B2B Payroll, PEO & HRIS Per-Employee Fee Audit Calculator

Based on $4200/mo across 35 active employees billed by National PEO & Payroll Co-Employment Provider.

Target 12-month total: $33,264 (Uncapped Percentage-of-Payroll Admin Fees + SUTA/Workers' Comp Markup Spreads (34% Fee Reduction)).

Eliminates terminated-employee billing floors, W-2/1099 filing surcharges, and percentage-of-payroll inflation.

What to Challenge on Your National PEO & Payroll Co-Employment Provider Renewal

• Convert percentage-of-payroll administrative fees (2%–4% of gross wages, which penalizes you every time you give raises or bonuses) into a flat, capped Per-Employee-Per-Month (PEPM) rate ($65–$95 PEPM).
• Audit Workers' Compensation and SUTA tax pass-through markups: require transparent statutory rate schedules rather than bundled PEO composite rates that hide 35%+ margin spreads.
• Demand full transparency on medical master-policy renewal tiers and reserve the right to transition to standalone payroll + brokered health insurance with 30 days' notice.
• Waive setup, implementation, W-2 year-end processing, and off-cycle payroll run fees in writing.

Send to National PEO & Payroll Co-Employment Provider Account Management

To: National PEO & Payroll Co-Employment Provider — Account Management, Renewals & Billing Team
Subject: PEO / HRIS PEPM FEE AUDIT, ACTIVE-HEADCOUNT BILLING & RATE RESTRUCTURE — National PEO & Payroll Co-Employment Provider ($4,200/mo)

Please accept this letter as our formal protective Notice of Non-Renewal / Fee Restructure regarding our PEO Co-Employment & Comprehensive Payroll Administration (PEPM / % of Payroll) agreement covering 35 active employees (currently billed at $4,200/month or ~$120 PEPM, totaling $50,400/year).

1. Protective Opt-Out of Auto-Renewal & Seat Floors: We hereby opt out of any automatic 12-month contract renewal and any minimum-committed headcount floor. Effective at our upcoming renewal window, billing must reflect actual active full-time headcount with immediate pro-rata credit upon employee termination.
2. PEPM Benchmark & Fee Unbundling Audit: Our 2026 HR/Finance vendor audit identified Uncapped Percentage-of-Payroll Admin Fees + SUTA/Workers' Comp Markup Spreads (34% Fee Reduction). We require immediate removal of terminated/archived profile fees, year-end W-2/1099 filing surcharges, and unapproved add-on modules.
3. Restructured Flat-PEPM Counter-Offer: Based on 2026 P25 benchmarks for a 35-employee organization, we are authorized to renew at a flat, all-inclusive administrative rate of $2,772/month (~$79 PEPM, or $33,264/year—representing a 34% reduction and $17,136/year in savings) with zero off-cycle payroll or tax-filing surcharges.

Please confirm receipt of this protective notice and provide an updated renewal order form reflecting the $2,772/month ($79 PEPM) rate within 5 business days.