Posts tagged PEO Administration Fees
Does your PEO charge a Percentage of Payroll for your Administration Fee?

PEO makes a lot of sense and we’ve helped numerous companies find the right one, but paying a Percentage of Payroll as your Administration Fee is always a bad idea. So if you are in a PEO that charges a Percentage of Payroll, it’s in your best interest to find out what you’re paying exactly and to have it fixed.

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What should my administration fee be for my PEO?

This question is asked numerous times, and it’s not easy to answer because there are a lot of factors that go into what your administration fee should be. For those of you new to PEO or unfamiliar, the administration fee is what you pay the PEO for their services. To fully understand what you should pay in administration fees, you must first understand how a PEO makes money.

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PEO Administration Fees

All PEOs charge a fee for their service it’s called an Administration Fee. One critical point to consider how they charge the Administrative Fee and what it exactly includes. Some PEOs charge a flat fee per month per employee (PEPM) and others charge a percentage of payroll (POP). It’s important to know which is which, but more important is to know the difference.

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