Posts tagged PEO Fees
Are you getting the best deal on your PEO?

If you're currently in a Professional Employer Organization (PEO), you've probably wondered if you should have played the field a little more. PEOs are guilty of relying on the complexity of their set-up to obscure costs and keep you from being as well-informed a customer as you might for other services like an accountant or a software vendor.

But "difficult to tell" doesn't mean unknowable. Read on to find out how to do your due diligence with any PEO.

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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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What’s your administrative fee for your PEO?

The great debate of the PEO industry is what is your administrative fee. First let’s examine what this means, in a PEO model the PEOs charge an administrative fee. This fee charged for the services of the PEO. Now understanding what this fee is let’s uncover the differences in how it’s charged.

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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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