PEO range uses typical published rates of $40 to $160 per employee per month, admin fees only. Benefits premiums exist in both columns and are excluded from both, so the comparison stays fair. Compliance-mistake risk is real in the in-house column and not priced here.
Reading your result honestly
- In-house wins on paper more often as you grow. The person costs the same whether you have 30 or 60 employees; PEO fees scale per head. The crossover commonly lands in the 40 to 60 employee range.
- The comparison is not either-or. Many companies keep a person for the human work and hand the administrative load to an ASO or PEO. Price that hybrid too.
- Do not forget what the fee buys beyond labor. Large-group benefits access and shared compliance liability are PEO-side value with no line in this calculator. If those matter to you, the fee column is understated.
- And do not forget the reverse. If your needs are simple, both columns may be overkill: a bureau or software could be the honest answer.
Questions people actually ask
Is it cheaper to hire an HR person or use a PEO?
It depends almost entirely on headcount. Below roughly 40 to 50 employees, a full-time HR generalist (commonly $55,000 to $85,000 plus benefits and software) usually costs more than PEO admin fees for the same team. Above that range the math starts flipping, and many companies land on a hybrid: an internal HR person for culture and people work, with an ASO or PEO carrying the administrative and compliance load.
What does in-house payroll and HR actually cost?
Count four things: the salary and employment costs of whoever does the work, payroll and HR software subscriptions, the owner or manager hours still absorbed by escalations, and the risk cost of compliance mistakes. Most companies only count the first one, which is how in-house looks artificially cheap.
Can I keep HR in-house and still use a PEO?
Yes, and it is common. The PEO carries payroll, benefits, workers comp, and compliance infrastructure while your internal person handles recruiting, performance, and culture. The PEO replaces the administrative half of an HR department, not the human half.
