Decision · EOR or PEOPEO vs EOR: what the fee gap buys

Two fees, two legal set-ups

The Employer of Record is the legal employer through its own entity in the country; you pay a fee per employee per month for that entity, its payroll and its compliance. The PEO co-employs people who are already on your own entity’s books: it runs payroll, benefits and HR administration for a much smaller fee, because the entity, the registrations and the ultimate liability stay with you. That is why the fee gap on this page is not a saving until the entity exists.

The gap, in dollars

Deel prints $599 per EOR employee and $125 per US PEO employee; Remote prints $599 for annual contracts and $99. The yearly gap per employee is therefore $5,688 (Deel) or $6,000 (Remote). For a US team of ten that is $56,880 or $60,000 a year of fees that only an entity owner can avoid. Whether that beats the cost of running the entity is your accountant’s number, not the provider’s; the EOR vs your own entity instrument takes that quote. The employer charges of a US hire are owed under both, each employer at its own unemployment and workers’ compensation rates; the United States page prices them line by line, federal and Californian.

Justworks also prints a US PEO price and a Global EOR price on its pricing page. Its terms of use do not allow its site material to be reproduced, so its figures are not on this page: enter its PEO fee as your quote in the instrument to set it beside the others.

Per employee or percentage of payroll

PEOs quote in one of two ways: a flat fee per employee per month, or a share of gross payroll. The two published PEO fees on this page are flat: $99 (Remote) and $125 (Deel), which is 1.98% and 2.5% of a $5,000 monthly salary ($60,000 a year). A percentage quote rises with every raise; a flat fee does not. A 3% quote costs the same as Deel’s $125 at a $50,000 salary and more above it; a 2% quote reaches it at $75,000. Enter your quote in the instrument, in dollars or as a percentage, to see it beside each published fee at your salary.

The fee is not the whole contract. Deel’s pricing page, read on 12 October 2026, advertises three months of PEO free for new PEO lines on qualifying order forms with a minimum two-year term, credited at the end of the initial term and excluding renewals. Remote bills its PEO monthly, in US dollars, for the United States only.

Where the PEO option does not exist

None of the fourteen providers tracked publishes a PEO price outside the United States. For a hire in Germany, India or Mexico the practical choice is an EOR fee of $199 to $699 a month, or your own entity with the statutory employer charges of the country on top either way: +22.3% in Germany, at least +3.8% in India, +30.9% in Mexico at the example salaries on the country pages.