PEO
PEO - What is a PEO or Professional Employer Organziation and Co-employment
A Professional Employer Organization (PEO) is a company that contractually assumes critical human resource responsibilities and certain employer risks for its clients. When a company contracts with a PEO a “co-employment” relationship is created between the PEO and its client. Co-employment is a relationship wherein the PEO acts as the Administrative employer and the client acts as the Worksite employer. The PEO assumes responsibilities related to workers compensation, human resources, labor law compliance, employee benefits, payroll, and employer taxes. The client maintains control and manages its employees, product development, marketing, sales and service.
Professional Employer Organizations have thrived because they have helped their client companies succeed by providing:
- Improved employment practices, compliance and risk management to reduce liabilities.
- Relief from the burden of employment administration.
- A wide range of personnel management solutions through a team of professionals.
- Access to a comprehensive employee benefits package, allowing clients to be competitive in the labor market.