Glossary · Sales & procurement
Pass-Through Pricing
A PEO billing approach where statutory taxes, benefits premiums, and workers' comp are billed at cost, separate from the administrative fee.
All terms
Entravia Editorial
Pass-through (sometimes called "transparent") pricing separates the administrative fee from the underlying cost of taxes, benefits, and workers' compensation. The client sees and pays the actual cost for each component.
This structure makes it easy for clients to audit charges and benchmark each cost line individually. It is generally preferred by buyers and brokers conducting rigorous side-by-side comparisons.
Related terms
- PEPM (Per Employee Per Month)A pricing model in which a PEO charges a fixed monthly administrative fee per worksite employee, separate from pass-through costs like benefits and taxes.
- All-In (Bundled) PricingA PEO billing approach that combines administrative fees, taxes, and certain benefits into a single bundled rate.
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