
Engage PEO
Best for small to mid-sized businesses that operate in high-risk industries.
- Pros
- All HR consultants are licensed attorneys with labor and HR expertise.
- Holds IRS Certification and ESAC Accreditation; less than 3% of providers in the US hold both.
- Offers Fortune 500® benefits and services.
- Cons
- Does not offer unemployment insurance.
- May offer more features than most small businesses need.
Engage PEO delivers PEO services but with one unique advantage not found anywhere else in the country: all of their consultations are qualified attorneys with strong backgrounds in labor and employment law. If you operate in a high-risk industry that requires deep and extensive legal support and expertise, then Engage PEO is perfect for you.
Why Choose Engage PEO
Attorney-Led HR: All HR consultants are licensed attorneys with labor law expertise, offering you only the best level of support and legal guidance. Engage PEO is the only provider that offers this in the country. Certified Excellence: Engage is both IRS-Certified PEO (CPEO) and Employer Services Assurance Corporation (ESAC) certified. Less than 3% of all PEOs have both, offering you unmatched reliability and compliance at the highest level. Fortune 500® Benefits: Gain access to Fortune 500® benefits and services, improving employee retention and satisfaction while becoming more attractive to potential employees. Comprehensive Support: From onboarding to risk management, Engage PEO provides seamless service integration, backed by deep HR and legal knowledge. Cut Costs: Engage PEO claims they can reduce HR costs by 21%, despite offering tailored, consultation-based support.
Insperity
Best for rapidly changing businesses looking for flexible and scalable PEO solutions.
- Pros
- Back-office HR administration that complements in-house HR staff.
- Scalable services that adapt to your ever-changing needs.
- Industry-specific PEO solutions for IT, manufacturing, finance, and more.
- Cons
- Small business plans may include more services than required.
- Users report difficulty reaching dedicated HR support teams.
- Limited customization compared to some competitors.
Rounding off today’s list, we have Insperity. Founded in 1986 with a mission to help companies “run better, grow faster, and make a difference,” Insperity supports organizations by delivering scalable HR solutions tailored to their needs. At the heart of everything they do is their core values of respect, integrity, and accountability, and they are a great choice if you’re a rapidly growing business.
Why Choose Insperity?
Back-Office HR Administration: Insperity’s services integrate seamlessly with your in-house HR team, improving efficiency and collaboration. Scalable Solutions: Their flexible approach allows you to easily add or remove services to match your growing (or shrinking) needs. Industry-Specific Support: Insperity offers PEO solutions for IT, manufacturing, finance, healthcare, and more. This gives you access to sector-specific compliance knowledge and expertise. Comprehensive Benefits Access: Offer your team Fortune 500®-level benefits packages, boosting employee retention and increasing the chance of attracting top-tier personnel in the future. Professional Accreditation: Insperity is both IRS-certified and Employer Services Assurance Corporation (ESAC)-accredited, showing its commitment to quality.Tips on Choosing the Right PEO Provider
Step 1
Identify the Services You Need
First off, clarify what you actually need your PEO to handle. Is it just payroll, or full-scale HR support? This way, you can select a partner that offers exactly what you’re looking for and avoid paying for unnecessary services.
Defining your needs upfront helps filter providers quickly, allowing for a faster sourcing and implementation process.
Step 2
Review Certifications and Accreditations
PEO certifications are a quick way to gauge a prospective partner’s credibility. Be on the lookout for recognized credentials like CPEO, CPP, CEBS, ESAC, and SHRM. These display their commitment to financial stability, payroll expertise, benefits management knowledge, ethical standards, and HR law competency.
Step 3
Confirm Their Expertise
While generalist PEOs work for many businesses, niche industries like construction, trucking, healthcare, and real estate benefit from specialized expertise. Industry-specific knowledge helps with compliance, hiring practices, and risk management. If you plan to expand into new locations or markets, ask for case studies to confirm they know what they’re doing.
Step 4
Factor in Cost
PEOs use different pricing models, either per-employee flat fees or a percentage of payroll. A higher-priced provider should offer broader services, stronger support, and more qualified staff than their cheaper counterparts. Just make sure it fits in your budget; it’s not worth pulling resources from elsewhere and compromising your operations.
Step 5
Always Check Reviews & References
Research real-world feedback on sites like Google Reviews or Trustpilot to make sure everything they told you in their slick sales pitch is true. Occasional negative comments are normal, but repeated issues (especially around support or communication) should be taken very seriously and make you think twice before signing a contract.
How to Get a PEO for Your Business
Now that you’re a PEO expert, there’s just one thing left to do: find one for your business!
Here at Commercial Experts, we’ve already helped countless U.S. businesses like yours find the best PEO partner for them, and we’d love for you to be next!
All you have to do is tap the button below and answer a few quick questions about your business. Then, based on your responses, get a range of free PEO services quotes tailored to meet your specific needs.
Don’t like what you see? No problem: this service is 100% free, no strings attached, so walk away with zero obligation.
FAQs
What is a PEO and how does it work?
A Professional Employer Organization (PEO) partners with businesses through a co-employment model. The PEO becomes the employer of record for compliance and payroll purposes while you maintain full control of operations. They handle HR, benefits, taxes, and risk management, reducing costs and complexity.
What are the main benefits of using a PEO?
PEOs lower HR costs, reduce compliance risks, and simplify payroll and benefits administration. They help small and mid-sized businesses access Fortune 500®-level benefits at competitive rates. With less time spent on admin tasks, leaders can focus on operations, strategy, and growth, improving employee retention and efficiency.
Which PEO is best for my business?
ADP offers full-scale HR solutions, Justworks suits startups, Deel supports global operations, Engage PEO specializes in compliance-heavy industries, and Insperity provides flexible, scalable options. The best choice depends on your company’s size, industry, budget, and whether you need domestic or international support.
How do I find the right PEO for my company?
All you have to do is tap the button on this page and answer a few questions about your business. Then, based on your response, you’ll receive a range of quotes from some of the U.S.’s leading PEO providers. This is a totally free service with no obligation to commit, so if you don’t like what you see, just walk away without spending a penny.
