PEOIQ

Cost Analysis

PEO Cost Calculator

Enter your headcount to estimate monthly and annual Professional Employer Organization admin fees. This calculator uses our current midpoint estimate per employee. It excludes health benefits and workers’ comp premiums.

Calculate your PEO cost

Move the slider or type your headcount to see estimated monthly and annual admin fees. Results assume a per-employee, per-month pricing model at the current market midpoint.

1100200350500

Uses median midpoint of $147 per employee per month. Excludes health benefits and workers’ comp premiums.

Estimated monthly PEO admin fee

for 25 employees

$3,675/ mo

Estimated annual PEO admin fee

for 25 employees

$44,100/ yr

Based on $147 per employee, per month. See methodology.

These are estimates; actual costs may vary depending on your organization’s size, industry, states, and chosen service package. Request quotes for provider-specific pricing.

Turn this estimate into real quotes for 25 employees

Quotes include admin fees, health benefits, and workers’ comp. No cost. No pressure.

Pricing Drivers

What affects PEO pricing

Admin fees are one number, but providers build that number from several factors. Two companies with the same headcount can see different quotes once these details are considered.

  1. Employee count and growth plans

    Volume discounts kick in at higher headcounts; PEOs often price tiers around 10, 25, 50, and 100 employees. Fast-growing teams can negotiate forward-looking pricing.

  2. Industry and workers’ comp class codes

    High-risk class codes (construction, manufacturing, healthcare) drive up workers’ comp premiums and may increase the admin fee the PEO charges to absorb claims exposure.

  3. Multi-state payroll and SUI rates

    Each additional state adds tax registration, reporting, and compliance overhead. States with high SUI wage bases or complex rules cost more to administer.

  4. Benefits level (medical, dental, vision, 401k)

    Richer benefits packages, multiple medical carriers, or multi-tier plan designs increase enrollment and support work, which is reflected in pricing.

  5. Compliance and HR support scope

    Handbook development, multistate compliance audits, harassment training, and dedicated HR consultants are priced in or added as premium tiers.

  6. Pay cycles and add-ons

    Weekly payroll costs more than bi-weekly. ATS, time clocks, onboarding portals, and LMS are typically add-ons with their own per-employee or per-seat fees.

Market Ranges

Typical PEO pricing (admin fee only)

PEOs bill admin fees in a few common ways. Treat these as directional ranges — competitive quotes are what reveal your actual pricing.

Per employee, per month

$100 – $150

Common range for small-to-mid employers. Our calculator uses $147 as the midpoint.

Per employee, per year

$1,000 – $1,500

Same number, annualized. Easier to line up against salary budgets or total HR spend.

Percent of payroll

2% – 12%

Some providers quote a percentage of total payroll instead of a flat PEPM. Usually better for low-wage, high-headcount teams.

PEOs can reduce HR workload, risk, and sometimes total HR spend for teams of about 10 to 100 employees. Treat these numbers as directional and compare tailored quotes for your situation.

Size Comparison

Example PEO costs by company size

EmployeesEst. Monthly Admin FeeEst. Annual Admin Fee
1$147$1,764
10$1,470$17,640
25$3,675$44,100
50$7,350$88,200
100$14,700$176,400

Estimated PEO admin fees at $147 per employee per month. Benefits premiums and workers’ comp are separate pass-through costs.

Scope

What’s included vs. not included

This estimate covers PEO admin fees only. Your real cost structure also includes pass-through premiums and, in some cases, one-time setup fees.

Included

  • Admin fee estimate (PEPM model)

  • Payroll processing and tax filing

  • HR software platform access

  • Standard compliance and HR advisory

Not included

  • Medical, dental, and vision premiums

  • Employer payroll taxes (FICA, FUTA, SUTA)

  • Workers’ comp premiums

  • One-time setup or transition costs ($500–$2,000 typical)

  • Optional add-ons: ATS, LMS, time clocks, background checks

Some PEOs add one-time setup or onboarding fees (typically $500–$2,000). Review the proposal and contract carefully for minimums, pass-throughs, and any extra fees.

Calculator Logic

Methodology & assumptions

Common Questions

PEO Cost Calculator — FAQs

How accurate is this PEO cost calculator?

It provides a directional estimate using a current midpoint per-employee fee. Real quotes vary by headcount, industry, states, and plan choices.

Do PEOs charge per employee or a percent of payroll?

Both models are used. Many small businesses see per-employee monthly pricing; some providers quote a percent of payroll, typically in the 2%–12% range.

What other costs should I expect besides the admin fee?

Health benefits and workers’ comp premiums, employer payroll taxes, and sometimes one-time setup or transition fees. Add-ons like ATS, LMS, and time clocks may also be priced separately.

Is there a minimum monthly fee?

Some PEOs set minimums or headcount thresholds (often around 5–10 employees). Your quotes will clarify any minimums and whether they apply to your team size.

Can PEO pricing be negotiated?

Often yes, especially with competing quotes and clear plan requirements. Clean census data, payroll exports, and a clear benefits spec give you leverage in negotiation.

What’s the difference between PEPM and percent-of-payroll pricing?

PEPM (per-employee-per-month) is predictable and scales with headcount. Percent-of-payroll scales with wages, which can favor low-wage, high-volume teams but gets expensive as salaries climb.

Get Started

Turn your estimate into real pricing

This calculator gives you a midpoint estimate for typical PEO admin fees. Real quotes can vary based on your industry, states, benefits, and service mix. Rick Huldisch gathers free, no-obligation quotes from vetted PEOs and negotiates on your behalf.

Request Personalized Quotes

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