The document compares the costs of three PEO (Professional Employer Organization) competitors to provide payroll and benefits administration for a company. PEO 1 provides the largest savings at 15% below the company's current annual costs. PEO 2 offers savings of 8% while PEO 3 offers savings of 23%. PEO 1 has the lowest total annual cost to the company at $349,569 while PEO 3 has the highest total annual cost at $309,662.

1. PEO Analysis Cost Comparison (Employer Funding - 100% of the Medical Low Plan Single Rate)
PEO Competitor
15% 8% 23%
Savings Savings Savings
Included in billing rate $15,935.40 $24,720.60 $16,454.40
Included in billing rate $8,324.27 $8,340.52 $8,613.89
Included Included Included Included
Included Included $2,527.20 Included
Included Included *see PEO Benefits & Fees *see PEO Benefits & Fees
Included Included Included Included
Included Included *see PEO Benefits & Fees Included
Included Included Included Included
Annual Business Cost
Business Cost #1
Business Cost #2
Business Cost #3
Business Cost #4
Business Cost #5
Business Cost #6
Business Cost #7
Business Cost #8
Business Cost #9 Included in billing rate $54,000.00 $32,292.00 $51,744.00
$141,064.38 $78,259.67 $67,880.32 $76,812.29
$246,960.00 $250,448.15 $280,952.42 $212,816.80
$10,493.28 $16,926.00 $9,514.56 $13,151.28
Employee Paid *see Vision Comparison *see Vision Comparison *see Vision Comparison
$2,304.00 $3,936.00 $2,284.80 $2,336.16
$5,022.72 *see Notes $11,207.88 $6,516.24
$3,060.48 *see Notes $5,702.40 $6,459.12
$1,592.12 $0.00 $0.00 $0.00
$269,432.60 $271,310.15 $309,662.06 $241,279.60
$410,496.98 $349,569.82 $377,542.38 $318,091.89
$60,927.16 $32,954.60 $92,405.09
Total PEO Cost
Annual Benefits Cost
Medical (Funding - 100% ER Paid for the Low Plan
Single Rate) Dental (Aetna Plan)
Vision (VSP Plan)
Life and AD&D Insurance ($50,000 Basic Policy)
Long Term Disability (60% up to $10,000/month-90 days)
Short Term Disability (60% up to $2,500/week-13 weeks)
Hidden Fee #1
Total Benefits Cost
Combined Business & Benefits Cost
1st Year Investment / Savings
One-time Implementation Fee $3,600.00 n/a $5,625.00
PEO #1 PEO #2 PEO #3
XYZ Corp
PEO Analysis for XYZ Corp