Cost of ADP Total Source
I am looking at PEO service. Roughly I need to pay $125-$150 for PEO services. What is this dollar amount for?
Using a PEO results in having someone else (PEO) manage your new hire onboarding, ensure new hire paperwork is turned in, process employee payroll, manage employee benefits (if you offer them), process termination paperwork, maintain required documentation, pay your state and federal payroll taxes (as well as the employee’s) and otherwise serve as the HR/payroll/compliance arm of your business. Many smaller firms go this route for a few reasons:
1) they can often save on work comp premiums due to a larger pool of employees managed by the PEO
2) they can provide big-company benefit offerings to even the smallest of employers
3) they save money over paying to hire a full-time HR manager
Here’s an article explaining how a PEO works.
Here an article where we share our recommendations (along with pricing comparisons) for a small business PEO.
Consider self-service payroll software, like Gusto or HR software like Zenefits as a much lower cost alternative.
Best of luck with your choice!
Laura, Sr HR Staff Writer