PEO / HRO Pricing Information
How does a PEO / HRO service save my business money?
| Work Comp Codes |
8810 Clerical |
3632 Machine Shop |
5645 Construction |
| Social Security/Medicare |
07.65% |
07.65% |
07.65% |
| Federal Unemployment |
00.80% |
00.80% |
00.80% |
| Sate Unemployment |
03.20% |
03.20% |
03.20% |
Workers’ Compensation |
00.65% |
04.25% |
12.60% |
Administrative Overhead |
04.00% |
04.00% |
04.00% |
| Total Traditional % Cost |
16.30% |
19.90% |
28.25% |
* Notes :
- State Unemployment Tax rates vary significantly by state and by employer experience.
- Total costs are estimated and may vary by employer.
- The US Chamber of Commerce, US Dept of Labor and Small Businesses Administration estimates that administrative overhead for business with less than 100 employees ranges from 4% - 12%
1. Bundled Factor Example
| Work Comp Codes |
8810 Clerical |
3632 Machine Shop |
5645 Construction |
| Total PEO % Cost |
14.30% |
17.55% |
24.65% |
* Note - The factor stays constant throughout the year.
2. Unbundled Factor Example
| Work Comp Codes |
8810 Clerical |
3632 Machine Shop |
5645 Construction |
PEO Cost- pre cut-off
(w/SUTA/FUTA TAX) 26.75% |
15.95% |
19.60% |
26.75% |
PEO Cost- post cut-off
(no SUTA/FUTA TAX) 22.75% |
11.95% |
15.60% |
22.75% |
* Note - The factor shifts with Federal and State Unemployment Tax.
As you can see by the illustration above; it is at least 2% cheaper to use the services of the PEO in the first example as compared to the company's current related labor costs.
Example Savings
| Work Comp Codes |
8810 Clerical |
3632 Machine Shop |
5645 Construction |
| Annual Gross Payroll |
$100,000 |
$200,000 |
$150,000 |
| % PEO Savings |
2.00% |
2.35% |
3.60% |
| Actual Savings |
$2,000 |
$4,700 |
$5,400 |
| Total Savings |
$12,100 |
|
|
Keep in mind that the PEO Fee's are included in the rates listed in the examples above. That being said; there are actual savings as opposed to costs associated by using a PEO.
In addition your company is assigned an entire HR department including an HR Manager, Risk Manager, Benefits Administrator, Payroll Specialist, and HR Legal Advisor. |
