8 Best PEOs for Small Businesses in 2025: Pros, Cons, and Costs

Businesses often face challenges in managing HR, payroll, and compliance alongside multiple competing priorities and limited resources. This is especially true for small companies, which are typically focused on product and sales, struggle to compete for talent against larger employers, and cannot sustain a dedicated people operations team.

One possible solution is to partner with a professional employer organization (PEO)—a co-employment model for outsourcing time-consuming admin and back-office functions, mitigating liabilities, and accessing more competitive employee benefits. A 2024 white paper by the National Association of Professional Employer Organizations (NAPEO) found that PEO services boost growth and employee retention, halving the risk of closure.

But with multiple providers on the market, each with its own distinct service offering and pricing, how can employers identify the best solution for their specific needs? This article compares some of the most popular options for small businesses in 2025, including strengths and weaknesses, pricing, and what might make a specific PEO a good choice for you.

Pros and cons of using a PEO for a small business

As a small business owner, you might be weighing your options on whether or not to co-partner with a PEO. While PEOs can involve upfront costs and commitments, they also offer long-term savings, access to better benefits, and a minimized back-office workload—among other advantages.

Consider the following factors in your decision-making:

Pros

Entering into a co-employment arrangement with a PEO typically includes the following advantages:

• Outsourced HR and administrative burdens, including benefits enrollment, management, and employee support
• Streamlined tax and payroll processing across various jurisdictions
• Reduced compliance risks and legal exposure
• Simplified hiring, onboarding, and offboarding processes
• Access to enterprise-level benefits at large-group rates

Cons

There are several potential limitations that clients should consider when exploring PEO as an option:

• Reduced direct control over certain HR functions, as these are typically shifted under the PEO’s standardized processes
• Potential misalignment of values or practices if the selected PEO is not a strong fit for your company’s culture or needs
• Variation in service scope across providers and, in some cases, hidden costs for certain solutions
• Long-term co-employment contracts that might include penalties for early termination, meaning employers need to be careful when choosing their carrier

When should you consider partnering with a PEO?

There are several scenarios where a PEO might be a suitable option:

• Your in-house team is spending too much time managing day-to-day HR, payroll, and benefits admin
• You are hiring across multiple states and require help navigating the different labor laws and regulations
• You are an international company, looking to enter the US market
• You are interested in boosting your competitive edge in the talent market by enhancing your benefits package
• You are looking to minimize risk and legal liability so you can focus on core operations
• You are preparing to scale quickly or adopt a remote working model

Unsure if a PEO is the right choice for you? Read our ASO vs. PEO piece, including a checklist that compares these two HR outsourcing models.

Best PEOs for small businesses (2025 roundup)

Different PEO providers have different strengths and offerings. When choosing the right one for your business, you need to carefully consider your priorities, strategic goals, and budget. Here are eight leading options to explore in 2025:

1. Deel PEO

Deel is a global people platform, offering hiring, payroll, HR, and compliance solutions to more than 35,000 businesses worldwide. Deel PEO runs on an entirely in-house infrastructure with licensed experts and comprehensive support for all 50 US states. Our platform is designed to integrate easily with your existing tools and offers streamlined workflows with built-in compliance.

Key features

• A unified platform, equipped with all the necessary tools to hire, pay, and manage remote, hybrid, and office-based teams across different states
• Tax and payroll management for different types of workers (full-time, contractors, exempt or non-exempt, etc.)
• Full compliance coverage at the federal, state, and local levels, including continuous monitoring of evolving regulations
• An AI-powered assistant that provides you with tailored HR and legal insights to support better decision-making
• Comprehensive PTO and expense tracking, all in one place
• Automated onboarding, offboarding, and training for employees across all locations
• Instant and customizable report generation, including payroll, growth, and retention analytics
• End-to-end document workflows for the full employment lifecycle—from contracts, new hire reporting, and termination paperwork, to severance and unemployment claims
• 60+ benefit plans offering Fortune 500-level coverage at a fraction of the cost

Pros and cons

Advantages:

• Fully in-house expert support, without reliance on third parties or external vendors
• Proprietary infrastructure ensuring complete oversight of all data, operations, and compliance
• Part of Deel's all-in-one platform, combining payroll, HR, IT, immigration, and workforce management across the US and internationally
• Empowers businesses of all sizes, from fast-growing start-ups to large organizations
• In-house solutions for seamless and compliant global hiring
• Exclusive access to Aetna International benefits plans
• 24/7 customer support, regardless of your location
• Transparent pricing, with no hidden fees

Don’t have a local entity? Deel EOR—our Employer of Record (EOR) service—lets you hire international talent without the time, cost, or complexity of setting up legal entities. It’s a fast, compliant way to grow your team across borders, with no infrastructure required.

Considerations:

• Deel’s feature-rich platform may require time for clients to get fully up to speed
• The pricing model is set per employee and can require careful budgeting for a large workforce

Pricing

• Starts at $95 per employee/month

Deel customer reviews

4.8 rating (G2) based on 8,800+ reviews

Best for

Companies of all sizes, whether US-based or international. Deel’s comprehensive services and all-in-one platform simplify every aspect of the HR, tax, and payroll processes. With our in-house legal experts and built-in compliance tools, you can hire and manage your workers globally or domestically, while we take care of the legal work.

2. Justworks

Justworks is an international company headquartered in New York, with offices in several other locations around the world. Its PEO product specializes in helping small and medium-sized businesses by providing HR, payroll, compliance, and admin services through a modern, unified platform. In 2025, its US client base reached as many as 12,000 small businesses.

Key features

• A platform for all HR, benefits, payroll, and compliance tasks
• Automated payroll and tax processes that sync with worked hours, overtime, and compensation data
• A single documentation and personnel information hub
• Financial and compliance support
• Streamlined hiring and onboarding processes for growing teams
• Large-company benefit options at affordable prices
• Insight reports that assist in strategy and decision-making

Pros and cons

Advantages:

• Tiered service packages that provide different scopes of service
• 24/7 customer support
• Optional EOR service for hiring internationally
• Low medical insurance rates in the first year of service

Unsure about the difference between a PEO and an EOR? Explore our comparison guide to learn when to use each.

Disadvantages:

• Contract payments through the platform are limited to about 30 countries
• Some limitations in the HR support (such as Family and Medical Leave Act (FMLA))
• The basic plan lacks some core expected features related to benefits, employment practices liability insurance (EPLI), and admin
• Payroll reporting customization is limited to a handful of filters
• Time-tracking is a paid add-on, billed separately from the core services
• Costs can rise significantly for larger teams, particularly as medical insurance rates tend to jump after the first year
• Their EOR is limited to only a small number of countries, with the remaining ones covered by a third party

Pricing

• The base plan includes a $50 monthly fee plus $8 per employee/month, PEO Basic at $79 per employee/month, and PEO Plus at $109 per employee/month

Justworks customer reviews

4.6 rating (G2) based on 1,100+ reviews

Best for

Ideal for startups that want flexible outsourcing options without upfront commitment. Also valuable for small to mid-sized businesses seeking intuitive HR, compliance, and admin support while focusing on growth.

3. ExtensisHR

Since 1997, ExtensisHR has provided PEO services for small and scaling businesses. Today, it is one of the fastest-growing PEOs in the US. With the rise of remote work and cross-border hiring, their offering has evolved to include solutions that cater to distributed teams.

Key features

• Two PEO bundles—standard and “premier”—providing clients with different levels of support
• Single-platform solution for HR, payroll, benefits, and risk management
• Tax filing, admin, and compliance services across different states
• Employee self-service portal that enables access to payment records, PTO balance, and benefits enrollment
• Employee benefits packages
• Integrated cloud-based learning and development for employees
• Talent acquisition and retention support

Pros and cons

Advantages:

• Well set up to support remote and hybrid teams
• A designated support team for each client, providing HR support and guidance
• An in-house EOR solution allowing businesses to expand globally
• Focus on employee satisfaction, through benefits options, and learning and development opportunities

Disadvantages:

• Less suitable for handling the more complex demands of larger organizations
• Non-transparent costs
• No clear, side-by-side comparison of the features available in the different pricing tiers

Pricing

• Quote-based pricing, generally regarded as affordable for small businesses

ExtensisHR customer reviews

4.6 rating (G2) based on 50 reviews

Best for

Startups and small, fast-growing businesses that are seeking to outsource their HR, compliance, and payroll functions, especially those managing distributed or hybrid teams.

4. TriNet

TriNet is a prominent PEO provider with eight offices across the US and approximately 20,000 clients as of December 2024. They provide services for small and mid-sized businesses nationwide.

Key features

• An HR service bundle that includes payroll processing, benefits management, talent acquisition, and onboarding
• Compliance support for handling federal, state, and local tax laws
• Access to a network of large-group benefits packages
• Time-tracking feature that feeds into the payroll systems
• Talent and workforce consulting for improving employment structures and engagement
• Self-service portal for managing employee benefits, PTO, and pay stubs
• EPLI coverage managed by an internal team

Pros and cons

Advantages:

• Extensive benefits and legal support
• Industry-specific compliance consulting services
• A platform that integrates easily with your existing HR tools

Disadvantages:

• Some clients have found the interface and onboarding process to feel less modern than other alternatives
• Generally pricier than other PEOs on the market, making it potentially prohibitive for some businesses
• No in-house solutions for international hiring
• Customer support can require initial engagement through bots or scripts before reaching a representative
• Some clients report delays in reaching account representatives due to the size of the company

Pricing

• Custom pricing available only through direct consultation

TriNet customer reviews

4.0 rating (G2) based on 700+ reviews

Best for

Small and mid-sized businesses, especially those interested in specialized industry guidance. Well-suited for organizations with complex or rapidly evolving needs.

5. Sequoia One

Sequoia One is a US-focused PEO that launched in 2001 in Silicon Valley as a one-employee, one-client business. Since then, it has expanded nationwide, providing services to venture-backed startups and fast-growing companies, particularly in the tech sector. Today, Sequoia One supports more than 2,200 corporate clients.

Key features

• Outsourced HR, payroll, and tax management services
• Platform combines HR functions, compliance tools, and an employee self-service portal
• Compensation planning, management, and road mapping features aimed at supporting strategy
• Access to enterprise-level benefits
• Risk mitigation and compliance services optimized for hybrid work environments
• Customizable reporting and analytics

Pros and cons

Advantages:

• Expertise in the startup space
• Tools that support a holistic approach to leadership, with an emphasis on transparency and data-informed engagement
• Five dedicated consultants per client, providing custom benefits, HR, and payroll support
• Support for clients who want to transition from the PEO model to in-house HR teams using the Sequoia People Platform

Disadvantages:

• Not well-suited for handling the more complex needs of larger organizations
• No in-house options for global hiring—relies on an external partner instead
• Pricing is not publicly listed on the website
• Some users report that the interface feels outdated compared to newer platforms
• Limited number of verified customer reviews available online

Pricing

• Custom quotes are available through a demo or a meeting with a consultant

Sequoia One customer reviews

4.0 rating (G2) based on 8 reviews

Best for

Rapidly growing, venture-backed startups, particularly those in the tech industry who are seeking a partner that understands their specific challenges and aggressive growth goals.

6. Insperity

Insperity is a large PEO provider, with over 100 offices nationwide and more than 100,000 clients. It offers two key bundles—its HRCore option, delivering HR services without a co-employment relationship, and HR360, its full-service PEO package (discussed below).

Key features

• HR and payroll services covering businesses’ admin needs, workforce management, and end-to-end compensation processing
• Tax filing and record-keeping in compliance with federal, state, and local tax laws
• A cloud-based platform that unifies all data, reports, and workforce insights
• Recruitment support, tracking, and employee life cycle support
• Employee portal for managing PTO, benefits, hours, and pay stubs
• Competitive benefit packages for employees
• Risk management and optional EPLI coverage
• An e-library with skills development resources

Pros and cons

Advantages:

• Dedicated support team for HR and compliance guidance for each client
• Broad and comprehensive PEO offering
• Tools for enhancing employee engagement and career development

Disadvantages:

• More expensive than other options on the market
• No transparent pricing on the website, with some services incurring additional or undisclosed charges
• The bundled service model offers limited flexibility and may not be ideal for businesses with smaller budgets or those with more unique needs
• The payroll interface may not feel intuitive, requiring an initial learning curve for clients
• No products supporting international hiring

Pricing

• Custom quote based on various factors

Insperity customer reviews

3.8 rating (G2) based on 60+ reviews

Best for

Companies of all sizes—especially those new to HR operations—that want hands-on, comprehensive support.

7. VensureHR

VensureHR is a fast-growing HR solutions provider that has expanded rapidly through dozens of acquisitions since 2018. It currently serves 11,000 businesses and has several offices across the US.

Key features

• HR, payroll, and benefits administration that is well-suited for supporting a remote workforce
• Recruitment assistance, including scoping, screening, hiring, and onboarding candidates
• Mobile-enabled access to benefits, PTO, and payroll information for employees across all locations
• Risk management support, including assistance with safety assessments, training, workers’ compensation, and EPLI solutions
• Easily integrates with accounting software to simplify back-office processes

Pros and cons

Advantages:

• Dedicated payroll specialist for each client
• Benefits marketplace with broad voluntary benefits options
• Generally considered affordable among other providers
• Expert support for navigating workforce and industry-specific challenges

Disadvantages:

• Limited client reviews available online despite the size and tenure of the company
• Some clients report delays or inefficiencies in customer support response times
• Pricing is not publicly disclosed

Pricing

• Custom-based, but considered affordable

VensureHR customer reviews

3.7 rating (G2) based on 30+ reviews

Best for

Small and mid-sized businesses looking for comprehensive HR, admin, and risk mitigation support, along with a wide range of customizable benefits options.

8. CoAdvantage PEO

CoAdvantage PEO specializes in US-based businesses. It offers HR, payroll, and admin services to over 4,500 clients across all 50 states.

Key features

• Outsourced payroll, tax filing, and benefits administration
• Risk management support for minimizing exposure and handling claims and disputes
• A self-service HR platform for managing employees, tracking processes, and exporting reports
• Tools and resources for improved employee engagement, including online training and mentorship programs
• Dedicated HR consulting aimed at boosting employee retention
• Access to benefits packages, including 401(k) retirement plans and various health insurance options

New to managing benefits in the US? Read our guide on choosing a PEO for health insurance.

Pros and cons

Advantages:

• Focus on the employee experience, including benefits selection, skill development, and learning opportunities
• A network of dedicated regional representatives in locations nationwide
• Dedicated customer support
• Generally, more cost-effective compared to other providers

Disadvantages:

• Geared toward small and medium-sized businesses, and may not scale well as organizations grow
• Limited capacity to support international teams outside the US
• Some services might incur additional charges
• Limited verified customer reviews, making service quality difficult to assess

Pricing

• Custom pricing—requires a quote depending on the number of employees

CoAdvantage customer reviews

3.5 rating (G2) based on 5 reviews

Best for

Small to mid-sized businesses looking for cost-effective, hands-on HR support within the US, especially if operating in multiple states.

Key questions checklist for prospective PEO providers

Understanding what each prospective PEO provider offers can be challenging. To help you make an informed decision, we've compiled a set of questions that you can raise when consulting different advisors and representatives.

Find out how Deel's services stack up against other providers with this side-by-side comparison.

Unlock seamless HR, payroll, and compliance solutions with Deel PEO

Each business is unique, with its own specific pain points, goals, and operational needs. This is why finding a trusted co-employment partner—one that understands your challenges and adapts to your growth—is so important.

Deel PEO offers full in-house support at every level of service, with an emphasis on transparency, dedicated customer care, and industry-leading innovation. Our solution is built to scale with your team, whether remote, hybrid, or office-based, handling tax and payroll at the federal, state, and local levels.

Transform your workflows and save time and resources by outsourcing your HR and administrative functions. With our integrated platform, you can streamline back-office processes, optimize record-keeping, and manage your workforce in one centralized place, with clear pricing and no hidden costs.

Learn how Superfiliate accelerated its expansion with Deel's suite of PEO, global, and US-centric payroll services.

Book a demo today to see Deel’s services in action.