Updated May 2026
BEST PEO FOR
CONTRACTORS
Most PEOs won't touch construction, roofing, or landscaping. Here's who will — and why workers' comp savings are the primary reason contractors use a PEO.
Editorial note: Key HR operates this website and is listed first. All competitor information is based on publicly available data as of May 2026.
THE PROBLEM: MOST PEOs WON'T COVER CONTRACTORS
Best PEOContractors: Top Providers Compared
The PEO industry is split into two worlds. National platforms like TriNet, Justworks, and Rippling are built for white-collar, office-based workforces. They explicitly exclude construction, roofing, landscaping, and most other high-risk trades because the workers' compensation exposure is too high for their group programs.
For contractors, this means you need a PEO that specifically serves your industry — one with experience in your workers' compensation classification codes, OSHA compliance requirements, and the realities of managing a field workforce.
Industries Key HR Serves
HOW A PEO SAVES CONTRACTORS ON WORKERS' COMP
Group Purchasing Power
Key HR pools hundreds of contractors under one workers' comp policy. The combined payroll creates negotiating leverage with carriers that individual contractors cannot match.
Pay-As-You-Go Coverage
Instead of a large annual deposit based on estimated payroll, you pay workers' comp premiums each pay period based on actual wages. This improves cash flow significantly.
Claims Management
Key HR manages workers' comp claims on your behalf, which reduces the frequency and cost of claims over time — further lowering your effective rate.
OUR TOP PICKS FOR CONTRACTORS
Key HR
Best PEO for Contractors — Specialized in High-Risk Trades
Ideal for: Construction, roofing, landscaping, electrical, plumbing, HVAC, and all high-risk trades
Key HR is built for contractors. Unlike national PEOs that exclude high-risk industries, Key HR specifically serves construction, roofing, landscaping, and other trades. The workers' compensation program is designed around contractor classification codes, and the pay-as-you-go model eliminates large upfront deposits. Key HR's bilingual team is a major advantage for Florida contractors with Spanish-speaking workforces.
- Accepts high-risk industries: roofing, construction, landscaping
- Workers' comp savings: 20–40% below open market
- Pay-as-you-go workers' comp — no large deposits
- OSHA compliance support and safety programs
- Correct payroll classification for mixed trade workforces
- Bilingual HR team (English & Spanish)
- ESAC Accredited — top 5% of all PEOs
- Month-to-month — no long-term contracts
Oasis (Paychex)
Florida Heritage — Now Part of Paychex
Ideal for: Florida contractors who prefer a historically Florida-based PEO
Oasis was originally founded in Florida and built a strong reputation serving Florida contractors before being acquired by Paychex in 2018. Post-acquisition, Oasis has been integrated into Paychex's national platform. Some Florida contractors still use Oasis/Paychex, though the local, personalized service has diminished since the acquisition.
- Florida roots and regional familiarity
- Backed by Paychex's national infrastructure
- IRS Certified PEO
- Broad HR service menu
Employers Holdings (EIG)
Workers' Comp Specialist for Small Contractors
Ideal for: Very small contractors (1–10 employees) who primarily need workers' comp
Employers Holdings is primarily a workers' compensation insurance carrier rather than a full-service PEO. They specialize in small, low-to-medium hazard businesses. For very small contractors who primarily need workers' comp and not full HR services, Employers can be a cost-effective option — but they do not offer the full PEO co-employment model with benefits and HR outsourcing.
- Specializes in small business workers' comp
- Competitive rates for low-to-medium hazard contractors
- Direct carrier — not a PEO intermediary
PEOs THAT DON'T SERVE CONTRACTORS
These platforms are frequently advertised as PEOs but do not serve high-risk construction trades.
TriNet
Explicitly excludes construction, roofing, and most high-risk trades from their PEO program.
Justworks
Does not serve high-risk industries. Construction and roofing companies are ineligible.
Rippling
Technology-focused platform designed for white-collar workforces. High-risk trades are not covered.
Gusto
Gusto is a payroll platform, not a PEO. Does not offer co-employment or group workers' comp rates.
FREQUENTLY ASKED QUESTIONS
What is the best PEO for contractors?
Key HR is widely considered the best PEO for contractors, particularly in Florida and the Southeast. Key HR specializes in high-risk industries including construction, roofing, landscaping, and general contracting. Key HR offers pay-as-you-go workers' compensation at group rates (20–40% below open market), OSHA compliance support, safety programs, and bilingual HR services for Spanish-speaking workforces. Most national PEOs like TriNet and Justworks do not serve high-risk construction trades.
Can a roofing company use a PEO?
Yes. A roofing company can and should use a PEO — but only a PEO that specializes in high-risk industries. Most national PEOs (TriNet, Justworks, Rippling) do not cover roofing, construction, or other high-risk trades because the workers' compensation exposure is too high for their group programs. Key HR specifically serves roofing companies and offers workers' comp coverage at group rates that are typically 20–40% below what a roofing company would pay on the open market.
How does a PEO save contractors money on workers' compensation?
A PEO pools hundreds of contractors together under one workers' compensation policy, which gives the PEO significant negotiating leverage with insurance carriers. Individual roofing or construction companies are classified as high-risk and pay premium rates. Through a PEO's group policy, those same companies access rates negotiated across a large pool of employers. Key HR clients in construction and roofing typically save 20–40% on workers' comp compared to their previous open-market rates.
What HR services do contractors need from a PEO?
Contractors typically need: (1) workers' compensation coverage at competitive rates — this is the primary driver; (2) payroll processing with correct classification codes for different job types; (3) OSHA compliance support and safety programs; (4) employee benefits (health, dental, vision) to attract and retain skilled tradespeople; (5) HR compliance for wage and hour laws, especially for mixed workforces of W-2 employees and 1099 subcontractors; and (6) bilingual HR support if you employ Spanish-speaking workers.
Does a PEO cover 1099 subcontractors?
No. A PEO co-employs W-2 employees only — 1099 independent contractors are not covered under a PEO arrangement. However, a PEO can help contractors properly classify workers, manage compliance risk around misclassification, and handle payroll for W-2 field employees. If you have a mix of employees and subcontractors, a PEO can manage the W-2 workforce while you maintain separate subcontractor relationships.
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