Compare & decide
A payroll provider processes. A PEO takes responsibility.
Payroll services calculate and remit what you tell them. A PEO enters a co-employment relationship, brings benefits and comp with it, and takes on defined employer administration by contract.
Side by side
| Payroll provider | PEO | |
|---|---|---|
| Payroll processing | Yes | Yes |
| Payroll tax filings | Yes, from your data, under your accounts | Yes, under the PEO's employment tax accounts |
| Large-group benefits access | No | Yes |
| Workers' comp included | Sometimes referred out | Yes, inside the relationship |
| HR professionals on call | No, or an upsell | Yes, included |
| Compliance responsibility | Stays with you | Defined responsibilities shift by contract |
| Relationship | Software vendor | Co-employer |
Common questions
We like our payroll provider. Why change?
If payroll processing is your only need, you may not have a reason. Companies move when the pain is benefits, compliance, or HR workload, which a payroll vendor does not solve.
Is a PEO more expensive than payroll software?
The fee is higher because it covers far more. The comparison only makes sense on the whole picture: fee, benefits, comp, taxes, and hours. That is what the calculator is for.