PEO vs EOR — when does an EOR actually win?

EOR wins when you're hiring in a country (or US state) where you don't have a legal entity. Establishing a French or Brazilian entity to hire two engineers costs $50K–$200K and ongoing compliance overhead — an EOR (Deel, Remote, Velocity Global) handles it for 10–20% of salary. PEO doesn't help here; PEOs are US-only. Common pattern: PEO for US team + EOR for international hires running in parallel.

PEO vs ASO — when is administrative-only better?

ASO wins when you have existing benefits relationships you don't want to lose (your own broker, custom plan designs, locked-in carrier rates) or when you're large enough (typically 100+ EE) to negotiate competitive group benefits on your own. ASO costs $30–$80 PEPM versus PEO's $80–$220+, but you pay your own benefits at small-group rates and your own workers' comp at your standalone mod rate. For benefits-intensive sub-100 EE companies, PEO's master plan typically still wins on total cost.

PEO vs in-house HR — what's the crossover point?

Around 250 employees. A 4-person in-house HR function (director + generalist + payroll specialist + benefits coordinator) runs $420K–$540K loaded — comfortably supporting 250–500 EE. A PEO at mainstream $145 PEPM for 250 EE costs $435K/year. Below 250, PEO wins on cost and speed. Above 500, in-house typically wins on flexibility and cost. Between 250–500 is the genuinely-ambiguous zone where the decision is driven by M&A readiness, benefits flexibility, and cultural control more than direct cost.

PEO vs HR software stack — which is cheaper for a 50-person company?

The HR stack (Rippling/BambooHR + benefits broker + separate workers' comp + EPLI + your HR person's time) typically runs $67K–$128K/year for 50 employees. PEO mainstream tier all-in for 50 employees runs ~$130K Year 1. The stack is often cheaper on direct cost but excludes the value of PEO master-plan benefits buying power (15–30% lower health premiums) and pooled workers' comp. For knowledge-work in low-risk industries, the HR stack can genuinely win. For benefits-intensive or high-workers'-comp industries, PEO usually wins despite higher headline cost.

PEO vs payroll-only — when do I just need payroll?

Payroll-only wins for under-5-employee teams, contractor-heavy operations, or larger companies that already have strong benefits broker relationships and workers' comp coverage. ADP RUN / Paychex Flex / Gusto solo run $40–$60 base + $4–$15 per employee monthly — way cheaper than PEO, but they don't provide group benefits, workers' comp, or HR compliance support. The two often coexist: a 100-person company might use a payroll-only provider for 1099 contractors and a PEO for W-2 employees.

CPEO vs PEO — when does CPEO certification matter?

CPEO (IRS-certified PEO) certification matters in three specific ways: (1) the CPEO assumes sole liability for federal employment taxes — your company is not on the hook for IRS shortfalls, (2) no wage-base restart at mid-year transitions (Social Security and FUTA wage bases continue rather than reset), (3) federal tax credits (R&D, WOTC) remain with you instead of being absorbed. About 100 of the 700+ US PEOs hold CPEO status. We default to recommending CPEO unless there's a specific reason not to.

Can I use a PEO and an EOR at the same time?

Yes — and it's the most common pattern for growing companies with international teams. PEO handles your US W-2 employees (payroll, benefits, workers' comp, compliance). EOR handles your international employees (country-by-country employment, in-country benefits, local tax). The two systems run in parallel without conflict. Most accounting and HR teams find the dual-vendor pattern manageable until 500+ employees.

PEO vs benefits broker — can a broker do what a PEO does?

No. A benefits broker negotiates and places your group health insurance — they don't handle payroll, workers' comp, HR compliance, ACA reporting, or any of the other PEO bundle. A broker is one piece of an "HR stack" approach. PEO bundles the broker function (via its master plan negotiations) plus payroll plus compliance plus workers' comp under one vendor. The right comparison isn't broker-vs-PEO; it's HR-stack-vs-PEO.

When should I stop using a PEO and bring everything in-house?

Typically between 250–500 employees. The triggers: (1) PEO PEPM × headcount exceeds the cost of a 4–5 person in-house HR team, (2) M&A activity becomes likely and acquirers want clean HR data ownership, (3) you've outgrown the PEO master plan benefits flexibility, (4) your scale gives you competitive negotiating power with carriers directly. The transition takes 12–18 months end-to-end — start planning at 200 EE if you expect to be at 500+ in 24–36 months.

PEO vs HRO — what's the difference?

HRO (HR Outsourcing) is an umbrella term that includes PEO, ASO, and "managed HR services" in various flavors. PEO is the specific HRO model that uses co-employment. ASO is the HRO model that doesn't. When a vendor calls itself an "HRO" without specifying, ask whether they're a CPEO, a non-certified PEO, an ASO, or a managed-services provider — the answer changes the contract structure, liability allocation, and pricing model meaningfully.

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