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How to Pick the Right PEO Company

How to Pick the Right PEO CompanyHow to Pick the Right PEO Company

With hundreds if not thousands of PEO companies in the industry, choosing one to work with can be an overwhelming decision and should not be a blind one either. Your business deserves a PEO company that will live up to its reputation and exceed your expectations with the services it promises to provide. The right PEO company will be critical to your business's growth and survival in the market. You should consider a few factors that will help you narrow down your options and find the best PEO for your business.

Factors to Consider

1. PEO company's credentials

It is best advised to research your PEO company's credentials before hiring them because you will need an experienced company with a team of dedicated and highly experienced professionals that are known to deliver on their services and promises.

There are some certifications you should look out for that ensure PEOs' level of service and trust. Such certifications include the Employer Services Assurance Corporation (ESAC) accreditation, which is the gold standard for PEO best practices and financial reliability. Only nine percent out of the countless PEO companies have earned their ESAC accreditation.

Another stamp of trust a PEO can have is being a member of The National Association of Professional Employer Organizations (NAPEO). NAPEO members have access to the best regulatory compliance database in the industry and justify their credentials in the industry.

Lastly, check whether your chosen PEO is certified by the International Revenue Service (IRS). This certification confirms the PEO's ability to pay federal employment taxes under its Employer Identification Number (EIN).

The best PEO will have earned all the above certifications.

2. PEO's level of experience

Next up, you should check your PEO company's level of experience. We recommend you research:

  • How many years has it been in business?
  • How long do its clients stay with it?
  • Its client testimonials or case studies

A PEO's client stories and case studies can be a great way to help you know its level of experience and what to expect from working with it.

3. PEOs' service delivery

Many PEO clients complain about the way their PEO delivers its services. You should look into how your PEO would deliver its services to your business. Will it assign you a dedicated team of professionals? Will they help you build a development strategy? Will they always be available to call or reach by phone? Is there a service level agreement (SLA)?

You deserve a PEO company that takes its clients seriously and provides them with all they need when they need it.

4. PEOs offered technology

A PEOs service should not be limited to only personal guidance and professionals; it should also include technological solutions that its clients would not be able to acquire otherwise. The best PEO companies usually accompany software solutions to their services, and such software can include:

  • Payroll software
  • HR Software
  • Accounting software
  • Time and attendance software
  • Benefits administration software

A good PEO company hides nothing and presents its potential clients with everything it offers. So be sure to request a live demo of their offered software to see for yourself how it all functions.

5. PEO's benefits and insurance

The way PEOs offer benefits services and benefits administration can provide you with better insurance plans. The best PEOs in the industry are partnered with the top insurance carriers, which helps them provide small to medium-sized business benefit plans at relatively lower costs. Be sure to know whether your chosen PEO changes their carriers frequently if they change their plans frequently, and how well do they administer benefits enrollments.

After taking all these factors into consideration, you should be able to narrow down your PEO choices, so you can pick the best one.

To help you narrow it down even further, we have done all the heavy research and will present you with our top three recommendations for the best PEO companies in the industry.

Top PEO Recommendations

1. Paychex

Paychex is a giant payroll software provider that offers multi-functional solutions for HR functions, taxes, and payroll. Additionally, Paychex offers a comprehensive set of PEO services for businesses of any kind and size; its services include the following:

  • Payroll Processing
  • Employee Benefits and Administration
  • HR Services
  • Time and Attendance
  • Business Insurance
  • Learning Management System and Training
  • Risk Management
  • Employee Performance Management

In addition to its PEO services, Paychex will also provide you with its payroll software. Paychex does not advertise any prices for its PEO services as it will customize you a unique quote depending on your business needs. As for its payroll software, it comes with three plans:

Paychex Flex Essentials - $39/month, + $5 per employee

Paychex Flex Select – Quote-based

Paychex Flex Pro – Quote-based

Each plan comes with a set of features and capabilities; read our full Paychex payroll review to know more about its features.

Read our full Paychex PEO review to know more about their employee-leasing services.


BBSI is our second PEO recommendation. It is one of the most highly rated PEO companies that earned its ESAC, IRS, and NAPEO accreditations. BBSI will transform your business with its PEO services, some of which include the following:

  • Business Strategy Development
  • Human Resources
  • Payroll Administration
  • Retirement Benefits
  • Risk and Safety
  • Staffing and Recruiting
  • Technology Solutions
  • Workers' Compensation

BBSI will tailor its PEO pricing to your business' needs and size, so you need only reach out to their team at 1-800-494-5669 to get started.

Read our full BBSI review to know more about its employee-leasing services.

3. ADP TotalSource

Lastly, for our third recommendation, we present you with ADP TotalSource. ADP is a best-in-class PEO giant that services over 500,000 employees nationwide. It will provide you with the most inclusive outsourcing services for your business; such services include:

  • Payroll
  • Time and attendance
  • Benefits and Insurance
  • HR Services
  • Workplace safety
  • Compliance
  • Talent acquisition

Similarly, ADP will customize its PEO prices to your business size and needs. You can reach their team by live chat on their official website or by phone at 800-447-3237.

Read our full ADP review to know more.

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