# 7 Best PEO Software - 2026 Reviews & Pricing

> Find the best PEO Software for your organization. Compare top PEO Software systems with customer reviews, pricing, and free demos.

Source: https://www.softwareadvice.com/hr/peo-comparison

---

[Home](https://www.softwareadvice.com/)

/

PEO Software

Software Advice offers objective insights based on verified user reviews and independent product and market research. When our advisors match you to a software provider, we may earn a referral fee.

# Best PEO Software of 2026

Updated June 18, 2026

Written by [Brian Westfall](https://www.softwareadvice.com/resources/author/brianwestfallsoftwareadvice-com/)

Associate Principal Analyst

Edited by [Parul Sharma](https://www.softwareadvice.com/resources/author/parul-sharma/)

Editor

Reviewed by [Ryan Eschenburg](https://www.softwareadvice.com/resources/author/ryan-eschenburg/)

Senior Advisor

Talk with us for a free 15-min consultation

Expert advisors like Jacqueline, who have helped 1,000+ companies, can find the right software for your needs.

On this page

-   All Software
    
-   Software Advice FrontRunners
    
-   Buyer's Guide
    
-   Frequently Asked Questions
    
-   Popular Comparisons
    

PEO software helps HR teams and business owners manage outsourced payroll, benefits, and compliance through third-party providers. Navigating 310 products—each built for different team sizes, service models, and regulatory needs—can be overwhelming. To help you narrow it down, I have curated **a list of the PEO software Frontrunners based on user reviews. For further information,** [read my PEO software buyer's guide.](https://www.softwareadvice.com/hr/peo-comparison/#buyers-guide)

## PEO Software

(254 products)

Sort by

**Recommendations**: Sorts listings by the number of recommendations our advisors have made over the past 30 days. Our advisors assess buyers’ needs for free and only recommend products that meet buyers’ needs. Vendors pay Software Advice for these referrals.  
  
**Reviews**: Sorts listings by the number of user reviews we have published, greatest to least.  
  
**Average Rating**: Sorts listings by overall star rating based on user reviews, highest to lowest.  
  
**Alphabetically (A-Z)**: Sorts listings by product name from A to Z.

Sort by

**Recommendations**: Sorts listings by the number of recommendations our advisors have made over the past 30 days. Our advisors assess buyers’ needs for free and only recommend products that meet buyers’ needs. Vendors pay Software Advice for these referrals.  
  
**Reviews**: Sorts listings by the number of user reviews we have published, greatest to least.  
  
**Average Rating**: Sorts listings by overall star rating based on user reviews, highest to lowest.  
  
**Alphabetically (A-Z)**: Sorts listings by product name from A to Z.

[Rippling](https://www.softwareadvice.com/hr/rippling-profile/)

FrontRunner 2026

Rippling is an integrated workforce management platform that unifies HR, IT, and finance tools to streamline operations. It cent...[Read more about Rippling](https://www.softwareadvice.com/hr/rippling-profile/)

**4.9**

([4818 reviews](https://www.softwareadvice.com/hr/rippling-profile/reviews/))

**491**

recommendations

Free trial

Free version

Integrations

Integrations

Google Docs

Google Drive

+192 more

+191 more

+190 more

Rippling's Best Rated Features

5.0Sick Leave Tracking

See All

Rippling's Worst Rated Features

4.11Competency Management

See All

[Paylocity](https://www.softwareadvice.com/hr/web-pay-profile/)

Tired of juggling disconnected systems for HR, Finance, and IT? Wasted time and manual work slow your business down. Paylocity i...[Read more about Paylocity](https://www.softwareadvice.com/hr/web-pay-profile/)

**4.3**

([1846 reviews](https://www.softwareadvice.com/hr/web-pay-profile/reviews/))

**419**

recommendations

Free trial

Free version

Integrations

Integrations

Microsoft 365

Asana

+68 more

+67 more

+66 more

Paylocity's Best Rated Features

4.83Reimbursement Management

See All

Paylocity's Worst Rated Features

3.44Leave Tracking

See All

[ADP Workforce Now](https://www.softwareadvice.com/hr/adp-workforce-now-profile/)

FrontRunner 2026

ADP Workforce Now is an HR suite that combines all core payroll and HR management processes into a single database-driven platfo...[Read more about ADP Workforce Now](https://www.softwareadvice.com/hr/adp-workforce-now-profile/)

**4.4**

([7219 reviews](https://www.softwareadvice.com/hr/adp-workforce-now-profile/reviews/))

**198**

recommendations

Free trial

Free version

Integrations

Integrations

QuickBooks Enterprise

Xero

+21 more

+20 more

+19 more

ADP Workforce Now's Best Rated Features

4.90Peer Appraisals

See All

ADP Workforce Now's Worst Rated Features

3.50Competency Management

See All

[Deel](https://www.softwareadvice.com/hr/deel-profile/)

FrontRunner 2026

Deel is the only global-first people platform that enables companies to hire, relocate, pay, manage, equip, and support talent i...[Read more about Deel](https://www.softwareadvice.com/hr/deel-profile/)

**4.8**

([4284 reviews](https://www.softwareadvice.com/hr/deel-profile/reviews/))

**153**

recommendations

Free trial

Free version

Integrations

Integrations

PayPal

Slack

+51 more

+50 more

+49 more

Deel's Best Rated Features

5.0Employee Scheduling

See All

Deel's Worst Rated Features

3.75Scheduling

See All

[BiznusSoft HR](https://www.softwareadvice.com/hr/hrmssoft-profile/)

BiznusSoft HR (formerly HRMSSoft) is a cloud-based human capital management system suitable for companies of all sizes. It inclu...[Read more about BiznusSoft HR](https://www.softwareadvice.com/hr/hrmssoft-profile/)

**4.5**

([19 reviews](https://www.softwareadvice.com/hr/hrmssoft-profile/#reviews))

**108**

recommendations

Free trial

Free version

BiznusSoft HR's Best Rated Features

4.83Time & Attendance

See All

BiznusSoft HR's Worst Rated Features

4.83Time & Attendance

See All

1

[2](https://www.softwareadvice.com/hr/peo-comparison/?page=2)[3](https://www.softwareadvice.com/hr/peo-comparison/?page=3)[4](https://www.softwareadvice.com/hr/peo-comparison/?page=4)[5](https://www.softwareadvice.com/hr/peo-comparison/?page=5)

...

[11](https://www.softwareadvice.com/hr/peo-comparison/?page=11)

### Software Advice FrontRunners 2026

Software

Average Score

Pricing Info

Rippling

4.86

([4818](https://www.softwareadvice.com/hr/rippling-profile/reviews/))

93/100

Best for Customer Satisfaction

Deel

4.85

([4284](https://www.softwareadvice.com/hr/deel-profile/reviews/))

93/100

Best for Usability

ADP Workforce Now

4.43

([7219](https://www.softwareadvice.com/hr/adp-workforce-now-profile/reviews/))

89/100

Best for Automation

Paychex Flex

4.16

([1804](https://www.softwareadvice.com/hr/paychex-flex-profile/reviews/))

83/100

Best for Mobile App

Justworks

4.58

([740](https://www.softwareadvice.com/hr/justworks-peo-profile/reviews/))

81/100

Most Rated for SMBs

ADP TotalSource

4.24

([457](https://www.softwareadvice.com/hr/adp-totalsource-profile/reviews/))

80/100

Best for Quick Implementation

TriNet HR Plus

4.21

([823](https://www.softwareadvice.com/hr/zenefits-profile/reviews/))

70/100

Most Used by Financial Services

Rippling

4.86

([4818](https://www.softwareadvice.com/hr/rippling-profile/reviews/))

Average Score:

93/100

Deel

4.85

([4284](https://www.softwareadvice.com/hr/deel-profile/reviews/))

Average Score:

93/100

ADP Workforce Now

4.43

([7219](https://www.softwareadvice.com/hr/adp-workforce-now-profile/reviews/))

Average Score:

89/100

Paychex Flex

4.16

([1804](https://www.softwareadvice.com/hr/paychex-flex-profile/reviews/))

Average Score:

83/100

Justworks

4.58

([740](https://www.softwareadvice.com/hr/justworks-peo-profile/reviews/))

Average Score:

81/100

ADP TotalSource

4.24

([457](https://www.softwareadvice.com/hr/adp-totalsource-profile/reviews/))

Average Score:

80/100

TriNet HR Plus

4.21

([823](https://www.softwareadvice.com/hr/zenefits-profile/reviews/))

Average Score:

70/100

How We Selected This Software List

5,454verified reviews

55+Software Advisors on staff

8,267conversations with active software buyers

Our independent and objective research is based on market demand signals along with analysis of our proprietary data, including product information, verified user reviews, and advisor conversations with buyers.

Get a software list tailored to your industry and business needs in 15 minutes

* * *

## Best for Customer Satisfaction

### [Rippling](https://www.softwareadvice.com/hr/rippling-profile/)

**4.9**

([4818 reviews](https://www.softwareadvice.com/hr/rippling-profile/reviews/))

Average score:

93/100

Average Score:

93/100

Pros:

all-in-one platform integration

automation of hr and payroll tasks

Cons:

slow or inconsistent customer support

frequent bugs and glitches

Pricing:

Starting at $8.00 per month

Why we chose this:

Of the products listed on our FrontRunners report, Rippling is the highest rated for customer satisfaction out of the most popular tools.

Who should use this:

Rippling is best for organizations prioritizing customer satisfaction, especially those seeking a unified platform for HR, payroll, and IT. Our reviewers say Rippling streamlines workflows, centralizes employee data, and offers an intuitive interface that saves time and reduces manual work.

-   Reviewers Perspective
    
    "What I like the most is all the different areas of my job position and the company that can be handled through Rippling, from tracking hours, payroll, escalating concerns, to applying for new positions and following improvement plans."
    
    YS
    
    Yoel Sanchez
    
    Form and Signature Coordinator
    
    Used for 6-12 months
    
    We analyzed 720 verified user reviews for Rippling to find out what actual users really think.
    
    **Payroll**  
    Administrators automate payroll, tax calculations, and document management in one system. The platform reduces manual work and errors, supporting efficient compensation and compliance for growing organizations.
    
    **Employee Management**  
    HR teams manage onboarding, benefits, and time tracking in a centralized platform. Both admins and employees update information, request time off, and complete HR tasks with minimal training.
    
    **Navigation**  
    Users locate tools, documents, and features quickly with organized menus and search functionality. Streamlined navigation supports HR and IT tasks, reducing time spent searching for information.
    
-   Screenshots
    

## Best for Usability

### [Deel](https://www.softwareadvice.com/hr/deel-profile/)

**4.8**

([4284 reviews](https://www.softwareadvice.com/hr/deel-profile/reviews/))

Average score:

93/100

Average Score:

93/100

Pros:

intuitive and user-friendly interface

timely and reliable payments

Cons:

slow and inconsistent customer support

high withdrawal and transfer fees

Pricing:

Starting at $5.00 per month

Why we chose this:

In our analysis of PEO products with the most market demand, Deel is the highest rated for its usability out of the most popular tools.

Who should use this:

Deel is best for teams seeking high usability in global payroll and contractor management. Our reviewers point out that Deel’s intuitive interface, seamless onboarding, and efficient payment tracking make it accessible even for smaller teams without dedicated HR staff.

-   Reviewers Perspective
    
    "The platform also automates the invoicing and compliance paperwork (like generating annual tax forms), which saves significant time and administrative hassle."
    
    DP
    
    Dhruvkumar Panchal
    
    Design Engineer
    
    Used for 6-12 months
    
    We analyzed 739 verified user reviews for Deel to find out what actual users really think.
    
    **Payment Management**  
    Finance teams handle international payments, contracts, and payroll in one platform. Automated invoicing and transparent processes streamline currency conversion and compliance paperwork, reducing administrative burden.
    
    **Ease of Use**  
    HR and payroll managers navigate a well-organized platform that simplifies onboarding, contract management, and payment tracking. After a brief adjustment, users efficiently locate features for remote work management.
    
    **Customer Support**  
    Support teams resolve questions via chat and other channels. Availability and reliability contribute to smooth global payroll management, though response times may vary during peak periods or complex cases.
    
-   Screenshots
    

## Best for Automation

### [ADP Workforce Now](https://www.softwareadvice.com/hr/adp-workforce-now-profile/)

**4.4**

([7219 reviews](https://www.softwareadvice.com/hr/adp-workforce-now-profile/reviews/))

Average score:

89/100

Average Score:

89/100

Pros:

all-in-one hr and payroll platform

user-friendly interface and navigation

Cons:

customer support responsiveness and resolution

frequent login and password issues

Pricing:

Pricing available upon request

Why we chose this:

In our analysis of PEO products with the most market demand, ADP Workforce Now is the most requested by users for automation out of the most popular tools.

Who should use this:

ADP Workforce Now is best for businesses looking to automate HR and payroll processes. Our reviewers say its robust automation features, integrated time tracking, and seamless payroll-benefits connection significantly reduce manual effort and increase operational efficiency.

-   Reviewers Perspective
    
    "With it being an all in one app for time tracking, payroll, employee info, and benefit sign up, it makes for a seamless approach to not have multiple places to find these."
    
    JG
    
    Jonathana Gurney
    
    Director of Plumbing
    
    Used for 2+ years
    
    We analyzed 868 verified user reviews for ADP Workforce Now to find out what actual users really think.
    
    **Payroll**  
    HR and payroll teams manage time tracking, payroll processing, and benefits in one platform. The system supports compliance, reporting, and payroll accuracy for both employees and administrators.
    
    **Employee Information**  
    Managers and employees access pay stubs, benefits, schedules, and personal data. Self-service features empower users to update profiles, request time off, and reduce HR workload.
    
    **Pay and Paystubs**  
    Employees track hours, compare pay periods, and manage deductions in a user-friendly dashboard. Options to download or print documents streamline payroll and benefits management.
    
-   Screenshots
    

## Best for Mobile App

### [Paychex Flex](https://www.softwareadvice.com/hr/paychex-flex-profile/)

**4.2**

([1804 reviews](https://www.softwareadvice.com/hr/paychex-flex-profile/reviews/))

Average score:

83/100

Average Score:

83/100

Pros:

employee self-service access

payroll processing and management

Cons:

poor customer service and support

frequent payroll and tax errors

Pricing:

Pricing available upon request

Why we chose this:

In our analysis of PEO products with the most market demand, Paychex Flex is the most requested by users for mobile app out of the most popular tools.

Who should use this:

Paychex Flex is best for organizations seeking a strong mobile app experience for payroll and HR management. Our reviewers say the mobile app allows employees and managers to access pay stubs, manage PTO, and view benefits information easily from anywhere, improving convenience and engagement.

-   Reviewers Perspective
    
    "I like that Paychex flex allows multiple users to log in and work on payroll to allow for each person in each department to enter there staff hours."
    
    KS
    
    Kayla Schneeberger
    
    Program Director
    
    Used for 2+ years
    
    We analyzed 774 verified user reviews for Paychex Flex to find out what actual users really think.
    
    **Payroll**  
    Department managers log in to enter staff hours and process payroll. The dashboard streamlines onboarding, payroll processing, and employee self-service, supporting businesses of varying sizes and complexities.
    
    **Ease of Use**  
    HR teams and managers set up and use Paychex Flex with little training. The website and mobile app simplify work hour tracking, payroll, and benefits management for users with limited technical skills.
    
    **Pay and Paycheck**  
    Employees and managers access pay stubs, W-2s, and paycheck details from desktop or mobile. The platform centralizes pay-related information, streamlining payroll and personal financial management.
    
-   Screenshots
    

## Most Rated for SMBs

### [Justworks](https://www.softwareadvice.com/hr/justworks-peo-profile/)

**4.6**

([740 reviews](https://www.softwareadvice.com/hr/justworks-peo-profile/reviews/))

Average score:

81/100

Average Score:

81/100

Pros:

intuitive and user-friendly interface

multi-location and remote workforce support

Cons:

customer support responsiveness issues

frequent software bugs and errors

Pricing:

Starting at $8.00 per month

Why we chose this:

According to our user reviews, Justworks is the most requested by small businesses out of the most popular tools.

Who should use this:

Justworks is most rated for SMBs needing a comprehensive HR and payroll platform. Our reviewers say it offers intuitive workflows, easy time tracking, and responsive support, making it practical for small and midsize businesses managing onboarding and payroll with limited HR resources.

-   Reviewers Perspective
    
    "What I like most about Justworks is how user-friendly and well-organized the platform is."
    
    RS
    
    Rachel Serrano
    
    Care Partner
    
    Used for 6-12 months
    
    We analyzed 485 verified user reviews for Justworks to find out what actual users really think.
    
    **Customer Support**  
    Support staff resolve onboarding and HR questions quickly via live chat and other channels. Managers rely on timely assistance and feedback-driven improvements to streamline HR operations.
    
    **Time Tracking**  
    Employees and managers log work hours using mobile or desktop options. GPS tracking and pay period review features support compliance and organization for both remote and in-office teams.
    
    **Pay and Payment**  
    HR teams and employees manage pay stubs, payment history, and wage tracking. Direct deposit and transparent calculations simplify payroll workflows for both employees and contractors.
    
-   Screenshots
    

## Best for Quick Implementation

### [ADP TotalSource](https://www.softwareadvice.com/hr/adp-totalsource-profile/)

**4.2**

([457 reviews](https://www.softwareadvice.com/hr/adp-totalsource-profile/reviews/))

Average score:

80/100

Average Score:

80/100

Pros:

all-in-one HR solution

dedicated HR business partner support

Cons:

high overall costs and fees

reporting tools are hard to use

Pricing:

Pricing available upon request

Why we chose this:

In our analysis of PEO products with the most market demand, ADP TotalSource is the most requested by users for quick implementation out of the most popular tools.

Who should use this:

ADP TotalSource is best for businesses needing quick implementation of HR and payroll solutions. Our reviewers say the platform’s straightforward setup, comprehensive HR support, and self-service options help SMBs efficiently manage payroll, benefits, and compliance with minimal ramp-up time.

-   Reviewers Perspective
    
    "ADP TotalSource provides a comprehensive, all-in-one platform that streamlines end-to-end HR administration, payroll, compliance, and benefits management, which makes it a robust solution for growing organizations."
    
    MS
    
    Miriam Schneider
    
    President, General Counsel
    
    Used for 2+ years
    
    We analyzed 348 verified user reviews for ADP TotalSource to find out what actual users really think.
    
    **Ease of Use**  
    HR and payroll teams access records, process payroll, and manage employee information from one portal. The clear interface and helpful resources streamline remote and in-office workflows.
    
    **HR Management**  
    Small teams manage payroll, compliance, and employee records in a consolidated platform. Legal guidance and self-service features help organizations stay compliant and efficient without dedicated HR staff.
    
    **Small Business**  
    Small businesses access competitive benefits, compliance support, and administrative relief. The platform’s one-stop-shop approach and dedicated support help organizations focus on growth and employee satisfaction.
    
-   Screenshots
    

## Most Used by Financial Services

### [TriNet HR Plus](https://www.softwareadvice.com/hr/zenefits-profile/)

**4.2**

([823 reviews](https://www.softwareadvice.com/hr/zenefits-profile/reviews/))

Average score:

70/100

Average Score:

70/100

Pros:

all-in-one hr platform

time off and pto tracking

Cons:

customer service responsiveness and quality

lack of customization and flexibility

Pricing:

Pricing available upon request

Why we chose this:

Of the products listed on our FrontRunners report, TriNet HR Plus is the most requested by users in financial services out of the most popular tools.

Who should use this:

TriNet HR Plus is most used by financial services firms and SMBs seeking integrated HR management. Our reviewers point out that its ease of onboarding, automation of benefits enrollment, and centralized employee data help streamline HR tasks and support efficient, paperless workflows.

-   Reviewers Perspective
    
    "The UI is also very easy to navigate with a low learning curve if you've never used them before."
    
    AG
    
    Annie G
    
    Manager
    
    Used for 2+ years
    
    We analyzed 578 verified user reviews for TriNet HR Plus to find out what actual users really think.
    
    **Ease of Use**  
    Employees access HR information, benefit details, and time-off tools in a single dashboard. Logical menus and clear labeling reduce manual tracking and streamline daily HR tasks for all experience levels.
    
    **Employee Management**  
    Managers consolidate onboarding, time-off requests, and benefits management in one place. Employees update their own information, reducing administrative workload and improving transparency around payroll and compliance.
    
    **Onboarding**  
    HR teams automate offer letters, document signing, and benefits enrollment. Customizable templates and electronic processes ensure consistency and compliance, supporting both remote and in-person onboarding.
    
-   Screenshots
    

#### Methodology

The research for the best PEO software list was conducted in March 2026. We evaluated data (user reviews and demand signals) from the past 24 months as of the research date. [Read the complete methodology.](https://www.softwareadvice.com/legal-page/frontrunners-methodology/)

* * *

## Popular PEO Comparisons

[

Rippling vs ADP Workforce Now

](https://www.softwareadvice.com/hr/adp-workforce-now-profile/vs/rippling/)[

Paylocity vs Deel

](https://www.softwareadvice.com/hr/deel-profile/vs/web-pay/)[

Asure vs Paychex Flex

](https://www.softwareadvice.com/hr/asure-payroll-profile/vs/paychex-flex/)[

Crelate vs Top Echelon

](https://www.softwareadvice.com/hr/crelate-profile/vs/top-echelon/)

## Send me a copy of this list to my inbox

### Get a copy of this list with pricing info sent to your inbox so you can pick up where you left off when convenient to you.

Here's what we'll cover:

[What is PEO software?](#WhatisPEOsoftware)

[Features of PEO software](#FeaturesofPEOsoftware)

[How to choose the right PEO software](#HowtochoosetherightPEOsoftware)

## PEO software essentials 

PEO (professional employer organization) software enables PEOs and ASOs (administrative services organizations) to manage and optimize human resources (HR) operations for client businesses. PEO tools include core HR functionalities such as payroll management, benefits management, and compliance reporting to support PEOs in managing global workforces.

Often, buyers who are looking for a payroll solution—or to outsource payroll services—think they need PEO software when PEO software is almost exclusively used by PEOs and ASOs.

First-time buyers should consider the budget, number of users, specific use cases, and necessary integrations. Consulting stakeholders to determine key questions for vendors can help find the best system. Questions for vendors may include:

-   What does your user interface look like? 
    
-   Will your software play nice with client systems? 
    
-   What support options will be available to me?
    

Our Software Advice site has 326 different PEO vendors, but choosing the right option can be a long process. In this guide, you’ll learn the essential components of PEO tools and get step-by-step guidance on how to choose the right tool for your practice. If you’d prefer to chat with one of our experienced HR software advisors, such as Ryan Eschenburg—who has led buyers to the right HR software over 10 years—[schedule a call](https://calendly.com/appointments-34/software-advice-appointment?month=2024-08) or start a chat with us.

## What is PEO software?

PEO software helps PEOs and administrative services organizations (ASOs) perform HR duties for client businesses. Along with the functionality to manage your customers' core HR needs (including payroll, benefits enrollment, and compliance reporting) PEO software systems also allow you to create custom invoices and bill clients for services rendered.

PEO dashboard in [Worklio](https://www.softwareadvice.com/hr/worklio-profile/)

Being a PEO doesn't necessarily mean you need to buy a product solely dedicated to the PEO/ASO audience (though they do exist—see the image above for an example). Many popular HR systems offer the functionality PEOs need and cater to both in-house HR departments and outsourced HR service providers

Not a PEO? According to our advisors, you might not need PEO software at all. “The most common buyer \[for PEO software\] is someone who wants to manage most of their payroll operations in-house,” explains Eschenburg. If this sounds like you, check out our [payroll tools](https://www.softwareadvice.com/hr/payroll-software-comparison/).

## Features of PEO software

All PEO software includes HR management, workforce management, and PEO/ASO-specific features. Most share various common features such as attendance management, benefits management, billing and invoicing, and client management.

### Core PEO software features

Each year our advisors speak to dozens of PEO users. We have analyzed those conversations to give you a better understanding of which features are most critical to PEOs and ASOs. \[1\]

**Feature**

**Description**

HR management

Automates core HR functions as well as strategic HR activities such as talent management, employee evaluation, and learning management. 64% of PEO users we spoke to rate this feature as critical or highly important. 

Workforce management

A set of processes to optimize the productivity of its employees. 

PEO/ASO-specific features

Designed for professional employer organizations or administrative services organizations.

### Common PEO software features

**Feature**

**Description**

Attendance management

Manage attendance for classes, shifts, meetings, or events. 

Benefits management

Record employee's benefit plans and selections throughout career progression. 61% of PEO users we spoke to rate this feature as critical or highly important. 

Billing and invoicing

Create, manage, and send invoices or bills to customers.

Client management

Manage contact details and communication with clients.

Compliance management

Track and manage adherence to policies for any service, product, process, or supplier. 46% of PEO users we spoke to rate this feature as critical or highly important. 

Employee management

Track employee schedules, availability, and performance across projects and tasks. 51% of PEO users we spoke to rate this feature as critical or highly important. 

Onboarding

Process of familiarizing new clients, stakeholders, or employees with the company, a new location, or a service.

Payroll management

Track and manage the administration of all the processes, data, taxes, and records linked to employee salary and remuneration. All the PEO users we spoke to rate this feature as highly important. 

Recruitment management

Tools to find, assess, and hire suitable candidates for a job within an organization. 3% of PEO users we spoke to rate this feature as highly important. 

Time tracking

Measure and track time including hours worked and paid time off (PTO). 

Some PEOs may elect to buy separate HR systems with all the functionality they need and integrate them together, but we recommend investing in one comprehensive solution, if possible.

A comprehensive solution mitigates the risk of data becoming lost or corrupted while transferring between applications and provides a better experience for clients, who only have to learn and log in to one system.

## How to choose the right PEO software

When you start the process of checking out potential PEO solutions, you should detail all your requirements and categorize them based on their importance. Nice-to-have features, such as mobile access, can come at the very end. Therefore, the solutions you’re considering should address all your crucial needs first.

### Step 1: Define your requirements

Before you talk to a PEO software vendor, you must first ask important questions internally about your goals and constraints.

These include: Which features do you need and which ones do you merely want? What's your budget? If you're replacing an existing system, what have been the most significant pain points you want to remedy? What's your deadline to be up-and-running with new software?

You should also decide what sort of pricing structure works best for your organization. Here are some common pricing structures you can expect to run into:

**Perpetual license:** This is more common with on-premise systems that are hosted on your own server (as opposed to cloud-based software, which is hosted by the vendor and accessed through a web browser). You pay one large upfront cost to own the software indefinitely.

**Subscription (per employee, per month, or per user, per month):** Vendors may charge based on the number of employees in your organization or the number of employees total across all of your clients, so be sure to ask what they mean by "per employee."

**Freemium:** Some vendors offer a basic version of their platform for free and charge for extra functionality. Open source software is also "free" in the sense that it doesn't cost money to access the code, but there is still a significant investment in terms of IT deployment and maintenance.

### Step 2: Make a shortlist of PEO software

With so many PEO software options to choose from, it can be a challenge to narrow down the options that are right for your practice—but with the right resources and support, it doesn’t have to be.

At Software Advice, our advisors like Eschenburg have experience helping hundreds of EPOs and ASOs identify solutions that match their needs and budgets.

If you need guidance, you can chat online now with an advisor or [schedule a phone call](https://calendly.com/appointments-34/software-advice-appointment?month=2019-11). In just a few minutes, your advisor will help you identify a shortlist of options that align with your practice’s requirements.

### Step 3: Schedule vendor demos to help select your best option

Now that you’ve compiled a list of top choices, you should start scheduling vendor demos. These sessions help you explore features, understand pricing, and ultimately make the right investment. Preparation is key to getting the most out of these sessions.

#### How to prepare for vendor demos

Once you’ve compiled your shortlist of PEO software systems, schedule demo sessions with each vendor in order to learn more about their product. This is your chance to ask questions about PEO-specific features they offer, pricing, technical support, training tools, and anything else that might be an important factor in choosing the right system.

Some questions you should consider asking vendors in each demo include:

-   **What does your user interface look like?**
    

With an in-house system, you might be able to get away with a clunky interface if it gets the job done. Not so if you're a PEO. Clients will be using your system, too, so it's vital that whatever software you choose be intuitive and easy to use.

-   **Will your software play nice with client systems?**
    

Clients may have their own accounting or time tracking systems they want to use. If they can't easily integrate with your software, that will lead to headaches down the road.

-   **What support options are available?**
    

Talk to vendors extensively about the support options they offer and their associated costs. Also, be sure to understand how they will handle updates. The last thing you need is a client unexpectedly locked out of the system during maintenance.

Note: The screenshots of applications included in this article are examples to show a feature in context and are not intended as endorsements or recommendations. 

Note: Questions and responses have been edited for brevity and clarity_._

* * *

### About our contributors

#### Author

[Brian Westfall](https://www.softwareadvice.com/resources/author/brianwestfallsoftwareadvice-com/) is an associate principal analyst at Software Advice, covering human resources, with a focus on recruiting, talent management, and employee engagement. Over the past decade, Brian’s research on the intersection of talent and technology has been featured in Bloomberg, Fortune, SHRM, TIME, and The Wall Street Journal.

Brian’s research and analysis is informed by more than 250,000 authentic user reviews on Software Advice and over 20,000 interactions between \[Brand\] software advisors and HR software buyers. Brian also regularly analyzes market sentiment by conducting surveys of HR leaders and practitioners so he can provide the most up-to-date and helpful information to small and midsize businesses purchasing software or services.

#### Editor

**Parul Sharma** is a content editor at Software Advice with expertise in curating content for various niches, including SaaS, digital marketing, and search engine optimization. With over half a decade of experience in content writing and editing, Parul has the expertise to simplify complex terms into engaging, valuable content for targeted audiences. She completed her graduation and post-graduation in English literature from Delhi University and was awarded the Dr. Asha Sahni Memorial Award for being the highest scorer in her graduating class. 

Parul has contributed to the news, lifestyle, education, and health verticle of DNA India, India’s premier media channel. Outside of work, she can be found curating healthy recipes, coloring in mandala books, and spending quality time with her family.

#### Advisor

**Ryan Eschenburg** is a senior advisor. He joined Software Advice in 2014, and he is based in Austin, TX.

Ryan works directly with small-business leaders to connect them with best fit software providers. He assesses the technology needs of small businesses seeking HR and learning management software through one-to-one conversations and provides a short list of potential matches. 

His favorite part of being a software advisor is helping buyers ease their stress and save time during their software search.

* * *

### Source

1.  **Software Advice advisor call notes:** Findings are based on data from telephonic conversations that Software Advice’s advisor team had with small-to-midsize businesses seeking construction payroll tools. For this report, we analyzed phone interactions from July 31, 2023, to July 31, 2024.
    

## PEO FAQs

-   What does PEO stand for?
    
    PEO stands for professional employer organization. It’s a type of service provider that manages human resources operations for a business by entering into a co-employment relationship. A PEO typically oversees processes such as payroll and benefits administration, as well as anything related to compliance (e.g., workers compensation, tax law, and new hire reporting).
    
-   What is PEO software?
    
    PEO software enables professional employer organizations to manage and optimize HR operations for client businesses. PEO software includes functionality like payroll management, benefits management, and compliance reporting to support PEOs in managing global workforces.
    
-   What is the difference between HRIS and PEO?
    
    HRIS, or human resources information system, is a type of human resources software that prioritizes the collection, organization, and storage of employee data. It is typically used by HR professionals, while PEO software is typically used by PEOs to manage HR tasks for their clients.
    
-   What are the downsides of PEOs?
    
    As mentioned, PEOs can be cost-prohibitive. Some business owners are also uncomfortable with the idea of making employee data available to a third party or giving control of their HR and payroll processes to a third party.
    

## Related PEO Software

-   [Corporate Wellness Software](https://www.softwareadvice.com/corporate-wellness/)
-   [DEI (Diversity, Equity & Inclusion) Software](https://www.softwareadvice.com/diversity-equity-inclusion/)
-   [Employee Communication Tools Software](https://www.softwareadvice.com/employee-communication-tools/)
-   [Employee Engagement Software](https://www.softwareadvice.com/hr/employee-engagement-comparison/)
-   [Employee Recognition Software](https://www.softwareadvice.com/hr/employee-recognition-comparison/)
-   [Human Resources Software](https://www.softwareadvice.com/hr/)
-   [Internal Communications Software](https://www.softwareadvice.com/internal-communications/)
-   [Intranet Software](https://www.softwareadvice.com/intranet/)
-   [Org Chart Software](https://www.softwareadvice.com/org-chart/)