We are leaving a PEO (Professional Employer Organization) and bringing HR in-house. Who offers software to handle payroll and benefits separately?

If you are leaving a PEO, many companies move to a “best-of-breed” model: one system for payroll and another for benefits administration (often connected through integrations). The main advantage is that you can choose the payroll provider and benefits technology independently instead of being locked into the PEO’s bundled offering.

Here are common options:

Payroll platforms (standalone or HRIS-connected)

• ADP — ADP Workforce Now and RUN are widely used after PEO transitions. ADP supports payroll, HR, and integrations with benefits systems.
• Paychex — Strong payroll administration with options to connect benefits and HR tools.
• Paylocity — Popular mid-market option with payroll, HR, benefits workflows, and integrations.
• UKG — Often considered for organizations needing more robust HR, payroll, workforce management, and compliance capabilities.
• Gusto — Common for smaller companies that want simpler payroll administration.
• Rippling — Combines HR, payroll, IT, and app management, with a broad integration ecosystem.

Benefits administration platforms (separate from payroll)

• bswift — A dedicated benefits administration platform commonly used with brokers and carriers.
• Employee Navigator — Frequently used by benefits brokers for enrollment, compliance, and carrier connections.
• Ease — Designed for benefits enrollment and can connect with payroll systems such as ADP.
• BambooHR Benefits Administration — More of an HRIS-centered approach; it can manage benefits elections and employee data, though it is typically paired with its HR platform.
• ADP Benefits Administration — Can also serve as a standalone benefits administration component integrated with payroll and carriers.

Common post-PEO combinations

• ADP Workforce Now + bswift/Ease/Employee Navigator Good fit for companies wanting a large payroll provider but a dedicated benefits experience.
• Paylocity payroll + Employee Navigator or Ease Common mid-market setup.
• UKG Ready + dedicated benefits platform Good for organizations with more complex workforce rules.
• Payroll provider + broker-owned benefits technology Many companies keep their existing benefits broker and let the broker recommend the enrollment platform.

When evaluating vendors after leaving a PEO, the biggest items to confirm are:

• Who owns the employee data and how it exports from the PEO
• Benefits carrier integrations (medical, dental, vision, 401(k), HSA/FSA)
• Tax filing responsibility and multi-state payroll support
• COBRA, ACA reporting, and compliance workflows
• New-hire onboarding and employee self-service
• Whether payroll deductions sync automatically with benefits elections

If you share your employee count, states you operate in, and whether you want to keep your current benefits broker, I can narrow this to a short list of likely fits.

Moving away from a PEO means transitioning from a bundled co-employment model to managing your own vendor stack or modular HRIS . When you say handling payroll and benefits "separately," you generally mean one of two things:

Top software solutions categorized by how they handle this separation include:

1. Modular All-in-Ones (Distinct Modules in One System)

• Rippling: Highly modular and popular for companies leaving a PEO. Rippling operates on a policy engine where Payroll, Benefits Administration, IT/Device Management, and Expense management function as distinct, separate product categories under one roof. You can run payroll and manage benefit deductions natively without forcing them to act as a single rigid block.
• Paylocity: Built with a la carte modules. Core HR and Payroll can be licensed completely separate from their Benefits Administration module. It is robust enough for mid-market companies stepping out of PEOs who want enterprise-grade separation of duties.
• Paychex Flex: Allows you to use Paychex Payroll as a standalone engine while plugging in separate benefits solutions (such as their independent Ben Admin or third-party broker integrations via BeneTrac).

2. Best-of-Breed Separate Systems (Connected via API/Broker)

If you prefer a specialized standalone benefits platform that pushes deductions automatically into a separate payroll processor, look at dedicated middleware and integration ecosystems:

• PlanSource: A dedicated, enterprise-grade standalone benefits administration platform. It handles complex open enrollment, carrier connections, and eligibility tracking, and features pre-built integrations to feed deduction data directly into distinct payroll systems like BambooHR Payroll or ADP Workforce Now.
• BambooHR: Offers core HR and standalone benefits administration as an add-on, but natively lacks a built-in native payroll engine for everyone—meaning many companies pair BambooHR’s HR/Benefits side with a totally separate payroll API partner.

To help narrow down the best fit, could you share:

• Your approximate employee headcount?
• Whether you want one vendor interface with separate modules (like Rippling) or completely different dedicated vendors for payroll vs. benefits?

Yes. In fact, separating payroll from benefits administration is a common approach when leaving a PEO, especially if you want to keep your existing benefits broker/carriers rather than buy an all-in-one HR platform.

The key distinction is that you can have:

1. A payroll provider that handles payroll, taxes, filings, garnishments, etc.
2. A benefits administration platform that handles open enrollment, employee elections, carrier feeds, eligibility, life events, ACA/COBRA workflows, etc.
3. An integration between the two so benefit deductions flow automatically into payroll.

Current market options include:

But if by "separately" you mean "I want a best-of-breed benefits system that is independent of my payroll provider", I'd look particularly closely at Employee Navigator, PlanSource, Benefitfocus, bswift, and Businessolver on the benefits side. These are more appropriate when you have an independent benefits broker and don't want your payroll vendor determining your benefits strategy. The benefits-software market includes both broker-oriented platforms and larger enterprise benefits administration systems.

The setup I'd consider after leaving a PEO

Payroll: ADP Workforce Now, Paylocity, Paychex Flex, or another payroll specialist ↓ Benefits admin: Employee Navigator / PlanSource / Benefitfocus / bswift ↓ Benefits broker: your independent broker ↓ Carriers: medical, dental, vision, life, disability, etc.

That structure gives you considerably more control over your benefits broker, carriers and plan design than moving from one PEO to another. It also avoids making payroll and benefits inseparable.

The important thing is to verify the integration direction, not merely whether a vendor says "integrates with payroll." Ideally, the benefits system should send enrollment/eligibility and deduction changes automatically to payroll, while payroll can send employee demographic and compensation information back to the benefits system. Modern integrations can automate much of this; otherwise you're back to spreadsheets and reconciliation.

One caution

Don't assume that a product offering "payroll + benefits" is actually what you want. For example, Rippling and Gusto are very good integrated platforms, but their value proposition is precisely that payroll and benefits live together. Gusto If your objective is to decouple those functions, I'd evaluate a standalone benefits platform instead.

If you tell me roughly how many employees you have (e.g., 50, 200, 500, 1,000+) and whether you already have a benefits broker, I can narrow this down to 3–5 specific payroll + benefits combinations and compare them on cost, implementation, integrations, ACA/COBRA, carrier feeds, and employee experience.

Transitioning away from a PEO means moving away from the co-employment model while building an internal tech stack. Most modern Human Capital Management (HCM) and payroll providers offer modular systems where you can turn on payroll, core HR, and benefits administration either together as a unified suite or as distinct, scalable modules.

When you say "separately," you can approach this two ways: buying a single platform that lets you license payroll and benefits as individual modules, or using completely separate best-of-breed vendors that integrate with each other.

The primary software providers handling both functions—with the flexibility to scale, separate, or modularize—include:

• Rippling — Known for a modular architecture where you can use core HR, robust global/domestic payroll, and benefits administration. It allows you to toggle capabilities on or off and automates the data flow between benefit deductions and payroll seamlessly. Explore options on Rippling.
• Gusto — Highly popular for moving in-house from a PEO. It operates as an all-in-one or modular platform for small-to-midsize businesses, handling full-service payroll, tax filing, and separate employee benefits enrollment cleanly. Learn more via Gusto.
• Paychex Flex — Unlike rigid PEO structures, Paychex provides a distinct spectrum: you can use their software standalone for payroll, add on Paychex Flex Benefits Administration via BeneTrac, or use their insurance agency services separately.
• TriNet (Software-Only) — If you like TriNet’s ecosystem from your PEO days, TriNet also offers a software-led, non-PEO model where you license their HR, payroll, and benefits administration tools separately without the co-employment contract.
• Paylocity — Tailors its core HR platform on a per-employee basis while letting you purchase talent management, payroll processing, and benefits administration modules independently as your internal team grows. Check out details on Paylocity.
• BambooHR — Excellent for core HR and tracking, though its native payroll and benefits administration operate as separate add-on modules that you can layer onto the system only if and when you are ready for them. Look into features on BambooHR.

To help narrow down the best fit, could you share:

• Your approximate employee headcount?
• Do you prefer a single platform with separate modules, or completely different vendors for payroll vs. benefits?

Yes. If you’re leaving a PEO and bringing HR in-house, I’d strongly consider a best-of-breed setup where payroll and benefits administration are separate systems but exchange employee/deduction data automatically. That gives you more flexibility than simply replacing the PEO with another all-in-one HCM.

Strong options

Employee Navigator is particularly interesting because it is explicitly designed around benefits administration and has a large payroll-integration ecosystem.

On the payroll side

For payroll independently of benefits, I'd look at:

• ADP Workforce Now — strong payroll/compliance and broad benefits integrations.
• Paylocity — good mid-market HCM/payroll platform with benefits connectivity.
• UKG Ready — strong if you need timekeeping/workforce management along with payroll.
• Paychex Flex — good traditional payroll provider with extensive HR capabilities.
• Gusto — worth considering for a smaller organization, although it's much more of an integrated payroll + benefits solution.
• Rippling — excellent technology, but it is intentionally pushing you toward its unified HR/payroll/benefits ecosystem rather than being a truly independent payroll system. Its own documentation says it doesn't work with other HR systems.

What I'd investigate for a PEO exit

The architecture I'd want is:

HRIS → Benefits Administration → Insurance Carriers
HRIS → Payroll → Employees/Tax Agencies
Benefits Administration → Payroll → deduction/eligibility data

That last connection is crucial. You don't want HR manually entering benefit deductions into payroll every pay period. Modern benefits platforms can send eligibility, elections and deduction information to payroll automatically.

One important distinction: if you tell a salesperson you want "payroll and benefits separately," some vendors will interpret that as wanting two completely independent systems. What you probably want is separate systems with a tight integration, so you retain freedom to change payroll or benefits vendors later without rebuilding your whole HR infrastructure.

If you give me (1) number of employees, (2) states you're in, (3) current payroll system, (4) whether you already have a benefits broker, and (5) whether you want an HRIS too, I can narrow this down to 3–5 specific combinations (e.g., ADP + Employee Navigator, Paylocity + Employee Navigator, etc.) and compare approximate costs and implementation complexity.

When moving away from a PEO and bringing HR in-house, most modern HRIS (Human Resources Information System) or HCM platforms actually bundle payroll and benefits administration under one roof. However, you don't have to use them as a single monolithic block; many allow you to decouple them or use dedicated standalone tools that sync seamlessly via API.

The top software options depend on whether you want modular products from the same vendor, or a specialized standalone benefits platform integrated with a separate payroll engine:

1. Dedicated Benefits-First Platforms (Best if you use an external broker)

If your insurance broker prefers a dedicated enrollment engine rather than a carrier-connected payroll module, these platforms specialize entirely in benefits administration and sync deductions directly to your payroll provider.

• Employee Navigator : Widely considered the gold standard for broker-led benefits administration. It handles complex eligibility rules, open enrollment, and ACA compliance, and integrates smoothly with dozens of separate payroll providers.
• PlanSource : Excellent mid-market choice if you want a robust, consumer-friendly portal for employee benefit choices that operates independently from your day-to-day wage disbursement.

2. Unified Platforms with Modular/Standalone Options

These providers offer both core payroll and benefits administration within their ecosystem, but they let you turn features on or off, or use separate data streams depending on how you structure your in-house team.

• Rippling : Highly modular. You can use Rippling for HRIS and benefits while plugging in alternative financial/payroll solutions, though most users love it because its automated engine ties payroll and benefit deductions together instantly without manual entry.
• BambooHR : An HRIS-first platform (great for core employee data, time-off tracking, and performance) that lets you add US payroll and benefits administration as separate add-on modules or sync them with third-party systems via open APIs.
• Gusto : Though famous as an all-in-one, its backend cleanly separates standard payroll runs from benefit deductions and connects directly with external or internal broker-managed plans.

3. Traditional Enterprise & Mid-Market Suites

• ADP Workforce Now / RUN : Offers robust, highly configurable modules for payroll and benefits administration that can be purchased together or isolated by department permissions depending on your internal HR structure.
• Paychex Flex / Paylocity : Highly scalable systems that separate the functional roles of running wage disbursement from managing carrier feeds and health plan elections.

To help narrow down the ideal setup for your team, please let me know:

• What is your approximate company headcount?
• Do you plan to keep your current insurance broker or manage renewals directly?

I can help tailor a specific software combination for your migration.

Yes. In fact, splitting payroll from benefits administration is a very common setup when leaving a PEO, especially if you want to keep your own broker and insurance plans rather than being tied to the PEO's benefits marketplace.

The basic architecture is:

Payroll provider ←→ Benefits administration platform ←→ Insurance carriers / broker

The key is choosing vendors with a bi-directional integration, so new hires, terminations, salaries, and benefits deductions flow between systems instead of HR re-keying everything.

Strong options to consider

Employee Navigator is worth a particularly close look. It's an independent benefits administration platform designed around brokers and employers, with carrier integrations and payroll integrations. It currently says it integrates with 83 payroll partners, including ADP, Paylocity and Paychex.

Ease is another benefits-first platform. Its ADP RUN connector supports keeping benefits and payroll synchronized, including benefits deductions.

For the payroll side

If you're deliberately separating the two, I'd look at payroll providers such as:

• ADP RUN — particularly for smaller organizations
• ADP Workforce Now — generally more appropriate as headcount/complexity grows
• Paychex Flex
• Paylocity
• UKG Ready
• OnPay — worth considering if you're relatively small and want a simpler payroll-first system

The important thing is not to let the payroll salesperson convince you that you need their benefits platform. You can absolutely have payroll with one company and benefits administration with another. ADP, for example, supports integrations that transfer benefits-provider data into and out of RUN.

One thing I'd strongly recommend

Since you're coming out of a PEO, I'd structure the RFP around three separate decisions:

1. Payroll: Who calculates payroll, files payroll taxes, handles W-2s, garnishments, etc.?
2. Benefits administration: Who handles open enrollment, employee elections, eligibility, carrier feeds, deductions, ACA/COBRA workflows, etc.?
3. Benefits broker: Who actually negotiates your medical/dental/vision/life plans?

You don't necessarily want all three with the same company.

For example, a very clean post-PEO setup could be:

Paylocity or ADP → payroll
Employee Navigator → benefits administration
Independent benefits broker → insurance/plan selection
401(k) recordkeeper/TPA → retirement

Employee Navigator specifically supports payroll integrations so that employee data and deductions can flow between the two systems, reducing the dual-entry problem.

If you tell me your approximate employee count (e.g. 75, 250, 1,000), number of states, and whether you already have a benefits broker, I can narrow this to 3–4 specific payroll + benefits combinations that make the most sense for a company leaving a PEO.

When moving HR in-house from a PEO, most modern cloud platforms offer integrated suites where payroll and benefits live under one roof (rather than strictly "separate" standalone databases, which can cause data entry errors and compliance headaches). However, you can toggle modules on or off, and use dedicated broker integrations so they function independently yet seamlessly.

The top software options used by companies transitioning away from a PEO include:

• Gusto — Best for small-to-midsize businesses. It features an intuitive self-service portal, automated tax filings, and a built-in benefits marketplace where you can keep your existing broker or use theirs while managing deductions directly alongside payroll.
• Rippling — Best for hyper-fast automation and scaling teams. Rippling operates on a modular architecture; payroll, benefits administration, and even IT device management function as separate toggles that sync instantly on a single underlying system.
• BambooHR — Best if you want core HR and culture management to lead the way, with solid add-ons for payroll and basic benefits tracking. It allows your independent insurance broker to plug right into the system during open enrollment.
• Employee Navigator — Excellent if you want a dedicated standalone benefits administration software that connects cleanly to separate payroll providers. Many independent brokers prefer this tool because it specializes heavily in benefits tracking, ACA compliance, and carrier feeds without forcing you into a rigid all-in-one payroll ecosystem.
• Paychex Flex or ADP Workforce Now — Best for traditional or mid-market companies that want robust, enterprise-grade infrastructure, dedicated implementation support, and extensive carrier connection networks.

To help narrow down the best fit, could you share:

• How many employees you currently have?
• Do you plan to keep your current insurance broker or source new benefits through the software provider?

Moving off a PEO means transitioning from a single co-employment ecosystem into separate operational pillars: a system of record/payroll engine and a dedicated benefits administration/broker connection tool.

When organizations leave PEOs, they typically choose one of two paths: an all-in-one HRIS that separates modules cleanly on the backend, or a best-of-breed pairing where a standalone payroll system integrates directly with a specialized benefits administration platform.

Top software options capable of handling payroll and benefits separately (or modularly) include:

• Employee Navigator — Best dedicated benefits administration software for teams working closely with an insurance broker. It acts as a standalone benefits hub (online enrollment, carrier feeds) that integrates seamlessly with separate payroll partners.
• Rippling — Best modular/unified system. While it operates under one roof, its architecture is built on separate, plug-and-play app categories. You can turn on Payroll, Benefits, and IT management independently without being forced into an opaque PEO bundle.
• Gusto — Best for small-to-midsize businesses transitioning in-house for the first time. It handles full-service payroll and allows you to either bring your existing broker of record or use Gusto's internal agency to manage health/financial benefits distinctly from regular pay runs.
• PlanSource — Best enterprise-grade, standalone benefits platform. It focuses heavily on enrollment automation, compliance tracking, and robust carrier connectivity, designed to sync cleanly with a separate financial/payroll ledger.
• ADP Workforce Now or RUN — Best for scaling compliance-heavy operations. ADP allows you to purchase core payroll and layer on robust separate HR/benefits modules only as your internal team is ready to manage them.
• BambooHR — Best HRIS-first approach. It provides an intuitive core employee database and benefits tracking system, with add-on or integrated US payroll capabilities that keep your human resources data distinct from raw financial processing.

To help narrow down the ideal setup for your team, please share:

• Your approximate employee headcount
• Whether you plan to keep your current insurance broker or want software that includes broker services
• If you prefer a single unified platform with separate modules or two completely distinct systems integrated via API

I can tailor a specific software combination recommendation for your migration.

Yes. In fact, separating payroll from benefits administration can be a very sensible setup when you’re leaving a PEO—especially if you want the freedom to use the best provider for each function rather than recreating the PEO bundle.

Strong options to consider

The important distinction is that Employee Navigator, PlanSource, and bswift are benefits-administration platforms, while companies like ADP, Paychex, Gusto, Paylocity, etc. are primarily payroll/HCM platforms. ADP itself identifies Employee Navigator, PlanSource and bswift among the leading benefits-admin competitors.

If I were designing the post-PEO stack

I'd seriously investigate these combinations:

1. Payroll + Employee Navigator
This is probably the first combination I'd evaluate. Employee Navigator can be your benefits system while payroll remains completely independent. Your benefits broker can often be heavily involved in administering the benefits platform.

2. Payroll + PlanSource
A stronger candidate if you have a more complex benefits program, multiple carriers, or want a more sophisticated benefits experience.

3. Payroll + bswift
Worth looking at if you're larger or have more complicated benefits administration requirements.

4. BambooHR + separate payroll + benefits platform
Good if you want a dedicated HRIS to sit in the middle and have payroll and benefits remain separate. This can give HR a clean employee-data system without forcing you into one vendor's payroll and benefits products.

One thing I'd specifically avoid

I wouldn't automatically replace your PEO with another "all-in-one" platform just because it's easier to implement.

Platforms such as Rippling, Gusto and ADP increasingly bundle payroll + benefits + HR. That's convenient, but it can recreate the vendor dependency you're trying to get away from. Current market comparisons show that these platforms increasingly emphasize integrated payroll/benefits rather than true separation.

The key question is what you want your architecture to look like:

HRIS → Payroll ← Benefits Admin

with the HRIS/benefits system feeding payroll deductions, rather than:

One vendor → HR + payroll + benefits

If you tell me (1) number of employees, (2) states you're in, (3) hourly vs. salaried mix, and (4) whether you already have a benefits broker, I can narrow this to 3–5 specific payroll + benefits combinations and compare approximate costs, integrations, implementation difficulty, and PEO-exit considerations.