Best PEO Services for Small Business (2026)
A PEO (Professional Employer Organisation) handles HR, payroll, benefits, and compliance for your company. Unlike HR software, a PEO becomes your co-employer and gives small businesses access to enterprise-grade benefits at group rates. These are the best PEO and HR outsourcing options for small US businesses.
Last updated: March 2026. Based on verified features, pricing, and user ratings.
| # | Tool | Rating | Starting Price | Free Plan | Free Trial | Best For | |
|---|---|---|---|---|---|---|---|
| 1 |
OnPay
Straightforward cloud payroll solution for small businesses with full-service payroll, automatic tax filing, HR tools,... |
4.8/5 | $40/mo | No | Yes | SMB | Visit → |
| 2 |
Gusto
Cloud-based payroll and HR platform for small businesses handling payroll processing, benefits administration, time tracking,... |
4.5/5 | $40/mo | No | No | SMB | Visit → |
| 3 |
HiBob
Modern HRIS (Bob) designed for mid-sized and fast-growing companies, with strong culture and engagement tools,... |
4.5/5 | N/A | No | No | Mid-Market | Visit → |
| 4 |
Paychex
Payroll and HR outsourcing provider for small to mid-sized businesses, offering payroll processing, retirement plans,... |
4.2/5 | $39/mo | No | No | SMB | Visit → |
| 5 |
Zenefits
HR platform for small and mid-sized businesses covering onboarding, benefits administration, payroll, time-and-attendance, and compliance.... |
4.0/5 | $8/mo | No | No | SMB | Visit → |
| 6 |
Namely
HR platform for mid-sized companies providing HRIS, payroll, benefits administration, talent management, and time-and-attendance in... |
3.9/5 | N/A | No | No | Mid-Market | Visit → |
How we chose these tools
Tools are ranked by overall rating, which combines user reviews from G2 and Capterra with our assessment of features, pricing, and ease of use. We only include tools with verified data. Pricing and features are checked against official sources. Learn more about our methodology.
1. OnPay
Straightforward cloud payroll solution for small businesses with full-service payroll, automatic tax filing, HR tools, and benefits administration at a simple flat-rate monthly price.
2. Gusto
Cloud-based payroll and HR platform for small businesses handling payroll processing, benefits administration, time tracking, hiring, and compliance in one system.
3. HiBob
Modern HRIS (Bob) designed for mid-sized and fast-growing companies, with strong culture and engagement tools, workforce planning, compensation management, and people analytics.
4. Paychex
Payroll and HR outsourcing provider for small to mid-sized businesses, offering payroll processing, retirement plans, insurance, and HR advisory services with dedicated support.
5. Zenefits
HR platform for small and mid-sized businesses covering onboarding, benefits administration, payroll, time-and-attendance, and compliance. Now part of TriNet.
6. Namely
HR platform for mid-sized companies providing HRIS, payroll, benefits administration, talent management, and time-and-attendance in a single system with managed services.
How we evaluate tools
Our ratings combine verified user reviews from G2 and Capterra with hands-on feature analysis. Pricing is checked against official sources. We may earn a commission through affiliate links, but this never influences our rankings or recommendations. Read our full methodology.
Frequently Asked Questions
What is a PEO?
A PEO (Professional Employer Organisation) is a company that co-employs your team. They take over payroll, benefits administration, workers' compensation, and regulatory compliance. You retain control of day-to-day management and hiring decisions. The co-employment model gives small businesses access to benefits packages normally available only to large employers.
How much does a PEO cost?
PEO pricing typically ranges from $59-$150 per employee per month. Justworks starts at $59/employee for basic payroll and compliance, rising to $109/employee with benefits. TriNet charges $80-$150/employee depending on services. Factor in that PEO benefits costs are often lower than what you'd pay independently.
PEO vs DIY HR software — which is better?
PEOs are better for small businesses (5-200 employees) that want HR outsourced and big-company benefits. DIY HR software (Gusto, Rippling, BambooHR) is better if you want control, lower costs, and are comfortable managing HR processes yourself. PEOs cost more per employee but do more of the work.
Head-to-Head Comparisons
Detailed side-by-side comparisons of popular tools from this guide:
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