PEO companies in Texas

Advertised prices, verified

How to run the comparison

1. Filter to licensed operators. Every PEO with covered employees in Texas must hold a license from the Texas Department of Licensing and Regulation under Labor Code Chapter 91. TDLR's register and its published enforcement actions are public, so the first cut of any shortlist is mechanical: on the register, no sanctions, or out of consideration.
2. Normalize the pricing model. Quotes arrive as a percentage of payroll or a flat per-employee monthly fee, with benefits, workers' compensation and unemployment costs passing through on top. Convert every quote to dollars per employee per month with the administrative fee itemized separately, or you will be comparing incomparable numbers.
3. Pin down the workers' compensation structure. Because Texas lets most private employers go without workers' compensation, some PEO offers include full coverage through the PEO's program and others are non-subscriber structures with alternative benefit plans. The difference changes your litigation exposure, so it has to be established before price is even relevant.
4. Check federal certification and sign. Ask each finalist whether it is an IRS-certified PEO and verify against the IRS's published CPEO list; certification determines who is liable for federal employment taxes if deposits fail. Then read the co-employment agreement for exactly which employer duties transfer, and reconcile the first invoice against the quote.

What the Texas market looks like

The national PEOs compete in Texas on benefits buying power: pooled group plans that a company with twenty employees could not get priced alone, plus multi-state payroll for clients with footprints beyond Texas. Regional Texas PEOs compete on underwriting flexibility and service, often taking industries the nationals decline, and construction-adjacent and energy-sector employers in particular tend to end up with specialists comfortable with their risk profiles.

License data gives a sense of scale: state materials counted several hundred licensees in recent years, spanning full licenses and the limited licenses available to smaller out-of-state operators. That is a wide field, and it is why running the comparison on verified evidence rather than sales collateral matters; the vendors that publish pricing are in the table on this site with each figure linked to the vendor page it was read from.

Where PEO stops fitting

Co-employment earns its fee for small and mid-sized Texas employers who want benefits leverage and someone else running employment administration. It stops fitting at scale, when your own negotiated benefits and an internal payroll function undercut per-employee fees, and it does not cover international hiring at all; an employee in another country needs an employer of record, a different product with its own comparison table on this site.

Whatever you choose, the co-employment agreement is the controlling document: which duties transfer, how the fee is calculated, what happens at exit. Nothing on this page is legal or tax advice; it is a map of the market and the evidence, and the contract and the statutes decide the rest.

Common questions

How many PEO companies operate in Texas?

State licensing materials have counted several hundred TDLR licensees in recent years, from national firms to single-metro operators. The public register is the authoritative list at any given moment.

What do PEO companies in Texas charge?

Published administrative pricing clusters as either a percentage of payroll or a flat per-employee monthly fee, with benefits and workers' compensation passing through on top. The table on this site shows the verified published figures with a link to each vendor's own page.

Is workers' compensation included with a Texas PEO?

Not necessarily. Texas does not require most private employers to carry it, so offers come as covered or non-subscriber structures. Establish which one a quote contains before comparing anything else.

Are Texas PEOs responsible for payroll taxes?

Under Chapter 91 the co-employment contract must place responsibility for wage payment and payroll tax collection and remittance on the PEO for covered employees. Federal liability turns on IRS CPEO certification, which you can verify on the IRS's published list.

Coverage by country

• Employer of record vendors covering Singapore
• Employer of record vendors covering Mexico
• Employer of record vendors covering Spain
• Employer of record vendors covering Colombia
• Employer of record vendors covering United Kingdom
• Employer of record vendors covering France
• Employer of record vendors covering Hungary
• Employer of record vendors covering New Zealand