Demystifying PEO Pricing in 5 Steps

Beth Dean 01.10.24
Blog header - PEO Pricing Transparency and Nextep

Let’s be honest: PEO pricing can be a tangled mess. Hidden fees, unclear quotes, and confusing structures can leave you feeling like you need help navigating a financial maze. You deserve clarity when it comes to your business dollars. 

PEO pricing should be crystal clear, honest, and tailored to your business needs. It starts with understanding how to identify a PEO that prioritizes pricing transparency.

PEO Pricing Cheat Sheet:

  1.  Demand Upfront Clarity: Don’t settle for vague quotes or blanket statements. Ask for a detailed, line-item breakdown of every service and its associated cost, down to the per-employee fees, transaction charges, and fees for additional services or products, to create an accurate budget for your company. Look for PEOs that present their pricing openly and transparently, with no room for ambiguity.
  2.  Bundled or Transparent: Finding a PEO with a billing method that makes sense for your business is essential. Nextep operates with transparent billing. Here’s what that means: instead of bundling all of our services into one line item, we break out and itemize every charge so you know exactly where your business dollars are going.
  3.  Flat Fee vs Percentage. Some PEOs bill you based on a percentage of payroll, but here’s why it saves your company money to go with a flat-fee approach instead. With a flat rate (as opposed to percentage), your payroll costs are billed as one simple charge that doesn’t fluctuate. Employee raises or large bonuses can cause the percentage-based admin fees to skyrocket.
  4.  Ditch the One-Size-Fits-All: Your business is unique, and your PEO pricing should reflect that. Beware of standardized packages that force you to pay for features you don’t need. Look for a PEO that offers customized solutions tailored to your specific size, industry, and HR requirements. This custom approach ensures you only pay for what you use, maximizing your value and avoiding unnecessary fees.
  5.  Focus on Value Beyond the Price Tag: While cost is important, remember that it’s not the sole factor. Choose a PEO that delivers tangible value, streamlines your HR processes, improves efficiency, offers consistently stellar customer service, and ultimately contributes to your business growth. 

Ready for a PEO that shines a light on its pricing?

Contact Nextep today for a transparent consultation and cost breakdown. We can tailor a PEO pricing solution that meets your needs and budget.


Need help shopping for a PEO?

Here’s a checklist of what to look for.

What to look for in a PEO checklist - Nextep

PEO Checklist

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