Professional Employer Organizations (PEOs) provide valuable HR services, but understanding their cost structure is essential for budgeting. Our PEO Cost Calculator simplifies this process, giving businesses instant estimates of potential administration fees.

PEOs typically charge through two main fee structures: a percentage of payroll (usually 2-4%) and a per-employee fee (50−50−200 monthly). These costs cover services like payroll processing, benefits administration, compliance management, and workers’ compensation. The exact pricing depends on your employee count, payroll size, and the service level you require.

Using a PEO cost calculator helps businesses:

1. Compare PEO pricing models quickly
2. Budget for HR outsourcing expenses
3. Evaluate cost-effectiveness versus in-house HR
4. Negotiate better terms with PEO providers

Our calculator considers all critical variables – employee numbers, monthly payroll, and service tier – to provide accurate estimates. Small businesses often find that PEO services become more cost-effective as they grow, with per-employee costs typically decreasing at higher employee counts.

Remember that while cost is important, it shouldn’t be your only consideration when selecting a PEO. Service quality, industry expertise, and technology platforms are equally crucial factors. Many businesses find that the time savings and reduced compliance risk justify the PEO administration fees.

Try our calculator today to get personalized estimates for your organization. Simply input your employee count, payroll amount, and desired service level to see potential monthly costs. This transparent approach helps you make informed decisions about HR outsourcing without any obligation.