What to know before choosing a PEO for Texas employees, and how to compare providers.
Texas licenses PEOs through the Texas Department of Licensing and Regulation (TDLR). Check that any PEO you consider holds an active Texas license before signing.
IRS Certified PEO
Small and mid-sized businesses, including franchises, that want a Texas-based PEO.
No published rates. Cost depends on company size and services chosen, plus a one-time onboarding fee equal to one month of administrative costs. ยท Minimum: Not confirmed
Compare every provider. Then request quotes and ask each one to confirm Texas coverage, taxes and workers' compensation rules.
Many national PEOs serve multiple states, but availability, pricing and benefit plans can differ by state. Confirm Texas coverage when you request quotes.
Ask the provider for its Texas license or registration where one is required, and confirm federal status on the IRS list of certified PEOs.
Last verified November 4, 2026. This is general information, not legal advice.