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Global HR Practices

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The Ultimate Guide to PEO for Small Business: Choosing the Right Partner

Small and medium-sized businesses have unique challenges when it comes to managing HR functions such as payroll processing, benefits administration, and compliance with regulations. And while these functions are critical to the success of a business, they can be time-consuming and complicated to navigate. That’s why many small business owners are turning to Professional Employer Organizations (PEOs) for assistance.

In this guide, we’ll explore the advantages of using a PEO for small business, how to select the right PEO for your needs and a list of top PEO companies suitable for small businesses.

PEO for startups

Startups face numerous challenges, but one of the biggest is managing HR functions while trying to grow and scale the business. Using a PEO can help alleviate this burden. PEOs offer a variety of services such as payroll processing, benefits administration, and compliance with regulations. By outsourcing these functions to a PEO, startup founders can focus on building and growing their business. Plus, PEOs often have access to better benefits plans, which can help attract and retain top talent.

PEO for small businesses

PEOs offer various services that simplify numerous internal processes and promote a better working environment. These include:

1. Expense administration

PEO companies are entrusted with ensuring smooth and timely payroll processes that comply with global and local regulations. By leveraging their services, you can steer clear of potential issues like unpaid taxes, penalties, and other outstanding payments. Also, PEOs assist in crafting tailored benefits packages for your new hires. Ultimately, they empower you to gain a detailed overview of your future costs and manage them efficiently.

2. Employee handbooks

Smooth employee onboarding entails introducing new hires to the company’s ethics and procedures. Professional Employer Organizations (PEOs) play a crucial role in preparing and distributing company handbooks to minimize internal conflicts and confusion. As a result, employees swiftly acclimate to the work culture and feel at ease in their workspace.

3. Employee investigations

Having a dedicated team with specialist knowledge of internal processes is crucial for handling employee complaints. However, PEOs excel in managing such matters, conducting thorough investigations, and providing expert guidance on the next steps. Relying on their services ensures effective management and lawful resolutions of these situations.

4. Adherence to local and global laws

A PEO provider assists in navigating the ever-changing and intricate labor laws. Their compliance experts ensure adherence to all pertinent employment regulations. Collaborate with a PEO to stay informed about global and domestic taxation policies, mandatory employee benefits, unemployment insurance, disability laws, and more.

Choosing the right PEO for small business

Selecting the right PEO requires careful consideration of several factors. These include:

1. Evaluate your needs and determine which services you require.

2. Consider the level of customer service and support you’ll receive. Ensure that the PEO offers personalized customer service and has a team that can answer any questions you may have or offer guidance when needed. 

3. Pay attention to the pricing structure. PEOs typically charge fees based on a percentage of your total payroll, so ensure that the cost is within your budget.

10 Top PEO companies for small businesses

There are numerous PEO companies in the market, making it challenging for small business owners to choose the right one. Here is a list of top PEO companies for small businesses, along with their key features:

1. Multiplier

Multiplier is a leading PEO and Employer of Record company with a global presence in 150 countries. Our platform empowers you to effortlessly hire and onboard employees, while seamlessly managing their payments, benefits, and compliance obligations all in one comprehensive solution. With Multiplier, you can access payments in over 120 currencies, ensuring global convenience. Experience the excellence of our services, making us the top choice PEO for small business.

Our team of dedicated experts skillfully handles intricate regulations, effectively mitigating risks. This allows you to concentrate on your core business while ensuring data protection through our state-of-the-art software. Experience peace of mind with our cutting-edge technology.

Key Features:


2. Rippling

Rippling offers a varied suite of services, including Employer of Record (EOR) solutions, payroll management, and benefits features. Their solutions are meticulously crafted to provide a seamless, user-friendly experience. With Rippling, businesses can efficiently manage and support all aspects of their workforce in a single, streamlined platform.

Key Features:

  • Automated payroll
  • Benefits administration
  • App management

3. ADP Total Source

ADP TotalSource offers a co-employment model that empowers businesses to streamline essential HR functions like payroll, benefits, risk management, compliance, and talent management. By leveraging ADP TotalSource, businesses gain access to top-tier benefits while alleviating administrative burdens, enabling them to prioritize their core operations with ease.


  • Payroll and Tax
  • Benefits Administration
  • Risk Management
  • Compliance Support

4. TriNet

TriNet offers HR solutions tailored for small and medium-sized businesses (SMBs). As a trusted Professional Employer Organization (PEO), TriNet provides a wide range of services to effectively manage HR needs, encompassing payroll, benefits administration, compliance, and risk management.

Key Features:

  • Full-service HR
  • Payroll administration
  • Risk mitigation

5. Insperity PEO

Insperity is among the leading PEO companies that deliver HR solutions to businesses, regardless of their size. With decades of expertise in HR, Insperity offers a diverse array of services to assist companies in effectively managing their human resources, payroll, benefits, and compliance requirements.

Key Features:

  • HR solutions
  • Payroll processing
  • Benefits administration

6. Papaya Global

Papaya Global provides employment solutions across numerous countries. Focusing on payroll and benefits management, they offer extensive services to streamline international operations. It’s worth noting that Papaya Global supports payments in 12 different currencies, ensuring flexibility and convenience for their clients.

Key Features:

  • Unified global payroll
  • Multi-country compliance
  • Benefits management

7. Justworks

Justworks is an all-in-one solution that assists businesses to seamlessly manage their payroll, benefits, compliance, and other HR requirements. This allows companies to focus on their crucial operations while increasing the quality and autonomy of administrative tasks.

Key Features:

  • Payroll management
  • Compliance support
  • Access to benefits

8. Paychex PEO

Paychex PEO is an HR platform that helps with managing a range of tasks relating to human resource management, including employee benefits, payroll, and compliance. It assumes full responsibility for processing employee wages, benefits, and withholdings.

Key Features:

  • Payroll processing
  • HR outsourcing
  • Insurance services

9. Alpha Staff

AlphaStaff offers a range of HR services, including payroll administration, benefits, risk management, compliance support, and talent acquisition. They help clients focus on their core business by handling the complexities of HR management and employment law compliance.

  • HR Administration
  • Payroll and Tax
  • Benefits
  • Risk Management
  • Compliance Support

10. Engage PEO

Engage PEO delivers effective HR solutions to small and mid-sized businesses. Their platform helps to sharpen their clients’ competitive advantage by providing hands-on, expert HR services and counsel. Powered by a secure, cloud-based technology platform, they offer a full range of HR services.


  • Payroll and Tax
  • HR Outsourcing Solutions
  • Employee Benefits
  • HR Service Team


Leveraging the services of a Professional Employer Organization (PEO) can significantly benefit small businesses by streamlining their HR functions and allowing them to concentrate on business growth. 

When considering a PEO provider, it is important to thoroughly assess the range of services provided, the quality of customer service, the pricing structure, and the organization’s overall reputation. Additionally, reaching out to the sales team can provide further insights and address any specific queries or concerns you may have. Considering these factors allows you to make an informed decision and maximize the advantages of partnering with a PEO.

Want to learn more about how Multiplier helps businesses grow globally? Talk to our experts.


Q. What are the costs associated with PEO services?

The costs associated with PEO services vary based on factors such as the size of your business and the services required.

Q. How do PEOs handle payroll and benefits?

PEOs handle payroll processing, taxes, benefits administration, and compliance with regulations.

Q. What are the advantages of using a PEO for startups?

The advantages of using a PEO for startups include access to better benefit plans, assistance with compliance, and freeing up time to focus on growing the business.

Q. How to find the best PEO for a small business?

To find the best PEO for your small business, consider your needs, level of customer service, and pricing structure. Research reputable PEOs and read customer reviews to help make an informed decision.

Supriya VS
Supriya VS

Senior Product Marketing Manager

Supriya is the Senior Product Marketer at Multiplier.

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Employ the best person for job, regardless of location

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