2023 Justworks Review: Is It the Right PEO for Your Business?
This article is part of a larger series on Payroll Services.
Justworks is a highly affordable, IRS- and Employer Services Assurance Corporation (ESAC)-certified professional employer organization (PEO). As a PEO, it processes your payroll, files and pays your taxes, and manages your benefits. Aside from granting you access to enterprise-level health benefits packages from major insurers, it has HR consultants available to answer your questions and help you stay compliant. It even has time tracking tools and a standalone payroll solution* (PEO services not included) for small businesses with up to 30 workers.
Monthly fees for its PEO solution start at $59 per employee (for the first 49 employees). In our evaluation of the best PEO companies, Justworks earned an overall score of 4.46 out of 5.
*While the payroll services included in Justworks PEO cover all 50 states, its standalone pay processing tool is only available in New York, California, Texas, Florida, Massachusetts, Illinois, New Jersey, Georgia, Ohio, Arizona, Maine, and the District of Columbia (as of this writing).
Overall Score:
4.46 / 5
Pros
- Enterprise-level benefits packages from major health insurance companies
- Justworks-administered 401(k) program
- User-friendly interface with good customer support
- Has IRS, certified PEO (CPEO), and ESAC certifications
Cons
- Medical, dental, vision, health savings account (HSA) and flexible savings account (FSA) are available only in the Plus plan
- Time tracking is a paid add-on
- Paydays must follow preset schedules (every other Friday for nonexempt salaried and hourly workers; every 15th/end of the month for exempt salaried employees)
Who We Recommend Justworks To
Need more info on PEOs? Check out our guide on what a PEO is and how it works.
Justworks Deciding Factors
Supported Business Types | Small to midsized businesses (SMBs) that need an affordably-priced PEO solution |
Free Trial | None |
Pricing |
|
Standout Features |
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Ease of Use | Justworks’ platform is generally easy to learn and use, but having basic knowledge of how to do payroll will be helpful |
Customer Support | 24/7 customer support via phone, email, chat, Slack, and short message service (SMS) |
How Justworks Compares With Top Alternatives
Best For | Starter Monthly Fees | IRS & ESAC Certified | Our Reviews | |
|---|---|---|---|---|
 | Small companies that need a low-cost, high-functioning PEO | $59 per employee | ✓ | |
 | Businesses needing HR and IT management | $65 per employee | ✕ | |
 | Businesses looking for a PEO with robust benefits plans | Call for a quote | ✕ | |
 | Growing companies that want the expertise of a big PEO | $85 per employee* | ✓ | |
*Pricing is based on a quote we received | ||||
If you’ve narrowed your search down to a few payroll providers but still can’t decide, read our guide on choosing the best payroll solution for help.
One refreshing thing about Justworks’ pricing is that it’s fully transparent—you can easily find it on its website. Most PEOs require you to call for a quote. It also doesn’t impose setup fees, instead charging you per employee, unlike other PEOs that charge as a percentage of your payroll. As a result, Justworks got perfect marks for pricing.
It offers two plans (Basic and Plus), with pricing based on the number of employees you have. Its monthly fees also decrease as you reach a 50-employee headcount.
Basic | Plus | |
|---|---|---|
For the First 49 Employees | $59 per employee monthly | $99 per employee monthly |
50 or More Employees | $49 per employee monthly | $89 per employee monthly |
Unlimited Employee, Contractor, and Vendor Payments | ✓ | ✓ |
Payroll Tax Payments and Filings, Including Year-end Reporting | ✓ | ✓ |
Online Onboarding and PTO Management | ✓ | ✓ |
Time Tracking* (via Justworks Hours) | $8 per employee monthly | $8 per employee monthly |
Harassment Prevention and Inclusion Training | ✓ | ✓ |
Workers’ Compensation, Life and Disability Insurance, and 401(k) Plans | With participation fees (Call for a quote) | With participation fees (Call for a quote) |
Fitness Memberships and Health and Wellness Perks | With participation fees (Call for a quote) | With participation fees (Call for a quote) |
Health Advocacy Services, COBRA Administration, and Access to One Medical (as Available) | ✕ | With participation fees (Call for a quote) |
Medical Insurance, HSA, FSA, Dental, and Vision Plans | ✕ | With participation fees (Call for a quote) |
*Justworks Hours is a paid add-on to Justworks PEO and isn’t available as a standalone tool.
Note that Justworks has a two-individual minimum to run payroll. One can be an unpaid owner, and the other must either be an hourly/salaried W-2 employee or a part-time W-2 staff member who works 20 or more hours and receives no less than minimum wage.
For companies with high hiring and turnover rates, Justworks’ plans are flexible enough to handle changes in your employee headcount. The provider will only charge you for the actual number of W-2 employees paid through its system. You can also upgrade or downgrade your subscription by informing Justworks (via Slack, chat, email, or phone) that you want to change your plan a month or more before the date when you’d like to make the switch.
Justworks offers flat-rate pricing if you have part-time employees. You pay only for months that you have active part-timers. Its system is also flexible enough to determine how many part-time and full-time workers you have, enabling it to automatically bill you the applicable rates for both employee types.
Basic ($/Worker/Month) | Plus ($/Worker/Month) | |
|---|---|---|
1–49 Part-time Employees | $59 | $59 |
50 or More Part-time Employees | $49 | $49 |
Note that the provider considers workers as part timers if they are not eligible for benefits and work, on average, fewer than 30 hours weekly. If your part-time employees are tagged as benefits-eligible in Justworks and work, on average, 30 or more hours per week, then they are considered full-time employees. This means that you will be charged Justworks’ regular rates.
Justworks Payroll is the provider’s new pay processing solution, which is a standalone tool for small businesses (with up to 30 minutes) that only have simple payroll needs. For $10 plus $5 per employee monthly, you can process employee and contractor payments, including off-cycle payouts. Onboarding, PTO management, and basic online timecards are also included, as well as an integration option for QuickBooks Online.
However, unlike Justworks PEO, it doesn’t come with benefits plans—although it can handle deductions for 401(k) benefits and more. It also doesn’t offer payroll tax filing services, but you can access tax forms (such as W-2s, 1099s, and state and federal tax returns) directly from its system. Further, as of this writing, Justworks Payroll is only available in New York, California, Massachusetts, Florida, Texas, Illinois, New Jersey, Georgia, Ohio, Arizona, Maine, and the District of Columbia.
Justworks makes managing payroll and benefits easier, enabling you to focus more on growing your business. It got a perfect score for this criterion because it helps prepare year-end tax reports. Its online delivery, flexible payment schedules, and direct deposit option, as well as local and payroll tax handling (which includes calculating and filing them), also contributed to the score.
Justworks can handle different types of payments, from regular payroll to bonus payouts. (Source: Justworks)
Justworks handles both employee and contractor payroll, including vendor payments. You can pay through paper checks, but you have to create and distribute them yourself. It also offers direct deposit payments and even lets your employees split their pay among multiple accounts. Note that if you’re paying via direct deposit, Justworks requires you to approve payroll four days before your designated payday.
In addition to multiple pay frequencies, Justworks supports off-cycle payments and wage garnishments. And in case you receive a garnishment notice, Justworks will process it at no additional charge, but the order must go directly to Justworks and should have its employer identification number (EIN) listed on the notice.
Justworks has a simple online timecard for viewing and editing employee time data. You can choose to have your employees complete the timecards themselves and send this for approval. However, if you’re a QuickBooks Time user, your staff’s actual hours worked can be imported into Justworks.
For seamless integration, consider getting Justworks’ time and attendance solution, Justworks Hours (formerly Boomr). Available as a paid add-on (priced at $8 per user monthly), it comes with overtime alerts, shift scheduling, geo-stamped timekeeping, and mobile apps (for iOS and Android devices) via which your employees can clock in and out.
When Justworks’ employee timecard entry is enabled, your staff can choose to input their hours either on a daily or weekly basis. (Source: Justworks)
Once your company’s vacation and sick leave policies have been set up in Justworks, its system can track accruals and help manage PTO requests by notifying the applicable managers via email of transactions for approval. Managers can also view and approve/disapprove the requests they receive directly through its platform.
If you need to disable PTO policies in Justworks, click the “Disable” button located at the top-right corner of the policy. (Source: Justworks)
Justworks handles all the calculations, filings, and payments for federal, state, and local taxes. Your job, then, is to ensure you give complete and accurate payroll information to Justworks (like cash tips and checks created outside its system).
Justworks got a perfect mark for HR administration tools. It offers all the features you need to manage HR, including onboarding and new hire enrollment, employee self-service portal, compliance issues tracking, and benefits administration. It also provides harassment prevention and inclusion training.
New hire onboarding and employee document management are made easier with Justworks’ HR tools. Incoming employees can complete new hire forms, provide direct deposit details, select health insurance plans, and take compliance training online. Documents like employment contracts and handbooks can be uploaded and stored in Justworks. It even has an electronic signature tool, allowing you to send documents that require e-signatures to approvers and identified signatories.
Employees, on the other hand, can access important documents, from W-2s to company policies, through an online portal. Aside from viewing pay stubs and benefits information, they can request PTO via the portal, and an email will be sent to their manager, who can approve or disapprove the request. Similar functionalities are also available via the Justworks mobile app (for iOS and Android devices). However, you’ll need the mobile app for Justworks Hours to clock in/out—provided you get its time tracking add-on.
Employees can easily request time off from Justworks’ online portal and mobile app. (Source: Justworks)
Justworks monitors changes in state and federal regulations and keeps you in the loop. It offers compliance reports, such as EEO-1, and even has built-in learning programs (powered by EVERFI) to help you stay within the law. This includes access to sexual harassment prevention training that your employees can watch online.
Justworks also provides compliance support for the following:
- New hire reporting
- Unemployment insurance
- Workers’ compensation
- ACA filings (1094-C and 1095-C)
As a PEO, Justworks folds the employees of all its client businesses under its own EIN for the purpose of providing competitive benefits. It can negotiate pricing and deals based on the strength of 70,000 employees rather than an individual company’s five or 20 workers, bringing you better prices and more comprehensive plans. It even manages and takes responsibility for a 401(k) program, making it possible for small businesses to offer this benefit to their employees.
In addition, Justworks lets you create an employee benefits program and choose the insurance plans you want. While you can mix and match plans, its system can detect whether or not the options you selected can be offered together. In case it sees that your plans’ pricing and coverage are too different from each other, Justworks will restrict you from choosing options that are incompatible with those you have already selected.
Justworks offers these benefits:
- Medical, dental, and vision insurance (through Aetna, United HealthCare, and Kaiser)
- HSA and FSA
- Accidental death and disability insurance
- Life insurance
- 401(k) insurance
- Commuter benefits
- Medical advocacy services
- On-demand primary care services and Teladoc services
- Gym memberships
- Health and wellness perks
For employees, they only need to select benefits options during onboarding, and Justworks handles the rest. And while your staff can only change their plans during your company’s annual benefits enrollment period, those with a qualifying life event (QLE), such as marriage, the birth or adoption of a child, and legal separation/divorce, can make updates to their benefits coverage directly in Justworks. However, they need to submit proof of the QLE within 30 days of the event.
Employees can upload and submit proof of their QLE, such as a marriage or birth certificate, in Justworks. (Source: Justworks)
This criterion clearly lowered Jusworks’ overall score. While it offers training for new employees, it doesn’t have a learning management system, plus its time tracking tool costs extra. Justworks also doesn’t offer a recruiting and applicant tracking system.
Justworks got a modest score of 3 out of 5 for this criterion. While it is IRS- and ESAC-certified, it only handles basic payroll and HR reports. Justworks lets users have access to its pre-built reports; however, you can’t request customized reports for your business’ unique needs. Its system does allow you to build a custom payroll report, but the options are very limited—you can only select data and date ranges.
The only thing that prevented Justworks from getting a perfect score for this criterion is the limited features in the mobile app for employers. Most of the app’s functionalities are for employees to access payslips, tax forms, benefits information, and PTO filing tools.
The good thing is that getting started with Justworks is easy. You’ll have an onboarding manager to help you through the process of activating your account, setting up your benefits, and getting your employees on the platform. As part of its PEO services, Justworks helps manage your employee benefits and automatically handles your workers’ compensation, payroll tax filings, and employer practices liability insurance (EPLI).
Here are the top things that make Justworks easy to use:
- Intuitive, easy-to-use interface
- Dedicated onboarding manager
- Access to HR consultants
- Compliance starter guides by state
- In-app help and explainer videos
- Help center with how-to articles
- Benefits management and compliance assistance
- 24/7 support via email, chat, phone, SMS, and Slack
Justworks prides itself on creating software that is educational and useful. So, it’s loaded with links to helpful articles about points of law and compliance, including explanations of terms you or your employees might not be familiar with. It also has an online resource center that offers how-to articles and helpful guides about benefits and state regulations, among others.
Justworks online help center has separate how-to guides for employers and employees. (Source: Justworks)
You are even granted access to certified HR professionals who can provide expert advice and best practices on how to manage your workforce. If you need assistance, Justworks has customer support representatives available 24/7, so you can contact someone in the United States anytime you need help.
We consider Justworks as an excellent PEO company due to its reliability. In our expert review, it received a high score because of its strong HR compliance features, quick implementation, and fuss-free opt-out policy. Plus, its software is easy to learn and explore, even for non-technical users.
What Users Think About Justworks
| Users Like | Users Don’t Like |
|---|---|
| Excellent user interface—attractive and simple | Reports aren’t robust; has limited choices and lacks detailed reports |
| Easy to onboard; little training needed for managers | Time off calculator is too simple |
| Customer service responsive and helpful | Not enough integrations |
Users who left positive Justworks reviews online are satisfied with its system and services. They praised the ease of use of the interface and said that the benefits packages were top-rate, especially for small businesses. Several reviewers also commended its support team for providing good service. Most complaints were about needing more—more types of reports, more integrations, more details, and more tools for specific functions.
At the time of publication, Justworks earned the following scores on popular reviews sites:
- Capterra: 4.7 out of 5 based on more than 190 reviews
- G2: 4.6 out of 5 based on nearly 400 reviews
How We Evaluated Justworks
When we evaluate PEO services, we look for essential HR and payroll tools small businesses need. We also consider pricing, ease of use, customer support, and user feedback. Then, we rated each function on a 5-star scale.
To see our full evaluation criteria, click through the tabs in the box below.
20%
Pricing
20%
HR administration
15%
Payroll features
15%
Ease of use
15%
Expert score
10%
Additional non-payroll tools & software
5%
Licensing & reporting
20% of Overall Score
We looked for providers with transparent pricing, zero setup fees, and charges on a per-employee basis.
20% of Overall Score
We looked for robust HR administrative support, from hiring to retiring, including assistance with employee career development, compliance tracking, and benefits offerings that are available across the US.
15% of Overall Score
We looked for automatic payroll runs, direct deposits, paper check options, W-2 reporting, and payroll tax processing (federal, state, and local taxes).
15% of Overall Score
In addition to having helpful features like how-to guides, dedicated representatives, and customer support options, we looked at user reviews from third-party sites like G2 and Capterra. Then, we averaged the ratings on a 5-star scale, wherein an average of 4+ stars is ideal.
15% of Overall Score
While all the products on our list offer great features, this criterion looked at how well they worked for the needs of small businesses, especially those on a budget.
10% of Overall Score
We checked whether PEOs provide additional HR solutions, such as recruiting, applicant tracking, time and attendance, and learning management tools.
5% of Overall Score
The IRS and the Employer Services Assurance Corporation (ESAC) both certify PEOs for adherence to strict standards and ethical practices, so we checked whether these providers are certified. We also considered customized reports, as these are often for compliance issues.
*Percentages of overall score
Bottom Line
Justworks is an affordable and highly rated PEO for small businesses. Aside from its online solutions that make it easy to onboard employees, it provides HR, benefits, payroll, and compliance support to ensure that you abide by federal and state regulations. Unlike many PEO providers, Justworks has fully transparent pricing with plans that cater to businesses with fewer than 25 employees and those with more than 175 workers.
Sign up for a Justworks plan today and see how its PEO services and cloud-based tools can help streamline your HR and payroll processes.
