A Professional Employer Organization (PEO) is a company that partners with businesses to manage Human Resource (HR) functions such as payroll, employee benefits, risk management, HR management and recruiting.
Through a co-employment arrangement, the PEO handles administrative tasks and becomes the official employer of record for tax and insurance purposes, while the business continues to direct day-to-day operations and employee management. This arrangement allows businesses to streamline HR processes and reduce administrative burdens.
A PEO enters into a co-employment relationship with your business, meaning the PEO becomes the employer of record for your employees. This allows the PEO to manage HR-related tasks while you maintain control over your business operations.
Businesses of all sizes and industries use PEO services, particularly small to mid-sized companies looking to offer competitive benefits and reduce administrative burdens.
Your employees will receive benefits and HR support through the PEO, which can include improved benefits packages and professional HR services. Day-to-day management and business decisions remain with you.
No, PEOs are beneficial for businesses of all sizes. They are particularly advantageous for small and mid-sized companies that may not have the resources to manage HR functions internally.
PEOs have HR experts who stay updated with the latest federal, state, and local employment laws. They manage compliance issues, reducing the risk of fines and penalties for your business.
No, you retain control over your business and its operations. The PEO handles administrative HR tasks, while you continue to manage daily business activities and employee performance.
PEOs manage all aspects of payroll processing, including wage calculation, tax withholdings, direct deposit, and compliance with wage and hour laws. This ensures accurate and timely payments to employees.
PEOs handle all payroll tax filings and ensure compliance with federal and state tax laws. This reduces the administrative burden on your business and minimizes the risk of tax-related issues.
Yes, PEOs are regulated at both the federal and state levels. Many states require PEOs to be licensed or registered, and accredited PEOs are audited regularly to ensure compliance with industry standards.
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.