PEO pricing, explained before anyone asks for your phone number
PEOs price one of two ways: a flat fee per employee per month, or a percentage of total payroll. Everything else is what sits inside and next to that fee.
The two pricing models
| Per employee per month | Percentage of payroll | |
|---|---|---|
| How it is quoted | A flat monthly amount for each W-2 employee | A percentage applied to gross payroll |
| Predictability | Very predictable; headcount driven | Moves with raises, bonuses, and overtime |
| Tends to favor | Companies with higher average wages | Companies with lower average wages |
| Watch for | What counts as an employee, and minimums | What compensation is included in the base |
Neither model is better in general. Which one favors you is arithmetic on your actual payroll, not opinion.
The fee is only one line of the picture
The full financial picture includes the administrative fee, the benefits premiums, workers' comp, and what the arrangement does to your taxes. Bids that look similar on the fee line can be far apart in total. That is why we built a calculator instead of a brochure.
Common questions
Why will nobody publish a simple price?
Because the honest answer depends on your headcount, wages, states, and benefits elections. Anyone who quotes you a number without those inputs is guessing. We would rather compute it.
Are there setup fees or contracts?
Varies by PEO. Some charge setup, some have annual terms, some are month to month. Contract terms are part of any comparison we put in front of you.
Stop reading ranges. Compute your number.
The calculator runs your real figures. Free, private, takes minutes.