Comparing the Top PEO Companies: ADP, Paychex, TriNet, Oasis, and More
When you enter into a client service agreement (CSA) with a professional employer organization, two things happen: you take on a new business partner and your staff gets a new co-employer. With such high stakes, you need to research PEOs carefully to ensure you find the best one to fulfill your needs, take care of your employees, and keep your business thriving. Every PEO offers different service levels and packages, so look closely at their offerings and how well those offerings match your needs.
One of the country's most well-known payroll processers, ADP also offers PEO services. Theirs is a comprehensive human resources solution, performing HR administrative tasks as well as providing payroll, benefits, and risk management services. ADP promises exemplary customer support services for any size business, with dedicated staff to answer any questions you have and help resolve issues.
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Advantages to signing with ADP include:
- Benefits: ADP offers access to a wide variety of benefits packages, including medical, vision, dental, life, and disability insurance. They also offer access to retirement programs such as 401(k) plans and flexible spending accounts.
- HR administration: ADP assists in hiring and terminating employees, creating and updating employee handbooks, and providing employee training. In addition, it offers assistance in performance management, including employee reviews, and in conducting employee satisfaction surveys to help employers quickly address issues and reduce turnover.
- Licensing: ADP has licenses to operate across the country, which means it can work with employees in all 50 states. Taking advantage of this service requires signing a two-year contract.
- Online portal: You and your employees may view payroll information, leave balances, and benefit information online and via the ADP app. Employees may also contact their colleagues via this online service and receive company-related ADP updates.
- Payroll processing: ADP handles payroll processing, including distributing checks, tracking employee time and leave balances, preparing W-2s, and filing taxes.
- Risk management: ADP shares responsibility for any issue placing your company at risk. It manages and files claims for unemployment and workers' compensation insurance, and helps implement return-to-work programs.
- Support: ADP offers a variety of customer support options, including telephone, email, and live chat. In addition, they offer a variety of online resources via the ADP website, including FAQs, a blog, whitepapers, videos, and brochures.
Paychex provides an enormous variety of HR-related services, including compliance, payroll, benefits, recruitment, and training. Partnering with this PEO allows companies to focus fully on their core competencies while Paychex manages everything related to human resources. As with all PEOs, pricing varies according to the services you select.
Advantages to signing with Paychex include:
- Benefits: Paychex offers a variety of benefits packages, including health, vision, and dental insurance, as well as 401(k) plans.
- HR administration: Paychex assists with recruitment, employee training, performance management, and terminations.
- Licensing: Paychex has licenses to work across the country, so it can service employees in all 50 states.
- Online portal: Paychex provides a variety of information online for both you and your employees. Employees easily access pay and leave data as well as benefits information. Both employer and employee have their own dashboards. In addition, the Paychex Flex mobile app allows you to view this information from your mobile device.
- Payroll processing: Paychex processes all payroll, including filing taxes.
- Risk management: Paychex manages unemployment and workers' compensation insurance. It also ensures you remain compliant with both federal and local laws.
- Support: Paychex offers customer support via online chat, email, and telephone. In addition, they offer online resources such as videos, articles, tutorials, an FAQ, and whitepapers. Their website also offers regulatory information so employers remain up-to-date on all pertinent laws.
TriNet provides an extensive list of HR services that allows companies to focus their efforts on the business at hand. Contracts and plans vary by client, ranging from month-to-month to long-term agreements, so review your CSA carefully before signing anything.
Advantages to signing with TriNet include:
- Benefits: TriNet offers a variety of benefits packages, including health, dental, life, and vision insurance. In addition, they provide flexible spending accounts and retirement plan options.
- HR administration: TriNet handles all administrative tasks, depending on the package you select. Options include creating and updating employee handbooks, performance management and improvement, and online trainings. Other services include recruitment, creating job descriptions, posting job openings, screening applicants, and conducting background checks.
- Licensing: TriNet is licensed to operate across the country, so it can work with employees in all 50 states, even if they work remotely rather than at your organization's central location.
- Payroll processing: TriNet's specialty is payroll processing, including distribution, time and leave tracking, and compliance.
- Online portal: TriNet offers a cloud platform that allows you and your employees to access benefit and payroll information from either a desktop or mobile device. Also available via this app are PTO accrual and contact information for colleagues.
- Risk management: TriNet employees are well-trained and up-to-date on both state and federal labor laws and regulations, ensuring you remain in compliance at all times.
- Support: TriNet offers numerous customer support options, including a live chat feature, email, and telephone support. In addition, it provides a variety of resources on the TriNet website and app, including a company blog, FAQs, webinars, articles, and whitepapers.
Oasis Outsourcing allows you to streamline your human resources functions without signing a long-term contract. If at any time you decide the PEO arrangement doesn't work for you, simply give written notice of your wish to cancel. It also allows clients to select only the features they need, and offers industry-specific HR solutions.
Advantages to signing with Oasis Outsourcing include:
- Benefits: Oasis benefit packages include flexible savings plans as well as health, vision, and dental insurance.
- HR administration: Oasis handles a variety of administrative tasks, including creating and updating employee handbooks, recruitment, hiring, training assistance, and terminations.
- Licensing: Oasis is licensed to operate in all 50 states, allowing it to service your employees no matter where they're located, including remote workers.
- Online portal: Oasis provides a variety of information to employees and employers. Employers can access their account to manage their Oasis partnership. Employees can access information regarding their pay, PTO accrual, benefits, and more. They may also use the Oasis Employee Direct app from any Android or iOS device. The app allows them to review check stubs, track PTO, and even research employee discount programs.
- Payroll processing: Oasis handles payroll processing and distribution, prepares W-2s, files and administers taxes, and tracks employee time.
- Risk management: Oasis accepts liability for payroll errors (assuming the information received from you is correct and error-free). It oversees all regulatory and compliance issues, including remaining up-to-date on federal and local regulations. It also handles workers' compensation and unemployment insurances, as well as claims management and return-to-work programs.
- Support: Oasis provides two main points of contact, a Relationship Manager and Payroll Account Manager. Your dedicated Relationship Manager answers all questions regarding employees, performance management, benefits enrollment, and compliance. Your dedicated Payroll Account Manager is your contact for all things payroll, including employee records, garnishments, attendance records, and W-2s. You also find a variety of resources on the Oasis website, including a blog, newsletter, management tips, videos, and healthcare.
Insperity provides HR services for any size company, helping you streamline operations to focus on your core mission. Although it offers most of what you'd want in a PEO partner, it doesn't provide quite the same level of support as the above outfits do.
Advantages to signing with Insperity include:
- Benefits: Insperity offers flexible spending accounts, 401(k) plans, and health, vision, and dental insurance.
- HR administration: Insperity assists with recruitment and hiring, training, creating and updating an employee handbook, and performance management.
- Licensing: Insperity is licensed to operate in all 50 states, so it can service your employees no matter where they are.
- Online portal: Insperity offers information both on its website and through its mobile app. Both you and your employees may view paystubs, benefits information, PTO accruals, and contact information.
- Payroll processing: Insperity handles payroll processing and distribution, including federal and local compliance.
- Risk management: Insperity handles claims management, compliance and regulatory issues as they arise, and return-to-work programs.
- Support: Insperity's customer support includes email and telephone options, but not live chat. It offers some educational resources on its website, but not an FAQ or a regularly updated blog.
The relatively new Justworks launched in 2012 and quickly made a name for itself as a professional employer organization. Its specialty is providing HR services to small and growing businesses. Justworks also provides a variety of automations that help streamline your entire HR system.
Advantages to signing with Justworks include:
- Benefits: Justworks partnered with top benefit providers to help maximize packages even for small businesses. Benefits offered include medical, vision, and dental insurance.
- HR administration: Justworks offers a variety of automations that help manage your human resources tasks, including creating policies around vacation and sick leave and storing employee documents, such as stock options and performance reviews.
- Licensing: Justworks is licensed in all 50 states, making it easy for you to grow your business or work with remote employees.
- Online portal: Justworks gives each employee his or her own dashboard to enroll in benefits programs, view profiles and performance reviews, review payroll data, and request leave. You can also create holiday calendars to help manage time off requests.
- Payroll processing: Justworks processes payroll and payments, including direct deposit and bonuses. It also helps you manage payments to vendors and external clients, and provides reporting and analytics of all payments.
- Risk management: Justworks manages payroll taxes, unemployment insurance and claims, and 1099s for contractors and W-2s for employees. It also helps you remain in compliance with all state, local, and federal regulations, including assisting you with securing a workers' compensation policy that aligns with local laws. Further, Justworks helps businesses with 50+ FTEs remain compliant with ACA.
- Support: Justworks provides support for employees who are new to the team. They also offer support via phone, email, and live chat between the hours of 8 AM and 8 PM, EST, Monday through Friday. The Justworks website also provides a blog and a variety of resources regarding employee management, compliance, benefits, and more.
The Bottom Line
Signing with a PEO allows you to focus your efforts on the revenue-generating aspects of your business while the PEO handles HR-related tasks such as payroll, benefits, and compliance. Services and pricing vary. You can choose a full-service plan that handles everything from hiring to firing and all points in between, or you can find a middle ground that works better for your company.
To determine which PEO is the best option for you, look closely at their offerings and prices, and compare contracts carefully. Consider also any termination penalties if you were to decide the PEO relationship wasn't a good fit.