Understanding PEO Pricing: Payroll and HR Services

Payroll Services: PEO service baseline

In general, all PEOs will handle your payroll in an accurate and timely manner. The base price for any PEO’s payroll services should include:

• Accurate calculation of all “gross to net” calculations
• Tax withholding and deductions per employee submitted W4s per federal and state (if applicable) rules.
• Tax withholding and deductions for any relevant local income taxes.
• Withholding and remittance of garnishments and court orders for IRS levies and child support
• Accurate calculation and appropriate tax treatment ( pre-tax / section 125 treatment) of the employee portion of payroll deductions for health insurance or other supplemental insurance.
• Payroll payment method via check or direct deposit. Employees electing direct deposit will receive a pay advice that shows their earnings.
• W2s - annual printing, distribution and electronic submission to the government.

Payroll Services – Additional PEO fees possible

Some PEOs may charge additional fees for enhanced services such as:

• W2 reprints
• Unemployment claims processing
• 1099 year end processing
• Specialty reporting for job costing or certified payroll
• On-line access to payment information or reports
• Payroll delivery. Multiple check delivery locations will usually incur a Fedex charge.