Understanding PEO Pricing: Payroll and HR Services
Each PEO in the USA has different capabilities regarding payroll and HR services. At StaffMarket we work to identify the capabilities you need from a PEO so that you are only paying for the services you will use.
Payroll Services Pricing
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.
HR Services Pricing
Depending on your needs, each PEO may charge fees on a per-use basis for HR services such as:
- Background Checks
- Pre-Employment Testing
- Resume Screening
- Customized Employee Handbooks
- Performance Appraisals
- Rewards and Recognition Programs
- Position Descriptions
- Drug-Free Workplace
- Training (Employee and Managerial)