How each model delivers compliance protection, strategic value, and operational support for California
employers.
Compliance protection level
Best Fractional HR — HALO IQ forensic audits + dedicated HRBP oversight
Best PEO — Co-employment transfers compliance liability to PEO
Good ASO — HALO IQ monitoring without co-employment
Weak In-House HR — Limited by one person's bandwidth and expertise
Monthly cost (75 employees)
Best Fractional HR — $3K–$8K/mo
Good PEO — $4K–$12K/mo + admin fees
Good ASO — $2K–$6K/mo
Weak In-House HR — $12K–$18K/mo (salary + benefits)
Strategic HR advisory
Best Fractional HR — Dedicated HRBP with forensic compliance foundation
Good PEO — Dedicated HRBP under co-employment
Good ASO — Dedicated HRBP for oversight and guidance
Good In-House HR — One person wearing 5 hats
PAGA & wage/hour protection
Best Fractional HR — HALO IQ identifies gaps + PAGA cure process
Best PEO — PEO shares liability through co-employment
Good ASO — HALO IQ monitoring + cure process support
Weak In-House HR — Manual tracking — reactive by nature
Control over benefits & payroll
Best Fractional HR — Full control — you choose vendors
Good PEO — PEO manages benefits + payroll under co-employment
Best ASO — Full control — admin handled for you
Good In-House HR — Full control but labor-intensive
Scalability (50 → 200+ employees)
Best Fractional HR — Scales seamlessly with your growth
Good PEO — Structured scaling under co-employment
Good ASO — Scales admin and compliance monitoring
Weak In-House HR — 3–6 month hiring cycle for each role