What XcelHR does

XcelHR is a privately held Professional Employer Organization (PEO) founded in 1993 and headquartered in Bethesda, Maryland, that delivers outsourced payroll, benefits administration, HR compliance, risk management, and talent acquisition services to small and mid-sized businesses across all 50 U.S. states. The company serves 9,000+ clients through a direct sales motion (phone outreach at 1.800.776.0076, website lead capture) supplemented by an affiliate/referral program paying up to $1,200 per successful referral. Vertical targeting spans IT/government contracting, manufacturing, skilled trades, franchise operators, healthcare, and professional services, with SMBs under 100 employees as the primary segment.

The core product is Connect, XcelHR's proprietary cloud-based HRIS that consolidates paperless onboarding, time and attendance, document management, and payroll processing. Connect is extended through integrations with TIMECO (web-based and biometric time clocks, geo-fencing, DCAA-compliant tracking for government contractors) and JazzHR (applicant tracking, background checks, e-signature offers, candidate texting). A separate Multiple Employer Plan 401(k) offered with Slavic401k adds retirement plan administration, and XcelHR holds IRS Certified PEO (CPEO) status effective July 1, 2020, which provides federally verified co-employment tax handling.

XcelHR generates revenue through percentage-of-payroll and per-employee-per-month service fees on PEO/ASO engagements, payroll processing fees (often bundled), administrative and markup fees on benefits and workers' compensation, and 401(k) MEP plan administration fees via its Slavic401k partnership. The company markets quantified outcomes of up to 40% administrative cost reduction, 7-9% faster client growth, and 12% lower employee turnover versus non-PEO companies. With 51-100 employees and offices in Maryland, Idaho, Indiana, Alabama, and New Jersey, XcelHR operates as a regional SMB-focused PEO without disclosed external institutional ownership or M&A activity.

Name

XcelHR

Legal name

XcelHR

Website

https://xcelhr.com

Company type

Private

Founded year

1993

Operating status

Operating

Headcount range

51–100 employees

Short description

XcelHR is a privately held Professional Employer Organization founded in 1993 that provides payroll, benefits, HR compliance, and risk management services to small and mid-sized businesses across all 50 U.S. states via its proprietary Connect HRIS platform.

Ownership category

akta.pro rank

Product category

Professional Employer Organization (PEO) Services

NAICS

Professional Employer Organizations (561330), Professional Employer Organizations (56133)

SIC

Services-Employment Agencies (7361)

akta.pro primary industry

Professional Employer Organization (PEO) / Co-Employment Services (BPACAHAB)

akta.pro secondary industries

HRIS/HCM Implementation & EOR Platform Services (BPACAHAJ), Core HR & HRIS (BPACAPAA), Onboarding, Offboarding & Employee Lifecycle Administration (BPACAHAL)

Keywords

• Professional employer organization
• HR outsourcing services
• Payroll processing services
• Benefits administration
• Human resources management

Headquarters

HQ city

Hudson

HQ country

United States

HQ region

North America

Offices5 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. PEO/ASO Services: Professional Employer Organization (PEO) and Administrative Services Organization (ASO) services where XcelHR becomes the co-employer of record, handling payroll administration, federal employment tax withholding/deposits, benefits administration, HR compliance, and risk management. Revenue is generated through service fees typically structured as a percentage of payroll or per-employee-per-month charges.
2. Payroll Processing: Complete payroll and tax services including processing payroll, calculating deductions, depositing federal employment taxes, and generating payroll reports. Revenue is typically bundled with PEO services or offered as standalone.
3. Benefits Administration: Access to group health plans, 401(k) retirement plans, and other employee benefits through XcelHR's collective buying power. Revenue derived from administrative fees on benefit plans and markups on insurance premiums.
4. 401(k) MEP Plan Administration: Multiple Employer Plan (MEP) retirement plan administration where XcelHR acts as plan sponsor and trustee, with Slavic401k handling back-office management. Revenue generated through plan administration fees and investment advisor partnerships.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels5 records

Core offering

XcelHR is a Professional Employer Organization (PEO) and Administrative Services Organization (ASO) that provides bundled human resources outsourcing for small and mid-sized businesses across the United States. Through co-employment arrangements, XcelHR assumes responsibility for payroll processing, federal employment tax withholding and deposits, benefits administration, HR compliance, workers' compensation, risk management, and talent acquisition. Clients access these services via the proprietary Connect HRIS platform integrated with partner technologies for time tracking and applicant tracking.

Product overview

XcelHR is a Professional Employer Organization (PEO) offering a comprehensive suite of HR services for small to mid-sized businesses. The product portfolio is organized around a core HRIS platform called Connect, which serves as the central hub for payroll processing, onboarding, document management, and employee information. This platform integrates with TIMECO for time and attendance tracking and JazzHR for applicant tracking, while the 401k MEP Plan provides retirement benefits administration through a partnership with Slavic401k. Beyond the technology stack, XcelHR provides bundled service offerings including ASO/PEO solutions, payroll and tax services, HR management, risk management, employee benefits administration, talent acquisition, and performance management—enabling businesses to outsource HR administrative functions while focusing on revenue-generating activities.

Differentiator

Problem solved

Functional benefit

Brands

• Connect: XcelHR's cloud-based, paperless human resources software that combines time & attendance, onboarding, document management, and payroll processing on one platform.

Products and services

• ASO & PEO Solutions Co-employment PEO and ASO services providing payroll administration, risk management, human resources support, and access to employee benefits for small to mid-sized businesses. As a CPEO, XcelHR acts as co-employer of record for tax and benefits purposes.
• Payroll and Tax Services Comprehensive payroll processing including tax withholding, federal employment tax filing and deposits, deduction calculations, and payroll reporting to help businesses avoid penalties and improper administration.
• HR Management Services Human resources administration including employee relations, compliance management, policy development, and HRIS software access to help businesses manage their workforce effectively.
• Risk Management Services Risk mitigation services including workers' compensation insurance administration, safety compliance, and employment practices liability protection to reduce business exposure to HR-related claims.
• Employee Benefits Administration Benefits management including health insurance, 401(k) retirement plans, accident insurance, and access to thousands of provider networks offering cost-effective benefit plans for employees through XcelHR's collective buying power.
• Talent Acquisition Services Recruiting and staffing solutions including applicant tracking, candidate sourcing, background checks, and hiring support to help businesses build their workforce efficiently.
• Connect HR Software Cloud-based, paperless human resources software combining time & attendance, onboarding, document management, and payroll processing on one platform. Features paperless onboarding with custom checklists, secure 24/7 cloud storage, IP-restricted access, and flexible reporting.
• TIMECO Time Tracking Automated, web-based time clock solution that tracks employee hours, manages scheduling, handles PTO accrual and requests, and exports time data directly to payroll systems. Includes WebClock browser tracking, hardware clocks with fingerprint technology, geo-fencing, DCAA compliance, and a mobile app.
• JazzHR Applicant Tracking Applicant tracking and recruiting platform that helps companies post jobs, manage candidate workflows, conduct interviews, and generate offer letters with e-signature capabilities. Includes unlimited job postings, customizable workflow stages, candidate evaluation templates, background checks, and video interview integration.
• 401(k) MEP Plan Multiple Employer Plan (MEP) retirement savings program allowing multiple unaffiliated businesses to participate in a single retirement plan with lower costs, no audit requirements, and integrated payroll deductions. Backed by Slavic401k for administration and Form 5500 filing.
• Performance Management Performance tracking and management tools to help businesses evaluate employee performance, set goals, and support professional development initiatives.

Quantifiable outcome

• Businesses using PEOs grow 7-9% faster than those that do not
• +3 more outcomes

Named customers5 records

Segments7 records

Ideal customer profiles5 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration3 records

Feature3 records

Partnerships

Four partnerships are on record, tiered core.

• TIMECOcoreTechnology or IntegrationPartnership with TIMECO to provide automated, web-based time clock solutions. TIMECO offers features including WebClock browser-based tracking, hardware clocks with fingerprint technology, geo-fencing, DCAA compliance for government contractors, mobile apps, scheduling management, and direct payroll integration with XcelHR's Connect platform.
• JazzHRcoreTechnology or IntegrationPartnership with JazzHR to provide applicant tracking software with unlimited job postings, customizable workflow stages, candidate evaluation templates, background checks, video interview integrations, e-signature offer management, compliance reporting, and candidate texting capabilities.
• Slavic401kcoreTechnology or IntegrationPartnership with Slavic401k as the back-office administrator for XcelHR's 401(k) Multiple Employer Plan (MEP). Slavic401k handles day-to-day plan management including enrollment processing, plan trades and contributions, Form 5500 filing, and annual nondiscrimination testing. Investment advisors assist clients with investment decisions.
• Insurance Carriers (Benefits Network)coreStrategic or Co-development PartnerNetwork of insurance carriers providing access to group health plans, accident insurance, and other employee benefits. XcelHR leverages collective purchasing power of its 9,000+ clients to negotiate favorable rates typically available only to large Fortune 500 companies.

Scale indicators4 records

Recent moves6 records

Expansion highlights5 records

Emerging players

• Rippling: Unified workforce management platform combining HR, payroll, IT, and PEO services for SMB and mid-market — partial overlap with XcelHR's bundled HR/payroll/benefits offering, differentiated by integrated IT device management.
• Gusto: Cloud-based payroll, benefits, and HR platform expanding into PEO services for very small businesses — comparable SMB target with similar value proposition but technology-native delivery model.

Broad incumbents

• ADP TotalSource: PEO division of ADP, one of the largest workforce management providers globally — overlapping SMB PEO offering as part of broader payroll/HR portfolio with substantially greater scale and brand recognition.
• Paycor: HCM provider offering payroll, benefits administration, talent management, and PEO services to SMB and mid-market — overlapping offering with XcelHR but broader portfolio across multiple HR functions.
• Paychex PEO: PEO and HR outsourcing arm of Paychex, a major payroll and HR solutions provider — directly comparable PEO service for SMBs with significant technology and sales infrastructure advantages.

Direct peers

• ExtensisHR: Mid-sized PEO providing payroll, benefits, HR technology, and risk management to SMBs across multiple industries — closely comparable scale, business model, and target customer profile to XcelHR.
• Oasis Outsourcing: PEO providing co-employment, payroll, benefits, and HR outsourcing primarily to SMBs — comparable business model and customer profile to XcelHR with similar scale.
• TriNet: PEO focused on small and mid-sized businesses offering co-employment, payroll, benefits, and HR technology — closely aligned GTM targeting the same SMB segment with similar service bundling.
• Justworks: Tech-forward PEO serving SMBs with bundled payroll, benefits, compliance, and HR support — comparable target market and product structure, differentiated by modern technology stack and venture-backed growth.
• Insperity: Large publicly-traded PEO serving SMB and mid-market clients with bundled HR, payroll, benefits, and workforce solutions — directly comparable business model and target customer to XcelHR, though at significantly greater scale.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/xcelhr
• Facebookfacebook.com/xcelhrbusiness
• LinkedInlinkedin.com/company/xcelhr

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about XcelHR