Buyer Guide
How Much Does a PEO Cost?
There's no single answer — and any source that gives you one is guessing. PEO cost is the sum of five line items, each priced differently across providers. This guide explains every line, then sends you to a per-user estimator.
Why we don't publish an average
A national average mixes a 5-person tech firm in Austin with a 200-person construction company in California. Class codes alone produce 10x cost spreads on the workers' comp line. Publishing one number harms buyers and we won't do it. Instead, here is what's actually being priced.
The five line items
- Admin fee. The PEO's service fee, billed PEPM (per employee per month) or as a percentage of payroll.
- Medical & ancillary benefits. Premium load for the master plan tier you select, split between employer and employee.
- Workers' compensation. Class-code-based rate × payroll, with experience modifier and any state-specific surcharges.
- EPLI. Often bundled at no extra line, sometimes broken out — depends on the PEO.
- SUI / SUTA. Either pass-through (your real rate) or blended (PEO's rate). The structure matters more than the number.
PEPM vs. percent of payroll
PEPM gives you a predictable line per employee. Percent-of-payroll scales with wages, which can be cheaper for low-wage workforces and more expensive for high-wage ones. Always ask both PEOs to quote both ways so you can compare apples to apples.
What's a typical admin fee range?
Are PEO benefits cheaper than buying direct?
Get a per-user estimate with the PEO Cost Estimator, then compare real quotes side by side via Entravia's structured intake.
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