What is a PEO?

 

 

A Professional Employer Organization (PEO) is a co-employment relationship which enables business owners to cost effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation. Businesses today need help managing increasingly complex employee related matters such as health benefits, workers' compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. They contract with a PEO to assume these responsibilities and provide expertise in human resources management. This allows the PEO client to concentrate on the operational and revenue-producing side of its operations.

 

A PEO provides integrated services to effectively manage critical human resource responsibilities and employer risks for clients. A PEO delivers these services by establishing and maintaining an employer relationship with the employees at the client's worksite and by contractually assuming certain employer rights, responsibilities and risk.

 

Businesses across America have discovered the incredible value of PEOs because they provide:

 

• Relief from the burden of employment administration

• A wide range of personnel management solutions through a team of professionals

• Improved employment practices, compliance and risk management to reduce liabilities

• Access to a comprehensive employee benefits package, allowing clients to be competitive in the labor market

• Assistance to improve productivity and profitability

 

PEOs can help their client companies:

 

• Manage the growing burden of employment law and regulation

• Save time and reduce administrative burdens

• Allow you time to focus on your business

• Reduce cost and improve cash flow

• Attract and retain talented employees