--- title: "PEO VS Payroll Services: Which one is right for my business?" description: "Learn which is better: PEO VS Payroll Services. Get a better idea of what will work for your business." image: https://blog.proliant.com/hubfs/PEO%20vs%20Payroll%20Company.png --- [![Proliant - Print Logo - No Strokes](https://blog.proliant.com/hubfs/01%20-%20Website/Logos/Proliant%20-%20Print%20Logo%20-%20No%20Strokes.svg "Proliant - Print Logo - No Strokes")](https://www.proliant.com) [Request Meeting](https://www.proliant.com/request-meeting) ** ** **Payroll** **Talent** **Workforce Management** **Benefits** **Platform** **Integrations** **ProLiant Mobile** Your employees can stay connected. **Anytime, anywhere**. ![proliant-mobile-mockup-mega-menu](https://blog.proliant.com/hubfs/01%20-%20Website/4%20-%20Main%20Pages/Home/proliant-mobile-mockup-mega-menu.png "proliant-mobile-mockup-mega-menu") [![Proliant - Print Logo - No Strokes](https://blog.proliant.com/hubfs/01%20-%20Website/Logos/Proliant%20-%20Print%20Logo%20-%20No%20Strokes.svg "Proliant - Print Logo - No Strokes")](https://www.proliant.com) [Request Meeting](https://www.proliant.com/request-meeting) ** ** **Payroll** **Talent** **Workforce Management** **Benefits** **Platform** **Integrations** **ProLiant Mobile** Your employees can stay connected. **Anytime, anywhere**. ![proliant-mobile-mockup-mega-menu](https://blog.proliant.com/hubfs/01%20-%20Website/4%20-%20Main%20Pages/Home/proliant-mobile-mockup-mega-menu.png "proliant-mobile-mockup-mega-menu") Search **Menu** ** ** [Request Meeting](https://www.proliant.com/request-meeting) ![](https://blog.proliant.com/hubfs/PEO%20vs%20Payroll%20Company.png) [Payroll](https://blog.proliant.com/topic/payroll) | 3 min read # PEO Vs Payroll Services [![ProLiant](https://blog.proliant.com/hubfs/Logos/Color%20Proliant/P%20logo%20Glassdoor.jpg)](https://blog.proliant.com/author/proliant) Written by [ProLiant](https://blog.proliant.com/author/proliant) Feb 2, 2023 3:41:08 PM As your business grows, it becomes necessary to outsource many administrative tasks, such as payroll. However, finding a company to help can be challenging. Ultimately, you will have to decide between hiring a payroll company or a professional employer organization (PEO). . In this article, we’ll go over your options so that you can get a better idea of what will work for your business.  ## Outsourcing Payroll to a Payroll Company Outsourcing payroll refers to hiring an outside company to manage payroll. Many payroll companies provide a variety of services, including:  - Payroll - Payroll Tax Services - Paycheck Issuance - Time and Attendance Tracking - Recordkeeping - Reporting and Analytics - Direct Deposit - Earned Wage Access - Employee Self-Service When you outsource payroll, you work with a payroll company as a client, retaining all autonomy and control over your employees and HR functions.  Each payroll company will offer varying ranges of services. Check out our recent blog article on [how to choose a payroll company](https://blog.proliant.com/online-payroll-services-for-small-businesses).  ### **Why Do Businesses Outsource to Payroll Companies? ** Outsourcing payroll allows business owners to focus on other aspects of running their business. Here are a few ways outsourcing payroll helps make things easier for business owners:  - **No more compliance headaches or payroll errors** When a business grows, it needs to hire many different kinds of employees, which means keeping up with a lot of rules and regulations. Payroll companies can guarantee accuracy and compliance so business owners don’t have to worry.  - **Time-saving tools ** Managing payroll is a massive time commitment. Business owners can save hundreds of hours by outsourcing to a payroll company, which means more time to focus on other aspects of running a business.  - **Help from experts** Payroll companies employ professional payroll and payroll tax experts that can answer questions and help employers gather the data necessary to run successful payrolls and manage taxes.  - **Reporting and analytics** Outsourcing payroll can also help employers gather essential information in one central location, often offering tools that help analyze the data in order to inform hiring, recruitment, and other business decisions.  ## Using PEOs A [PEO](https://blog.proliant.com/peo-service-provider) can help smaller and mid-sized businesses focus on growth instead of managing employees. A PEO is responsible for all aspects of payroll processing, including calculating wages, withholding taxes, and remitting payments to the appropriate government agencies.  A PEO offers a range of business services similar to what can be provided by payroll companies, in addition to benefits administration and HR tools. However, these organizations act as a partner with a co-employment arrangement. As a result, your business operates under the PEO’s FEIN instead of your own.  **What are the cons of using a PEO?**  Businesses often decide to work with a PEO because they are typically inexpensive and can easily delegate HR and payroll tasks. However, under a PEO, a company loses autonomy because it is operating under the PEO’s FEIN.  Also, if you work with a PEO, it can become difficult to communicate with employees, and you have less control over HR functions. This can lead to poor communication throughout your organization, which contributes to lower employee satisfaction and higher turnover.  **Moving Away from a PEO** When a business employs more than 20 to 50 full-time employees, it’s probably time to consider moving on. This is because as a company grows, it becomes more and more essential to manage HR functions internally.  It can be expensive to leave a partnership with a PEO, but Proliant can help by working with financial advisors, brokers, and other partners to untangle PEO services and help you regain autonomy.  ## Proliant is a Payroll and HR Company that Will Grow with Your Business Proliant is a full-service payroll and HR company with the tools you need to streamline your administrative tasks. Not only do we assume the responsibility for your payroll, but also our solutions can streamline other areas of your business, like Human Resources.   Our worry-free [online payroll services](https://www.proliant.com/payroll-services) includes the following must-have features:  **Verification Testing and Accurate Processing:** Accuracy and compliance are ensured through the verification testing feature that identifies inaccuracies before payroll is submitted.  **Reporting and Analytics:** These tools help with year-end reporting, comparative benchmarking, custom calculations, approval flows, and more.  **Self-Service Tools:** These tools allow managers and employees to access important information without the help of payroll or HR teams.  **Integrations:** Our solution integrates with many of the general ledger or time-tracking software you already use. **Service and Support:** Proliant offers unprecedented U.S.-based support with no call centers and a dedicated point of contact to provide high-touch service to each client.  When you are ready to grow, Proliant is here for you. We offer various tools that can be added on to your payroll solution as your business expands and needs change:  - Applicant Tracking and Recruitment - Employee Onboarding - HR & Benefits Administration - Performance Management - Time & Labor Management - ReadyPay Today (Earned Wage Access)  [Request a meeting](https://blog.proliant.com/cs/c/?cta_guid=bc179ddc-d265-4d45-b87a-8b9acae605c6&signature=AAH58kGiDzex4q3CE2kkPMy2SLwekWD_jw&pageId=92718913287&placement_guid=c9ad4a8e-8850-40c6-a8c0-56ef7369e5a1&click=b73a1668-e4ce-4778-b60a-473327c9bf76&hsutk=c7c3cebf16548bc31014add0282e75f2&canon=https%3A%2F%2Fblog.proliant.com%2Fonline-payroll-services-for-small-businesses&utm_referrer=https%3A%2F%2Fwww.google.com%2F&portal_id=426846&redirect_url=APefjpGi_rhHC_58OafeIaQ3IJ-2HSuCpdeXjm7BI7KdI3P1QW98BMMzDcArdw-hrXFbeaamJW6HlzjstPqpmT2HnOkUKqrmei9ivQuAQ6rO6GPjIkBJFgAb403dCh06BAsXtVXT7k5hJpiPlC_DWvVcIDYwyTTv9q_-UczmQlGUl74a2FN9WQZzB_0G8Wc7h7FynYEFsdphHEY7Ab1S243EGijmIQEWX0MWpvZZ3O8N4w9Doc9aQ4ZCOEEo8h51FACbLf3K8pU7a_pSYgzvNp2sDpIz6yb9ig&__hstc=11825963.c7c3cebf16548bc31014add0282e75f2.1645125496338.1674585356314.1674601174805.423&__hssc=11825963.5.1674601174805&__hsfp=1783371966&contentType=blog-post) with one of our payroll and HR professionals to learn more about worry-free payroll processing and solutions to streamline your administrative processes.  ### About ProLiant *ProLiant puts the human in human resources. We provide a fully integrated, cloud-based HCM solution that simplifies payroll and HR processes. The company serves small to large clients in multiple industries in all 50 states and is committed to providing the highest quality customer service in the industry.* ### Subscribe to Blog - [Recent](https://blog.proliant.com/peo-vs-payroll-services#recent) - [Topics](https://blog.proliant.com/peo-vs-payroll-services#topics) - [Archive](https://blog.proliant.com/peo-vs-payroll-services#archive) - [Applicant Tracking & Recruitment (15)](https://blog.proliant.com/topic/applicant-tracking-recruitment) - [Automation & Workflows (5)](https://blog.proliant.com/topic/automation-workflows) - [Benefits Administration (14)](https://blog.proliant.com/topic/benefits-administration) - [Compliance (1)](https://blog.proliant.com/topic/compliance) - [Earned Wage Access (12)](https://blog.proliant.com/topic/earned-wage-access) - [Employee Onboarding (9)](https://blog.proliant.com/topic/employee-onboarding) - [HR (32)](https://blog.proliant.com/topic/hr) - [Industry News (11)](https://blog.proliant.com/topic/industry-news) - [Integrations (5)](https://blog.proliant.com/topic/integrations) - [Learning Management System (4)](https://blog.proliant.com/topic/learning-management-system) - [Payroll (30)](https://blog.proliant.com/topic/payroll) - [Performance Management (11)](https://blog.proliant.com/topic/performance-management) - [Recruitment & Retention (12)](https://blog.proliant.com/topic/recruitment-retention) - [Security (1)](https://blog.proliant.com/topic/security) - [Tax Services (8)](https://blog.proliant.com/topic/tax-services) - [Time & Labor Management (1)](https://blog.proliant.com/topic/time-labor-management) - [Toast (1)](https://blog.proliant.com/topic/toast) [More...](https://blog.proliant.com/peo-vs-payroll-services#) - [June 2026 (1)](https://blog.proliant.com/archive/2026/06) - [April 2026 (1)](https://blog.proliant.com/archive/2026/04) - [February 2026 (1)](https://blog.proliant.com/archive/2026/02) - [December 2025 (1)](https://blog.proliant.com/archive/2025/12) - [October 2025 (1)](https://blog.proliant.com/archive/2025/10) - [July 2025 (2)](https://blog.proliant.com/archive/2025/07) - [June 2025 (1)](https://blog.proliant.com/archive/2025/06) - [May 2025 (1)](https://blog.proliant.com/archive/2025/05) - [April 2025 (1)](https://blog.proliant.com/archive/2025/04) - [March 2025 (1)](https://blog.proliant.com/archive/2025/03) - [February 2025 (1)](https://blog.proliant.com/archive/2025/02) - [January 2025 (1)](https://blog.proliant.com/archive/2025/01) - [November 2024 (1)](https://blog.proliant.com/archive/2024/11) - [October 2024 (4)](https://blog.proliant.com/archive/2024/10) - [September 2024 (2)](https://blog.proliant.com/archive/2024/09) - [August 2024 (4)](https://blog.proliant.com/archive/2024/08) - [June 2024 (1)](https://blog.proliant.com/archive/2024/06) - [May 2024 (2)](https://blog.proliant.com/archive/2024/05) - [April 2024 (3)](https://blog.proliant.com/archive/2024/04) - [March 2024 (1)](https://blog.proliant.com/archive/2024/03) - [February 2024 (1)](https://blog.proliant.com/archive/2024/02) - [January 2024 (1)](https://blog.proliant.com/archive/2024/01) - [December 2023 (1)](https://blog.proliant.com/archive/2023/12) - [November 2023 (2)](https://blog.proliant.com/archive/2023/11) - [October 2023 (8)](https://blog.proliant.com/archive/2023/10) - [September 2023 (5)](https://blog.proliant.com/archive/2023/09) - [August 2023 (1)](https://blog.proliant.com/archive/2023/08) - [July 2023 (3)](https://blog.proliant.com/archive/2023/07) - [June 2023 (6)](https://blog.proliant.com/archive/2023/06) - [May 2023 (4)](https://blog.proliant.com/archive/2023/05) - [April 2023 (2)](https://blog.proliant.com/archive/2023/04) - [March 2023 (2)](https://blog.proliant.com/archive/2023/03) - [February 2023 (3)](https://blog.proliant.com/archive/2023/02) - [January 2023 (1)](https://blog.proliant.com/archive/2023/01) - [December 2022 (3)](https://blog.proliant.com/archive/2022/12) - [November 2022 (2)](https://blog.proliant.com/archive/2022/11) - [October 2022 (1)](https://blog.proliant.com/archive/2022/10) - [September 2022 (1)](https://blog.proliant.com/archive/2022/09) - [August 2022 (5)](https://blog.proliant.com/archive/2022/08) - [July 2022 (2)](https://blog.proliant.com/archive/2022/07) - [June 2022 (2)](https://blog.proliant.com/archive/2022/06) - [May 2022 (6)](https://blog.proliant.com/archive/2022/05) - [April 2022 (5)](https://blog.proliant.com/archive/2022/04) - [March 2022 (4)](https://blog.proliant.com/archive/2022/03) - [February 2022 (3)](https://blog.proliant.com/archive/2022/02) - [January 2022 (3)](https://blog.proliant.com/archive/2022/01) - [December 2021 (3)](https://blog.proliant.com/archive/2021/12) - [November 2021 (2)](https://blog.proliant.com/archive/2021/11) - [October 2021 (2)](https://blog.proliant.com/archive/2021/10) - [September 2021 (1)](https://blog.proliant.com/archive/2021/09) - [August 2021 (1)](https://blog.proliant.com/archive/2021/08) - [July 2021 (3)](https://blog.proliant.com/archive/2021/07) - [October 2020 (1)](https://blog.proliant.com/archive/2020/10) - [September 2020 (1)](https://blog.proliant.com/archive/2020/09) - [August 2020 (1)](https://blog.proliant.com/archive/2020/08) - [June 2020 (2)](https://blog.proliant.com/archive/2020/06) - [January 2020 (3)](https://blog.proliant.com/archive/2020/01) - [December 2019 (4)](https://blog.proliant.com/archive/2019/12) - [November 2019 (3)](https://blog.proliant.com/archive/2019/11) - [October 2019 (1)](https://blog.proliant.com/archive/2019/10) - [September 2019 (1)](https://blog.proliant.com/archive/2019/09) - [July 2019 (2)](https://blog.proliant.com/archive/2019/07) - [June 2019 (4)](https://blog.proliant.com/archive/2019/06) - [May 2019 (11)](https://blog.proliant.com/archive/2019/05) - [April 2019 (3)](https://blog.proliant.com/archive/2019/04) - [January 2019 (1)](https://blog.proliant.com/archive/2019/01) - [December 2018 (1)](https://blog.proliant.com/archive/2018/12) - [November 2018 (1)](https://blog.proliant.com/archive/2018/11) - [August 2018 (1)](https://blog.proliant.com/archive/2018/08) - [February 2018 (2)](https://blog.proliant.com/archive/2018/02) - [January 2018 (3)](https://blog.proliant.com/archive/2018/01) - [November 2017 (1)](https://blog.proliant.com/archive/2017/11) - [October 2017 (2)](https://blog.proliant.com/archive/2017/10) - [August 2017 (2)](https://blog.proliant.com/archive/2017/08) - [May 2017 (1)](https://blog.proliant.com/archive/2017/05) - [March 2017 (1)](https://blog.proliant.com/archive/2017/03) - [January 2017 (1)](https://blog.proliant.com/archive/2017/01) - [August 2016 (2)](https://blog.proliant.com/archive/2016/08) - [April 2016 (1)](https://blog.proliant.com/archive/2016/04) - [March 2016 (1)](https://blog.proliant.com/archive/2016/03) - [February 2016 (1)](https://blog.proliant.com/archive/2016/02) - [October 2015 (2)](https://blog.proliant.com/archive/2015/10) - [July 2015 (1)](https://blog.proliant.com/archive/2015/07) [More...](https://blog.proliant.com/peo-vs-payroll-services#) Previous Story [← How to Create an Effective Talent Management Strategy](https://blog.proliant.com/how-to-create-an-effective-talent-management-strategy) [** ](https://blog.proliant.com/) Next Story [Will the Great Resignation End in 2023? →](https://blog.proliant.com/the-great-resignation-2023) ## You May Also Like These Stories on Payroll [![](https://blog.proliant.com/hubfs/03%20-%20Blog%20Images/01%20-%20Proliant%20Blog/01%20-%20Feature%20Images/Innovations%20in%202025%20That%20Shaped%20HR%20%26%20Payroll.jpg) ](https://blog.proliant.com/innovations-in-2025-that-shaped-hr-payroll) [HR](https://blog.proliant.com/topic/hr) ### [Innovations in 2025 That Shaped HR & Payroll](https://blog.proliant.com/innovations-in-2025-that-shaped-hr-payroll) Oct 2, 2025 10:51:53 AM | 2 min read [![](https://blog.proliant.com/hubfs/03%20-%20Blog%20Images/01%20-%20Proliant%20Blog/01%20-%20Feature%20Images/How%20No%20Tax%20on%20Tips%20and%20Overtime%20Affects%20Businesses.jpg) ](https://blog.proliant.com/how-no-tax-on-tips-and-overtime-affects-businesses-what-employers-need-to-know) [Payroll](https://blog.proliant.com/topic/payroll) ### [How No Tax on Tips and Overtime Affects Businesses: What Employers Need to Know](https://blog.proliant.com/how-no-tax-on-tips-and-overtime-affects-businesses-what-employers-need-to-know) Jul 17, 2025 9:32:59 AM | 6 min read [![](https://blog.proliant.com/hubfs/03%20-%20Blog%20Images/01%20-%20Proliant%20Blog/01%20-%20Feature%20Images/Our%20Top%20Six%20Features%20To%20Look%20For%20in%20a%20Mobile%20App%20for%20HR%20and%20Payroll.jpg) ](https://blog.proliant.com/our-top-six-features-to-look-for-in-a-mobile-app-for-hr-and-payroll) [Payroll](https://blog.proliant.com/topic/payroll) ### [Our Top Six Features To Look For in a Mobile App for HR and Payroll](https://blog.proliant.com/our-top-six-features-to-look-for-in-a-mobile-app-for-hr-and-payroll) Jul 7, 2025 12:04:03 PM | 2 min read ** ### Subscribe by Email ## No Comments Yet Let us know what you think [![proliant-white-logo-no-strokes](https://blog.proliant.com/hs-fs/hubfs/0%20-%20Proliant%20Branding/ProLiant%20Logos/proliant-white-logo-no-strokes.png?width=205&height=40&name=proliant-white-logo-no-strokes.png "proliant-white-logo-no-strokes")](https://www.proliant.com/) **Headquarters** 1100 Abernathy Road, Suite 850 Atlanta, GA 30328 877.896.9523 [Need Help?](https://www.proliant.com/contact-us) [Login](https://www.readypayonline.com/Proliant/Login/Login.aspx?) Copyright © 2022 Proliant, Inc. All Rights Reserved. #### Solutions [Applicant Tracking & Recruitment](https://www.proliant.com/applicant-tracking-recruitment) [Time & Labor Management](https://www.proliant.com/time-labor-management) [HR & Benefits Administration](https://www.proliant.com/hr-benefits-administration) [Employee Onboarding](https://www.proliant.com/onboarding) [Online Payroll Services](https://www.proliant.com/payroll-services) [Payroll Tax Services](https://www.proliant.com/payroll-tax-services) [Performance Management](https://www.proliant.com/performance-management) [ReadyPay Today](https://www.proliant.com/readypaytoday) [Learning Management System](https://www.proliant.com/learning-management-system) #### Who We Serve [Your Industry](https://www.proliant.com/your-industry) [Integrations](https://www.proliant.com/integrations) [Partners](https://www.proliant.com/partners) #### Why Proliant [About Us](https://www.proliant.com/about-us) [News](https://blog.proliant.com/inthenews) [Careers](https://www.proliant.com/careers) [Automation](https://www.proliant.com/payroll-automation) [Workflows](https://www.proliant.com/hr-workflows) [Services](https://www.proliant.com/services) #### Legal [Legal](https://www.proliant.com/legal-notices) [Terms](https://www.proliant.com/terms-of-use) [Privacy](https://www.proliant.com/privacy-policy) [Form 1095-C Notice](https://www.proliant.com/employee-1095c-notice)