PEOs typically charge $150 to $250 per employee per month, depending on headcount, state, and benefit selections. For a 20-person company, that's $36,000 to $60,000 annually before any additional admin fees.
The modern alternative is a lightweight stack: an HRIS like Gusto or BambooHR ($8-$12/employee/month) plus fractional HR support from a senior consultant ($1,199-$4,999/month). This gives you control, flexibility, and senior expertise at roughly half the PEO cost.
PEOs become cost-inefficient around 15-25 employees. At that headcount, the per-employee administrative fee exceeds the cost of a dedicated HRIS plus fractional HR support, while locking you into the PEO's benefit providers and policies.
Fractional HR from TalentForge360 starts at $1,199 per month, month-to-month. Combined with a modern HRIS at ~$10/employee/month, a 20-person company pays roughly $25,000/year versus $40,000-$50,000 for a PEO.