PEO - Employee Leasing

We regularly survey BuyerZone users to ask about their purchasing experience and find out how much they paid for their purchase. Here's a collection of quotes from PEO buyers that can give you an idea of how much you'd pay to outsource some human resources functions.

Remember that professional employee organizations take over the whole HR function for your company, to the point where they are the legal employer of your staff. The main advantage of that setup is that the PEO assumes all the legal risks and obligations of hiring and firing.

You'll find that PEOs usually price their services on a per-employee basis - either as a flat rate or a percentage - plus a startup fee. Choosing to go the PEO route is more common among startups and very small businesses, so we've separated the responses below into companies with fewer than 5 employees and those with more than 10.

• PEO pricing examples for fewer than 5 employees
• PEO pricing examples for more than 10 employees

PEO pricing examples for fewer than 5 employees

• "$70 per paycheck. Services include payroll and human resources services. We had hired a repairman for the past 3 years through another company. That company is going out of business and we wanted to hire the repairman as an employee of our homeowners association. His work will include maintenance of the exterior of our buildings, our sprinkler system, and our landscape lighting." - Home owners' association, San Francisco, California
• "15% of payroll to have all employees leased." - Education, Newton, New Jersey
• "$45 per pay period. Included payroll, FL new hire reporting, tax filing. I own a summer day camp and will have one employee this summer. We are seasonal and run for nine weeks. We are now providing Workman's Comp insurance for this employee. WC was $200 minimum policy then 0.48 percent. " - Business Services, Sarasota, Florida
• "No contract, will work with startup companies with a few employees. Charged $70 per month for payroll and related taxes for two employees. Will cover benefit options, payroll services and handling tax deposits." - Insurance, Cabot, Arkansas
• "20.32% covers worker's comp, payroll, & taxes." - Business Services, Kingston, Tennessee
• "12.5% of payroll, full service for new startup." - Business Services, Kannapolis, North Carolina
• "$600 per employee per year for HR outsourcing and Payroll." - Information Services, Emerville, California

back to top

PEO pricing examples for more than 10 employees

• "$173.25 per month for online timekeeper. A portion of our staff is covered under a union contract." - Credit union, Las Vegas, Nevada
• "ASO services for $400 per week." - Manufacturing, Detroit, Michigan
• "Approximately $100/month/employee in fees. We have a professional well paid staff and need a first class benefits package to compete for employees. I was previously with a PEO who limited the Health Insurance options to ones my employees didn't like. " - Manufacturer, Round Rock, Texas
• "$122.22 per employee per month, $3,000 set up fee." - Consulting, Somerset, New Jersey

back to top

Want more information on choosing a PEO? Read our PEO Buyer's Guide.

Information was provided by BuyerZone users. Quotes have been edited for clarity only.