Professional Employer Organization
A professional employer organization (PEO) is a firm that provides the following services to small and medium sized businesses.
- Employee Benefits
- Human Resources
- Tax Administration
- Workers’ Compensation
- Regulatory Compliance Assistance
How Does it work?
The key to a PEO is co-employment. Co-empoyment is a true partnership between the PEO and the client company. In co-employment, the PEO becomes the employer of record for tax purposes.
PEOs do not:
- Manage your employees
- Set employee wages or work assignments