Justworks

US professional employer organization (PEO) and payroll service

Overview

Justworks combines HR software with a professional employer organization (PEO) model, under which Justworks becomes the co-employer of a client’s staff for payroll tax, benefits and compliance purposes. This gives small US employers access to group health insurance and other benefits that are typically priced for larger groups. Justworks also sells a payroll-only product without co-employment. Its pricing page lists the Payroll plan at US$8 per employee per month plus a US$50 monthly base fee, and the PEO Basic plan at US$79 per employee per month with no base fee; a PEO Plus tier adds medical, dental and vision administration.[20]

Justworks strengths and limitations

Strengths

  • Published per-employee pricing for payroll and PEO
  • PEO model provides access to group benefits
  • Payroll-only option for companies not wanting co-employment

Limitations

  • PEO fees are substantially higher than software-only HRIS pricing
  • Co-employment is a material legal arrangement to review before signing
  • US-focused service

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