Justworks
PEO/payroll for small businesses wanting enterprise-grade benefits without complexity
How it works
Justworks is a Professional Employer Organization (PEO) and HR platform serving approximately 12,000 businesses. Through a co-employment model, it pools small businesses' employees together, giving them access to enterprise-grade benefits including health insurance (Aetna/UnitedHealthcare), 401(k), workers' compensation, and life/disability coverage typically available only to large corporations. The platform handles automated multi-state payroll, federal/state/local tax filing, compliance (ACA, COBRA, ERISA), and employee onboarding with digital I-9 and W-4. Justworks is both IRS-certified (CPEO) and ESAC-accredited, providing financial protections. It also offers an Employer of Record (EOR) service for international hiring in 100+ countries.
Is it right for you?
Consider if you
- Small businesses (5-50 employees) that want large-company health insurance and 401(k)
- Companies needing multi-state payroll tax compliance handled automatically
- Businesses wanting transparent PEO pricing with no long-term contracts or setup fees
Skip if you
- Solo freelancers or businesses with no W-2 employees (PEO is overkill)
- International-first teams (EOR product launched ~2024, less mature than Deel or Remote)
- Companies needing deep HR analytics, custom integrations, or advanced reporting
Your money and data
Justworks is IRS-certified as a Certified Professional Employer Organization (CPEO), which means the IRS has verified its financial stability and tax compliance. It is also accredited by the Employer Services Assurance Corporation (ESAC), providing financial assurance through surety bonds. Client funds for payroll and taxes are held in segregated trust accounts, legally separate from Justworks' operating accounts. Employee benefits are provided through major carriers (Aetna, UnitedHealthcare) with standard insurance protections. Justworks maintains SOC compliance and carries ERISA fidelity bonds.
Pros & Cons
Pros
- Transparent, published pricing with no setup fees, no long-term contracts, and month-to-month billing
- Access to large-group health insurance rates (Aetna/UnitedHealthcare) that small businesses couldn't get alone
- IRS-certified CPEO and ESAC-accredited, providing financial assurance and independent oversight
Cons
- Health insurance premiums add $400-700/employee/month on top of platform fees; real cost is much higher than base price
- Benefit renewal rates can spike 20-50% year-over-year with limited alternatives
- Limited reporting and integrations compared to ADP or Rippling; PTO tools are basic
Pricing details
Payroll Only: $50/mo base + $8/employee/mo (payroll, tax filing, W-2/1099 prep). PEO Basic: $59/employee/mo (payroll + workers' comp + 401(k) + life/disability + compliance + 24/7 support). PEO Plus: $109/employee/mo (adds health/dental/vision, HSA/FSA, mental health, COBRA). Time Tracking add-on: +$8/employee/mo. US Contractor Payments: $8/contractor/mo. Intl Contractor Payments: $39/contractor/mo. Intl EOR: $599/employee/mo. Note: health insurance premiums are NOT included and add significant cost on top. No setup fees. No long-term contracts.
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