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Different PEO Types to Select From

Different PEO Types to Select FromDifferent PEO Types to Select From
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A professional employer organization (PEO) is an excellent solution for many smaller businesses. Many industries choose to outsource any or all of their HR-related tasks to a professional employer organization or employee leasing service provider. HR outsourcing does not come in one shape or size, however. That is why it is important to know the different options you have. This includes the different types of PEO you can select from.

PEO companies with staff leasing services offer a range of solutions for small and medium-sized businesses. The range of varieties depends on many factors, including your business’ size, needs, service costs, and much more. For this reason, PEO service providers offer a couple of different types to choose from.

Have you ever wondered about the different PEO types you can select from? Have you ever considered how you could know what the best fit for your business is? If the answer to either of these questions is yes, then this article is for you.

Different PEO Types

Businesses can choose to outsource any HR-related tasks. They could also choose to outsource every single task to invest in maximum time-saving. Some of the most important HR-related tasks that PEO service providers can take care of for you include the following:

  • Payroll
  • Taxes
  • Reimbursement claims
  • Worker health benefits
  • Compliance management
  • Hiring policies
  • Interviews
  • Home and auto insurance
  • Integrated technology and software to track time, attendance, and advanced reports
  • And so much more!

In addition to all of the above, PEOs are an excellent way for companies to reduce costs overall. With professionals in the field taking care of highly specialized tasks, there is no need to risk issues with less experienced staff. Once businesses outsource these important tasks to qualified experts in the industry, they can save money that would have been spent on salaries. They can also save time by investing it in more important functions and tasks to grow their business. This is why PEO service providers are specially designed, and are a perfect solution, for smaller businesses.

So, based on the size of your business and the staff, you can select the perfect PEO solution that fits your business best! There are specific types of PEO; however, to choose from. Here are the main three:

Standard/Classic PEO

A standard or classic PEO provides complete and typical employee leasing services for businesses to outsource. This type of PEO is considered a “full-service” co-manager. With this solution, you will be receiving a set of professionals who will be handling and taking care of every single HR-related task for you. This includes payroll, taxes, and so much more.

This solution can also provide your business with much cheaper insurance, benefits, and so on. This is because the PEO system groups all clients into one big group. The prices come out much cheaper once divided communally.

A Classic PEO, or professional employee leasing company, should take care of all of your human resources essentials. That way, you can focus on more important work issues.

Administrative Services Organization (ASO)

While very much like the Classic PEO, an ASO varies in its own way nonetheless. So while an administrative service organization (ASO) also provides your business with a wide selection of HR services and solutions, there are a few exceptions and limitations to their services.

An ASO can provide most benefits that a classic or standard PEO does, except for some specific tax-related and insurance tasks. They also do not shoulder any liabilities when it comes to employment.

Regarding taxes, an ASO can organize and do your taxes for your business just fine. However, it will be filed beneath your own Employer Identification Number. So, when you collaborate with an administrative service organization, your business must preserve all rights

Human Resources Outsourcing Organization (HRO)

Lastly, a human resources outsourcing organization (HRO) can give your business the utmost basic, and most important, HR solutions. So, instead of hiring a group of people to do these basic tasks, and paying each of them a salary, many small businesses choose to outsource with an HRO and save themselves much money. Some of these technical tasks include:

  • Time and attendance tracking
  • Employee benefits management
  • Open enrollment organization
  • Payroll management

These tasks are definitely important but very time-consuming and sometimes tiring to do. So, by outsourcing with an HRO to take care of these tasks, you can reach the excellent work productivity of an experienced, whole Human Resources team for only a small percentage of the price of actually hiring one.

Therefore, though all PEOs can give you really good benefits for your business, it is essential you know what your company specifically needs. Ask yourself, what are you trying to achieve by outsourcing, and just to what extent, so that you may discover the perfect solution for your business.

If you are interested in some more of the benefits of PEO in general and are curious to know how it can overall help your business, then keep reading.

Benefits of PEO

As can be seen from above, it is not easy choosing one PEO for your business. Many businesses may end up overwhelmed and think that they do not need to outsource. However, we are here to tell you that your business can only benefit from PEO outsourcing. Here are some of the many ways your business can benefit from PEO solutions:

  • Less Paperwork
  • Removing Payroll Hassle
  • HR Solutions and Tools
  • Task Automation
  • Compliance
  • Training for Your Current HR Team
  • Increasing Profitability
  • Higher Employee Productivity
  • Much Fewer Liabilities
  • Reducing Costs
  • Risk Management

Recommended PEO Providers

To save you an immense amount of time searching through countless PEO service providers in the country, we have put together a list of some of the best PEO options for you to choose from. We have made it easier for you by fully reviewing all three of these recommendations so that you only have to choose the one that suits you best.

1. Paychex

Paychex is an industry-leading payroll software system. It also offers excellent PEO services and solutions to businesses of all sizes. As a professional employer organization, Paychex can provide you with some professional HR guidance, as well as 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

Paychex PEO does not advertise its prices online. Instead, you will have to contact them to request a quote. This quote-based system is based on your business's size and requirements.

With that being said, the plans for its payroll software are advertised online. This is included as a part of their PEO services. Their payroll software plans are as follows:

  • 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.


Coming in second place on our list of recommendations, we present you with BBSI. It is an ESAC accredited professional employer organization. This means their standards are very high and you will be receiving excellent services with them. BBSI can provide you with a selection of inclusive services, some of which include:

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

BBSI also provides custom-based quotes for businesses. You can contact their team by calling at 1-800-494-5669 or by completing an online form on their Contact Us page on their website.

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

3. Justworks

Last, but not least, on our list of best PEO company recommendations, we give you Justworks! Justworks also can be used as a separate payroll software provider. However, they also provide multifunctional PEO services as well. Some of their PEO services and solutions include the following:

  • Hiring and onboarding for remote teams
  • Automation and employee self-service
  • Payroll and taxes
  • Benefits administration
  • Software integrations
  • Contractor payment
  • Employment Practices Liability Insurance

Justworks has flexible prices and plans for each business based on the number of employees and so on. The plans they offer you are excellent for small businesses. Their plans are as follows:

  • Basic plan: starts at $44/month/employee

This plan comes with Payroll services, Benefits, HR tools, and Compliance.

  • Plus plan: starts at $89/month/employee

This plan packs everything in the Basic plan, plus access to Medical, Dental, and Vision health insurance plans.


Read our full Justworks PEO review to know more about what it can offer your business.

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