What’s The Cost of a Tampa PEO Company’s Services?

March 8, 2017

If you’ve never worked with a Tampa PEO company before, one of your first questions might be, “what’s a PEO service cost?”

And, importantly, if you’re currently working with another PEO or a Tampa payroll services company, you might also be wondering about the price (and wondering if you’re paying too much or have a pretty good deal).

Well, the reality is, you can’t just shop online for a PEO like you’re buying a pair of new sneakers. Most PEOs in Tampa will customize pricing based on your specific company, it’s employees, its industry and other factors. The best way to know what it will cost is to take advantage of a no-obligation rate quote. Like shopping for new car insurance, it can pay to look around.

That being said, there are some basic guidelines.

Solid Business Solutions in Houston TX had a good, quick overview:

Administrative fees can range from to 2% to 6% of gross wages and the rate may vary based on the services you use and what industry you are in; industries with lower wage employees may pay a higher percentage of gross wages. PEO’s also have to factor in their workers’ compensation costs that can range from less than 1% and up to 15% of gross wages for each employee based on their individual workers’ compensation classification; office/clerical employees are typically at the low end with manufacturing or construction classifications being much higher. Typically, administrative fees charged by PEO’s range from $1500 to $2500 per employee per year on average but can vary based on the negotiated services included within the PEO arrangement.

So…if you had 5 employees and the cost was $2,000 per employee per year, your PEO costs would be $10,000.

If you think about that in terms of pay cycles (26 bi-weekly pay cycles for example), your cost per employee per pay cycle is about $77. When you look at it like that — verse your time spent on doing it yourself every other week — that can seem like a real bargain.

*note: every company’s rate will vary. And this is a pretty basic overview of costs, but one designed to give a quick answer for busy business owners.

Get a Free Rate Quote for Your Business

The team at Value PEO would like to speak to you. We can answer you questions and also provide you with a Free Quote on a customized plan.

For more information, please fill out the contact form on the right hand side of the page — or call directly at (813) 740-8612