Contact
Employee Portal

PEO vs. In-House HR:
What Does It Actually Cost?

Running a business doesn’t get easier as you grow—it gets busier. And HR is often where that pressure shows up first. Do we hire in-house HR… or partner with a PEO to handle payroll, benefits, and compliance?

Both options can work. But they come with very different costs—and the “salary” number is only part of the story.

Compare Your Costs
Schedule a No-Obligation Review

Serving Businesses Across

What You're Really Comparing

Most businesses don’t fall behind because they’re careless—it happens because HR grows in pieces. Payroll in one place, benefits somewhere else, compliance tracked “when needed,” and leadership filling the gaps. That setup can hold… until growth, turnover, or an audit makes the gaps expensive.

Hiring In-House HR

Hiring HR gives you someone close to the day-to-day: employee questions, culture, onboarding, and internal support.

But the true cost typically includes more than salary:

  • Taxes, benefits, and payroll burden
  • HR software and systems to run payroll/benefits/compliance
  • Outside help when issues get complex (legal, compliance, benefits guidance)
  • Coverage risk if your HR person is out—or leaves

Bottom line: In-house HR can be a great move, but it’s rarely “one hire and done.”

Partnering With a PEO

A PEO works through a co-employment model. That means:

You stay in control of your business operations, day-to-day management, and employee performance.

The PEO supports the HR administration side—like payroll processing, tax filings, benefits administration, compliance support, and risk management.

Instead of relying on one person, you gain access to a coordinated team and a structured system designed to keep things organized as your business changes.

A PEO can simplify HR and reduce risk without requiring you to build an internal department.

Free Cost Comparison Tool

PEO vs. In-House HR — Compare Your Costs

Enter your numbers below. Results update instantly.

WorkSmart Systems
1 Business Basics
No
Yes
2 In-House HR Costs

Covers employer taxes, health, retirement, overhead.

3 PEO Costs
Per Employee / Month
% of Payroll

Typical range: $100–$200 PEPM

PEOs often secure better group rates.

Results
In-House HR — Annual Total —
PEO — Annual Total —
In-House Cost / Employee —
PEO Cost / Employee —
— Enter your numbers to see results
HR salary (loaded)—
HRIS / software—
Compliance / legal—
Multi-state complexity—
PEO base fee—
Benefits savings (offset)—

Directional estimates only. Actual costs vary by industry, benefits, state requirements, and workflows.

We'll validate your numbers and highlight risk areas—no pressure.

Schedule a Consultation

Fill in your details and our team will reach out to walk through your numbers and answer any questions.

In-House HR — Annual Total—
PEO — Annual Total—
Employees—
Pricing Model—

Something went wrong. Please try again or call us directly.

✅

You're all set!

We've received your results and a member of the WorkSmart team will be in touch shortly to walk through the numbers with you.

This tool provides directional estimates. Actual costs vary by industry, benefits selections, state requirements, and internal workflows.
We’ll validate your assumptions, highlight risk areas, and help you compare options—no pressure.
Schedule a No-Obligation Cost Review
Small Business Growth Engine | WorkSmart Systems

Why WorkSmart Systems

WorkSmart Systems is Indiana’s leading locally owned Professional Employer Organization (PEO), serving businesses across Indiana, Ohio, Illinois, Michigan, and Kentucky.
We help small and mid-sized employers simplify HR, payroll, benefits, and compliance—so leadership can stay focused on running and growing the business.
Schedule a No-Obligation Conversation

Disclaimer: This information is for general educational purposes and does not constitute legal, tax, or accounting advice. Businesses should confirm compliance and reporting decisions with qualified advisors based on their specific situation.