Get full-service HR, payroll, benefits for your US employees

A professional employment organization (PEO) is a service provider that handles HR services on behalf of an employer for US workers, including:

• Payroll processing
• Tax administration
• Compliance support
• Onboarding and offboarding
• Employee benefits administration, including health insurance and ACA compliance
• Worker’s compensation coverage and claims
• Candidate screening
• HR policies and employee handbook templates
• Family and medical leave
• Salary and market comparison data

A PEO can be an excellent solution for outsourcing your domestic HR duties. They can relieve your businesses of many HR-related tasks, offer domestic compliance support in all supported states, and save you money. 

When a company engages with a PEO, they enter into a co-employment arrangement. As co-employers, the PEO and client contractually share employer responsibilities and liabilities. Both parties outline the allocation of these responsibilities in a PEO agreement (also known as a PEO client service agreement).

The client company retains ownership and control over its operations, including day-to-day management of employees and product development, marketing, sales, and service. The PEO will typically assume responsibility for administrative tasks, employee records, employee benefits, payroll processing, and employment taxes. 

A PEO is a US-only service that uses a co-employment model and shares compliance liability (as the employer of record for payroll and tax). It delivers full-service outsourcing for HR, compliance, payroll/tax, and employee benefits. Access expert HR guidance and support across all 50 US states to help protect your business from risk and noncompliance.

An EOR solution is available globally, including the US, and assumes full compliance liability. An EOR legally hires employees on your company’s behalf and handles onboarding, HR admin and compliance, payroll, and tax. An EOR doesn’t require a legal entity in the country you’re hiring, while you do need a US legal entity with a PEO.

For more details, check out this PEO vs. EOR comparison.

PEOs will charge an administrative fee for their services, often using one of two pricing structures: a fixed monthly fee per employee, usually around $1,000 per employee annually, or a percentage of your overall payroll, usually 2-11%.

See PEO pricing and get started with a custom quote. Unlike some PEO providers, we provide transparent pricing and no separate fees for platform, payroll and benefits admin access, and more.

No. Outsourcing to a PEO is not about replacing your HR team. Instead, it’s about working collaboratively with your existing team to bolster your HR functions and ensure you meet full regulatory compliance. Your team is probably doing many tasks they don’t need to.

A PEO frees your HR team to concentrate on more in-depth strategic matters that require a deep knowledge of your company and its plans. It’s also important to note that a PEO does not manage staffing or provide employee leasing, as your HR department retains recruitment responsibilities.

When selecting the best PEO provider, it's crucial to consider a few key factors. 

First and foremost, prioritize pricing transparency and opt for a PEO that breaks down costs by line item rather than presenting confusing bundled prices. 

HR support from a PEO is critical in staying compliant. A PEO offering HR generalists and dedicated payroll support ensures faster, direct service compared to PEOs relying on a 1-800 hotline model. At Deel, you can rely on comprehensive HR support from our in-house HR, compliance, and payroll experts.

Evaluate flexibility in working with preferred brokers, as some PEO companies may limit this option. Deel offers you the freedom to choose. You can keep your existing broker and benefits plans, or access our PEO health plans from leading carriers at affordable rates.