TriNet Group, Inc. (TriNet) provides human resources (HR) solutions for small and medium-size businesses (SMBs).
The company offers technology-enabled services that include human capital expertise, employee benefits, such as health insurance and retirement plans, payroll and payroll tax administration, risk mitigation, and compliance consulting.
TriNet has served, and continues to serve, thousands of SMBs. It is publicly traded company in the U.S. that focuses primarily on the Professional Emp...
TriNet Group, Inc. (TriNet) provides human resources (HR) solutions for small and medium-size businesses (SMBs).
The company offers technology-enabled services that include human capital expertise, employee benefits, such as health insurance and retirement plans, payroll and payroll tax administration, risk mitigation, and compliance consulting.
TriNet has served, and continues to serve, thousands of SMBs. It is publicly traded company in the U.S. that focuses primarily on the Professional Employer Organization (PEO) business, in terms of the number of WSEs it serves.
The company offers am integrated service solution that is tailored to high-income, employee-centric SMBs. Its primary targeted industry verticals include technology, financial services, life sciences, nonprofit, professional services, and main street. The company provides its clients with a premium HR advisory experience featuring high-touch services and efficient issue resolution, to yield a high level of customer satisfaction and retention.
The company's medium-term strategy includes taking actions to increase revenue growth through improved benefits options and risk management capabilities, expanded sales force scale, tenure, and productivity, and expanded distribution channels.
Service Models
The company delivers a comprehensive suite of HCM services that help its clients administer and manage various HR-related needs and functions, such as compensation, benefits, payroll processing, tax credit support, employee data, health insurance, workers' compensation, EPLI, and other employment risk mitigation programs, employee performance management and training, onboarding and offboarding, and other transactional HR needs using its PEO technology platform and benefits and compliance expertise.
The company delivers its services primarily through its PEO services that it provides via its co-employment model, and to a lesser extent, through its ASO-only services.
PEO Services
TriNet has historically focused almost exclusively on the PEO business, and PEO services remain its core business. The company's PEO services offer its clients the most complete HCM solution, generally including all of the services.
ASO Services
Until recently, the company offered a SaaS-only solution as the primary offering of its HRIS services. It is, however, transitioning this SaaS-only solution to offerings that combine the SaaS solution with a significant service component. It refers to these offerings as ASO services, which are marketed as ‘HR Plus’. ASO services include payroll processing, benefits management, HR administration, and compliance management to provide HCM solutions that its clients can tailor dynamically over time based on their needs. Unlike its PEO services, its ASO services do not include co-employment or access to TriNet-sponsored health benefit plans.
Services
The company's comprehensive HR solutions include the following capabilities:
HR Consulting Expertise
The company uses the collective knowledge and experience of its teams of HR, benefits, payroll, risk management, and compliance professionals to help its clients navigate many of the administrative, regulatory, and practical requirements associated with being employers. It does this by incorporating its knowledge and experience into its services and technology platforms, and by making its professionals available to consult with clients on a variety of HR needs, including talent management, retention and terminations, benefits enrollment, immigration and visas, payroll tax credits, employment compliance and regulatory developments, and many other industry-specific and general HR topics. Depending on their needs, its clients have access to varying levels of service and support from its professionals, ranging from call center support to pooled HR resources. Its professionals also provide additional specialized HR consulting services upon request.
Benefit Options
In its PEO business, the company utilizes its scale to provide its WSEs access to a broad range of TriNet-sponsored employee benefit and insurance programs with features. The company's benefit and insurance programs are designed to comply with federal, state, and local regulations, and its benefit and insurance service offerings include plan selection and administration, enrollment management, leave management, plan document distribution, and WSE and client communications.
Under these benefit and insurance programs, the company pays third-party insurance carriers for WSE insurance benefits and reimburses insurance carriers or third-party administrators for claims payments within its insurance deductible layer, where applicable.
The company sponsors and administers several employee benefit plans for its WSEs through a broad range of carriers, including group health, dental, vision, short- and long-term disability, and life insurance as an employer plan sponsor under Section 3(5) of ERISA. It also provides for other benefit programs to be made available to WSEs, including flexible spending accounts, health savings accounts, retirement benefits, COBRA benefits, supplemental insurance, and commuter benefits, as well as other programs, such as home insurance, critical illness insurance, accident insurance, hospital indemnity, pet insurance, and auto insurance.
The company also offers PEO clients the option to obtain their own client-sponsored benefits through its OMS product family. Its OMS clients receive PEO services, such as HR, payroll, payroll tax, and risk management from TriNet while sponsoring their own health benefits obtained through a broker.
Payroll Services
The company helps its PEO and ASO clients manage their employee compensation by providing multi-state payroll processing, tax administration, and tax credit services, as well as other payroll-related services, such as time and attendance management, time off and overtime tracking, and expense management solutions. Its clients and WSEs can access payroll and tax information using its various online and mobile tools. The company's payroll tax administration and tax credit services include calculating, withholding, remitting, and reporting certain federal, state, and local payroll and unemployment taxes on behalf of clients and WSEs.
Risk Mitigation
The company monitors employment-related legal and regulatory developments at the federal, state, and local levels to help its PEO and ASO clients comply with employment laws and mitigate many of the risks associated with being an employer. It provides HR guidance on employment laws and regulations, such as those relating to minimum wage, unemployment insurance, family and medical leave, and anti-discrimination. For its PEO clients, its TriNet-sponsored benefit plans are designed to comply with applicable laws and regulations, such as the ACA, reducing this compliance burden on its clients.
The company's PEO services provide fully insured workers' compensation insurance coverage for its clients and WSEs through insurance policies that it negotiates with third-party insurance carriers. It manages the deductible risk that it assumes in connection with these policies by being selective in the types of businesses that it takes on as new clients, and by monitoring claims data and the performance of its carriers and third-party claims management service providers. In addition, it advises clients on workers’ compensation best practices, including by performing workplace assessment consultations and assisting with client efforts to identify conditions or practices that might lead to employee injuries.
The company also provides EPLI coverage for its PEO clients through an insurance policy that it obtains from a third-party EPLI carrier. This policy provides coverage for certain claims that arise in the course of the employment relationship, such as discrimination, harassment, and certain other employee claims, with a per-claim retention amount. The retention amount under this policy, which functions like a deductible, is allocated on a pre-determined basis between the client and TriNet. Its professionals assist clients in implementing HR best practices. Its preferred outside employment law firms defend covered EPLI claims.
Technology Platform
The company's PEO technology platform includes online and mobile tools that allow its clients and WSEs to store, view, and manage HR information and administer a variety of HR transactions, such as payroll processing, tax administration, tax credits, employee onboarding and termination, employee performance, time and attendance, compensation reporting, expense management, and benefits enrollment and administration. Its online tools also incorporate workforce analytics, allowing PEO clients to generate HR, payroll, total compensation, and other custom reports.
Contractor and Global Workforce Support
TriNet provides clients with a simplified solution for handling independent contractors with its contractor payments application, featuring a software solution that allows clients to onboard, manage, and pay independent contractors. In addition, for clients with employees outside the U.S., it provides payroll and HR support through international employer of record partners.
PEO Co-Employment Model
The company's PEO services operate on the basis of a co-employment model, under which employment-related responsibilities are allocated by contract between it and its PEO clients. The co-employment model allows WSEs to receive the full scope of its services, including providing WSEs with access to TriNet-sponsored employee benefit plan offerings. Each of its PEO clients enters into a client service agreement with it that defines the suite of services and benefits to be provided by it, the fees payable to it, and the division of responsibilities between it and its clients as co-employers. WSEs also separately acknowledge the co-employment relationship and the allocation of employment-related responsibilities between TriNet and the client co-employer. The division of responsibilities under its client service agreements is typically as follows:
TriNet Responsibilities
The company generally assumes responsibility for, and manages certain risks associated with:
Payments of salaries, wages, and certain other compensation to WSEs from its own bank accounts (based on client reports and payments), including the processing of garnishment and wage deduction orders,
Reporting of wages, withholding, and deposit of associated payroll taxes as the employer of record,
Provision and maintenance of workers' compensation insurance and workers' compensation claims processing,
Access to, and administration of, group health, welfare, and retirement benefits to WSEs under TriNet-sponsored benefit plans,
Compliance with applicable law for certain TriNet-sponsored employee benefits offered to WSEs,
Administration of unemployment claims and post-employment COBRA benefits, and
Provision of various HR policies and agreements, including employee handbooks and worksite employee agreements describing the co-employment relationship.
Client Responsibilities
The company’s clients are responsible for employment-related responsibilities that it does not specifically assume, generally including:
Day-to-day management of their worksites and WSEs,
Compliance with laws associated with the classification of employees as exempt or non-exempt, such as overtime pay and minimum wage law compliance,
Accurate and timely reporting to TriNet of compensation and deduction information, including information relating to hours worked, rates of pay, salaries, wages, and other compensation, and work locations,
Accurate and timely reporting to TriNet of information relating to workplace injuries, employee hires and terminations, and certain other information relevant to TriNet’s services,
Provision and administration of any employee benefits not provided by TriNet, such as equity incentive plans or nonqualified deferred compensation plans,
Compliance with all laws and regulations applicable to the clients' workplace and business, including work eligibility laws, laws relating to workplace safety or the environment, laws relating to family and medical leave, laws pertaining to employee organizing efforts and collective bargaining, and employee termination notice requirements,
Payment of TriNet invoices, which include reimbursement for salary, wages, and other relevant compensation to WSEs and applicable employment taxes and service fees, and
All other matters for which TriNet does not assume responsibility under the client service agreement, such as intellectual property ownership and protection and liability for products produced and services provided by the client company to its own clients.
As a result of co-employment relationships for PEO services, the company is liable for payment of salary, wages, and certain other compensation to the WSEs as reported and paid to it by its client, and it is responsible for providing specified employee benefits to such persons to the extent provided in each client service agreement and under federal and state law. In most instances, clients are required to remit payment prior to the applicable payroll date by wire transfer or ACH.
For its PEO services, the company also assumes responsibility for payment and liability for the withholding and remittance of federal and state income and employment taxes with respect to salaries, wages, and certain other compensation paid to WSEs, although it reserves the right to seek recourse against its clients for any liabilities arising out of their conduct. It performs these functions as the statutory employer for federal employment tax purposes since its clients transfer legal control over these payroll functions to it. The laws that govern the payment of salaries, wages, and related payroll taxes for its WSEs are complex, and the various federal, state, and local laws that govern such payments can vary significantly.
ASO clients generally remain responsible for, among other things, workers’ compensation insurance, obtaining and sponsoring group health, welfare, and retirement benefits, administering unemployment claims, and in some cases payroll tax reporting. The additional responsibilities that PEOs assume, and risks that PEOs manage, for its PEO clients is a key difference between its PEO and ASO services.
Technology and Service Development Efforts
The company continued to make significant investments in its PEO technology platform. These investments are intended to provide its clients (including PEO and ASO clients) and WSEs with enhanced functionality, ease of use, HR management options, security, and an optimized user experience. It intends to continue making these and other similar investments in 2025 and beyond to drive operating efficiencies and improve client retention and satisfaction over the long term.
In 2024, the company continued to develop its next-generation cloud-based platform. This new platform, which combines elements of its original PEO and HRIS platforms, is intended to further modernize its customers’ experience through more self-service capabilities and other important functions to, in turn, enable it to service SMBs throughout a larger portion of their lifecycle. Moreover, it has also begun to explore integrating new technologies, including expanding its existing AI/ML capabilities, into the customer experience to allow it to create efficiencies in the way it serves its customers and the way it operates internally.
Clients and Geographies
The company's clients are distributed across a variety of industries. Its PEO clients generally execute annual service contracts with it that automatically renew. In most cases, its PEO clients may cancel these contracts with 30 days' notice to it, and it may cancel these contracts with 30 days' notice to its clients. Its ASO clients execute contracts with monthly or annual terms, and clients can typically cancel these contracts with 30 days’ notice to it. In some cases, its clients may incur fees associated with early termination.
The company's top five PEO markets are California, New York, Florida, Texas, and Massachusetts, which account for approximately 63% of its total WSE paid wages for the year ended December 31, 2024. Nearly all of its revenues are generated within the United States and its territories, and substantially all its long-lived assets are located in the United States.
Competitors
The company's PEO service competitors include large PEOs, such as the TotalSource unit of Automatic Data Processing, Inc., the PEO operations of Paychex, Inc., and Insperity, Inc.
Sales and Marketing Organizations
The company sells its solutions through its sales organization, offering its solutions directly to clients and through key strategic partnerships with brokers and other channel partners. It has aligned its PEO sales organization by industry vertical with the goal of growing profitable market share in targeted industries. Its PEO vertical approach deepens its network of relationships and gives it an understanding of the unique HR needs facing SMBs in those industries. Its sales representatives are supported by marketing, brand, lead generation efforts, and referral sources and networks. It increasingly uses technology and remote communication tools to engage with customers and prospects virtually.
To connect with SMBs, the company leverages diverse channels, including sponsorships with associations and aligned brands. Key initiatives include promoting its PEO and ASO services through both physical and virtual events and workshops. Programs, such as TriNet PeopleForce, monthly PEO, and ongoing ASO virtual events allow it to target specific verticals and geographic markets. As a sponsor of the Small Business Association’s National Small Business Week, it also hosts a dedicated week-long event to deliver valuable, targeted content to the SMB community. During these events, it frequently includes specialists and customers to provide actionable, real-world insights.
The company seeks to generate sales opportunities, build brand awareness, enhance client retention, and establish its reputation as an HCM thought leader in key industry verticals through marketing alliances and indirect channels. These include partnerships with insurance brokers, accounting firms, venture capital firms, incubators, and industry associations.
The company’s digital marketing programs aim to drive awareness, generate interest, and capture leads across its portfolio. These efforts encompass digital advertising, search engine marketing, retargeting, and email campaigns.
The company’s marketing and corporate communications teams lead efforts to build brand awareness, oversee reputation management, drive lead generation, retain customers, and deliver relevant thought leadership to the SMB community. The team manages its website and other owned properties, creates content for outbound and inbound channels, and supports sales enablement, promotional campaigns, brand initiatives, and partner enablement. In 2024, it also published ‘The State of the Workplace’, which provided a comprehensive analysis of both employer and employee perspectives in the U.S. small business community. Additionally, its Corporate Communications and Editorial team is responsible for managing its press and media relations, overseeing internal and external communications, driving organic social media initiatives, and developing comprehensive crisis communication strategies to safeguard and further enhance its reputation.
With SMB behavior evolving rapidly, the company has adopted digital tools, such as telepresence, chat, and interactive assessments, to enable it to engage SMBs in innovative ways. In 2024, it enhanced its digital engagement with tools, such as conversational marketing on its website and interactive self-assessments.
The company’s brand campaigns are designed to create a unifying ‘umbrella effect’ to amplify awareness across the industry. Its 2024 brand campaign, centered on its organizing principle ‘People Matter,’ employed an omnichannel approach that it expects will continue to evolve in 2025.
Laws and Regulations
As part of its PEO services, the company sponsors employee benefit plan offerings as the employer of its WSEs (A worksite employee who is co-employed by, or otherwise receiving services from a TriNet PEO) under the Internal Revenue Code of 1986, as amended (the ‘Code’), Employee Retirement Income Security Act (ERISA), and applicable state law.
Because TriNet-sponsored health plans are covered entities under Health Insurance Portability and Accountability Act (HIPAA), its sponsored health plans are required to comply with HIPAA's portability, privacy, and security requirements. It is also subject, among other applicable federal laws, rules, and regulations, to the rules and regulations promulgated under the authority of the Federal Trade Commission.
As a result, many of its SMB clients require that it support these programs. Examples of these programs include the federal 2015 PATH Act, Coronavirus Aid Relief and Economic Security Act (CARES Act), and Families First Coronavirus Response Act (FFCRA).
Seasonality
The company's business is affected by seasonality in client business activity, hiring and benefit selections, health claims costs, and payroll taxes:
PEO clients generally change their payroll service providers at the beginning of the payroll tax and benefits enrollment year; as a result, the company has historically experienced its highest volumes of new clients joining and terminating clients in the month of January. Its ASO clients are generally less affected by these considerations.
WSEs select the company's TriNet-sponsored benefit plans during their respective open enrollment periods, which occur throughout the year. The company generally experiences the largest proportion of WSE benefit changes in the first and second quarters. In addition, the overall use of medical services by WSEs, including elective procedures, tends to increase later in the calendar year.
Certain payroll tax-related billings are based on annual taxable wage bases up to a set cap. The company's clients frequently meet these wage base caps in the first two quarters of the year, depending on the compensation level of the relevant employees, resulting in lower related billing contributions to PSR in the latter half of the year (year ended December 31, 2024).
History
TriNet Group, Inc. was founded in 1988. The company was incorporated in 1988.
