SFDIFY
A PEO (professional employer organization) is a US co-employment arrangement: you keep your own US entity, and the PEO shares employer duties such as payroll, benefits and compliance [1]. An employer of record (EOR) becomes the legal employer of your people in countries where you have no entity [2]. In the PEO vs EOR decision, hiring at home through your own company points to a PEO, and hiring abroad without an entity points to an EOR. Published starting prices run from $79 to $125 per employee per month for a PEO and $599 per employee per month for an EOR at Justworks, Deel and Remote [3, 4, 5].
Both models bundle payroll, benefits and compliance into one monthly fee, so they look alike from a distance. They answer two different questions, though: who is the legal employer, and where can the employee work? This guide explains the difference, then compares four providers that sell one or both: Deel, Rippling, Justworks and Remote.
PEO vs EOR: the core difference
Who the employer is. With a PEO, you and the provider are co-employers. Justworks describes a model "where the PEO is listed as a co-employer," while you "maintain full control over hiring decisions, running your team, and handling business operations" [6]. Deel calls its PEO "a US-only service that uses a co-employment model and shares compliance liability" [1]. With an EOR, the provider employs the worker outright. Remote says an EOR "becomes the legal employer for your team in countries where you don't have an entity" [2], and Deel says an EOR "assumes full compliance liability" [1].
Whether you need an entity. This is usually the deciding question. In Deel's words, "An EOR doesn’t require a legal entity in the country you’re hiring, while you do need a US legal entity with a PEO" [1]. Rippling notes that setting up a local entity "can take 6–12 months," which is the wait an EOR is meant to avoid [7].
Where it works. A PEO is a domestic product. Justworks says its PEO can support a US-based team "in all 50 states" [6], and Deel's US PEO also covers "all 50 US states" [4]. An EOR is a cross-border product, and country coverage differs a lot by provider, as the table below shows.
Why companies use a PEO at all. The main draw is pooled benefits. Rippling explains that co-employment "pools your employees with Rippling’s broader client base, so a small business can offer big-company benefits" such as medical, dental, vision and 401(k) [8].
What it costs in general. Deel's PEO page says PEOs usually charge either a fixed fee, "usually around $1,000 per employee annually," or "a percentage of your overall payroll, usually 2-11%" [1]. EOR fees are higher, since the provider carries the whole employment. Every vendor below that publishes an EOR price lists it at $599 per employee per month [4, 3, 5].
A simple rule of thumb:
- US employees, your own US entity, and you want better benefits with less admin: a PEO.
- An employee in a country where you have no entity: an EOR.
- Both at once: a vendor that sells both, so everyone sits in one system.
How we chose
We compared four providers a US founder is likely to shortlist for one or both models: Deel, Rippling, Justworks and Remote. For each, we looked at what it sells (PEO, EOR or both), published starting prices, stated country coverage, and anything in the fine print that changes the real cost. Everything here comes from the vendors' own homepages, pricing pages and PEO or EOR pages, checked on November 8, 2026. We did not test the products hands-on, and the prices are "starting at" figures, so a quote for your company can differ.
Employer of record vs PEO providers at a glance
| Product | Best for | Starting price | Notable |
|---|---|---|---|
| Deel | Hiring abroad, with a US PEO from the same vendor | EOR $599 per employee/month; US PEO $125 per employee/month [4] | EOR in "130+ countries"; month-to-month pricing [4] |
| Rippling | PEO or EOR inside one HR, IT and finance system | Plans "start at $8 per employee per month, with a monthly base fee"; custom quote [9] | EOR in 115 countries [7] |
| Justworks | US small businesses that want a simple PEO | PEO Basic $79, PEO Plus $124 per employee/month; EOR add-on $599 [3] | "IRS-certified and ESAC-accredited" PEO [6] |
| Remote | EOR plus a US PEO, both with list prices | EOR $599 per employee/month on annual contracts; PEO $99 per employee/month [5] | EOR in "90+ countries"; no setup or onboarding fees [5] |
Deel — EOR-first, with a US PEO alongside
Deel sells both models: its pricing page lists the EOR and a US PEO side by side [4].
Verified features: Deel lists "Full legal employment in 130+ countries globally" for its EOR and "Co-employment across all 50 US states with benefits included" for its US PEO [4]. On its EOR page, Deel says it owns "entities and payroll engine in 130+ countries" [10].
Pricing: EOR starts at $599 per employee per month and the US PEO at $125 per employee per month [4]. Deel says it "offers flexible month-to-month pricing with no long-term commitments required" [4]. A current PEO promotion credits three free months only on order forms with "minimum two (2) year terms," and a customer who terminates early must pay full list price for the whole term, including the credit [4].
Strengths: One vendor for both models, so a company with a US team and a few hires abroad can keep everyone on one platform. Both prices are public, and its stated EOR coverage is the largest here.
Limitations: Deel's US PEO starts higher than the published PEO prices from Justworks ($79) and Remote ($99) [3, 5]. The PEO promotion trades three free months for a two-year commitment, which cuts against the month-to-month terms on the rest of the price list.
Best fit: Companies whose main need is hiring outside the US and who want their US staff on the same system. If you are weighing Deel against Rippling more broadly, see our Deel vs Rippling comparison.
Rippling — PEO and EOR inside a wider workforce platform
Rippling offers both a PEO and an EOR, and it builds the PEO layer "into the same platform as payroll, IT, HR and finance" [8].
Verified features: Rippling PEO covers "payroll processing, benefits administration, workers’ compensation, HR compliance support, and access to PHR and SHRM certified experts" [8]. Its EOR handles "the legal, compliance, and payroll complexity in 115 countries," and if you later open your own entity in a country, Rippling "can convert EOR employees to direct hires without re-onboarding" [7].
Pricing: Rippling does not publish PEO or EOR prices. Its pricing page says plans "start at $8 per employee per month, with a monthly base fee," that the total depends on the products you choose, and that you should contact sales "for a custom quote" [9].
Strengths: Employment sits next to IT and finance in one system, with a stated path from EOR to your own entity.
Limitations: No public price for either the PEO or the EOR, so you cannot compare cost without a sales call. Its stated EOR coverage of 115 countries is below Deel's 130+ [7, 4].
Best fit: Companies that already want one system for HR, IT and finance and are comfortable negotiating price.
Justworks — a published-price US PEO, with EOR as an add-on
Justworks is built around the small-business PEO, and it says its PEO is "IRS-certified and ESAC-accredited" [6].
Verified features: Justworks says its PEO can support "your entire US-based team in all 50 states" [6]. PEO Plus adds "Medical, Dental, Vision Administration," HSA/FSA accounts, and mental health and fertility benefits on top of PEO Basic [3]. For hires abroad, Justworks sells an EOR add-on at $599 per month per employee, "Available in Basic and Plus plans" [3].
Pricing: PEO Basic is $79 and PEO Plus is $124 per employee per month, both with "No base fee" [3].
Strengths: The lowest published PEO starting price in this group and a plain, public price table.
Limitations: EOR is sold as an add-on to a PEO plan rather than as a standalone product, and the pages we checked do not say how many countries the EOR covers. Medical, dental and vision administration sit in PEO Plus, not Basic [3].
Best fit: US small businesses whose first priority is payroll, benefits and compliance at home, with the occasional international hire.
Remote — EOR-first, with a published US PEO price
Remote sells EOR, global payroll and contractor plans, and its pricing page also lists a US PEO [5].
Verified features: Remote's EOR lets you "Hire in 90+ countries without a local entity" [5], using "100% owned entities, no third parties" [2]. Its PEO is "For companies that need to hire and manage employees across the United States, without establishing separate legal entities in each state" [5].
Pricing: EOR starts at $599 per employee per month "for annual contracts," and the PEO starts at $99 per employee per month [5]. Remote says "There are no setup or onboarding fees" [5]. The PEO is "Billed in USD, requires a U.S. bank account," and in some cases Remote may ask for "a refundable reserve payment" [5].
Strengths: Published prices for both models, "no base fee" for the platform, and an EOR delivered through its own entities [5, 2].
Limitations: The $599 EOR price is tied to annual contracts, and its stated EOR coverage is the smallest of the three that list a country count.
Best fit: Companies that want an EOR and a US PEO from one vendor at a lower published PEO price than Deel.
How to choose between a PEO and an EOR
- Start with entity and location. A US hire through your own US company can go through a PEO. A hire in a country where you have no entity needs an EOR [1]. That one question settles most cases.
- Count your hires by country. If most of your team is in the US and you hire abroad only now and then, a PEO-first vendor with an EOR add-on, such as Justworks, may be enough. If you are building a distributed team, an EOR-first vendor (Deel or Remote) or Rippling fits better.
- Compare total cost, not the starting price. Starting prices do not include salary, employer taxes or benefit premiums. Ask each vendor for a written quote that spells out contract length, deposits or reserves, and termination costs.
- Check the exit path. If you expect to open your own entity in a country, ask how EOR employees move over. Rippling states this directly [7]; with other vendors, get the answer in writing.
- Think about the systems around the team. If your first hires abroad are sales reps, the GTM engineering behind them matters as much as the contract, and some teams build a custom CRM that ties territory and headcount data together.
FAQ
What is an EOR, and how is it different from a PEO?
An employer of record "becomes the legal employer for your team in countries where you don't have an entity," while a PEO is "a co-employment model for companies that already have a legal entity," which for Remote means the US [2]. In short, the EOR employs your worker; the PEO shares employer duties with you.
Is a PEO an employer of record?
Only partly. Deel describes a PEO as sharing compliance liability "as the employer of record for payroll and tax," while a full EOR "legally hires employees on your company’s behalf" and "assumes full compliance liability" [1]. A PEO co-employs your staff; an EOR employs them.
EOR vs PEO: which costs more?
The EOR. Published EOR prices start at $599 per employee per month at Justworks, Remote and Deel, while published PEO prices start at $79 at Justworks, $99 at Remote and $125 at Deel [3, 5, 4]. They are not substitutes, though: a PEO needs your own US entity, and an EOR does not need an entity in the hiring country [1].
PEO vs EOR for small businesses: which should a US startup pick?
If your team is in the US and you have a US entity, a PEO is the usual fit, mainly for benefits; Rippling says co-employment lets a small business "offer big-company benefits" [8]. Use an EOR for hires in countries where you have no entity [1].
Can I move EOR employees to my own entity later?
With some providers, yes. Rippling says that if you set up an entity in that country later, it "can convert EOR employees to direct hires without re-onboarding" [7]. Ask any vendor how this works before you sign.
Our recommendation
If you are a US company hiring at home, start with a PEO: Justworks has the lowest published starting price here, and Remote and Deel publish theirs too. If you are hiring abroad without an entity, you need an EOR. Deel lists the widest country coverage of this group, Remote publishes the same EOR starting price and uses its own entities, and Rippling makes sense if you want employment inside one HR, IT and finance system. If you need both models, pick one vendor that sells both so your whole team sits in one place.
Sources
- US Professional Employer Organization (PEO) Services | Deel — checked 2026-11-08
- Employer of Record (EOR) Services & Platform | Remote — checked 2026-11-08
- Justworks PEO & Payroll Plans Pricing — checked 2026-11-08
- Pricing | Transparent & Fair Pricing | HRIS Costs | Deel — checked 2026-11-08
- Global workforce platform pricing & plans | Remote — checked 2026-11-08
- Justworks PEO - Professional Employer Organization — checked 2026-11-08
- Employer of Record Services to Hire and Pay Global Teams | Rippling — checked 2026-11-08
- PEO Software for HR, Benefits, and More | Rippling — checked 2026-11-08
- The platform for companies that want to grow faster (Rippling pricing) — checked 2026-11-08
- Hire Employees Globally | Employer of Record (EOR) | Deel — checked 2026-11-08
