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A PEO, or Professional Employer Organization, is an administrative service provider which acts as the employer of record for many of the non-revenue generating activities such as payroll, worker’s compensation, human resources and employee benefits, while relieving the client of the associated administrative burdens. PEO’s deliver these services by establishing a co-employment relationship with their clients through a service agreement.

 

A PEO’s primary function is to allow you to outsource administrative activities that are keeping you from focusing on your core business. YOU are responsible for hiring, firing, direction and control, wages, etc. The PEO is in no way assuming any of these responsibilities, nor do they want to. A commonly asked question is, “am I losing control of my business or employees?” The answer is a definite, NO!

 

The co-employment relationship exists to your benefit. For example, the IRS recognizes the PEO as the employer of record for all payroll activities. That means the PEO is responsible for the processing of checks, making tax deposits, filing all tax reports, W-2 issuance, and all other regulatory issues associated with payroll. All you do is report the hours via internet or fax, and let the PEO do the rest.

 

The same works with Worker’s Compensation coverage. The PEO covers all of their clients under the PEO’s master policy. You no longer have to maintain your own worker’s compensation policy. The PEO buys it’s coverage at reduced rates based on its large group of employees, and passes those economies of scale onto you. Claims handling is the PEO’s responsibility, and is handled by a core group of professionals, dedicated to fighting fraud and getting your employees back to work.

 

As a professional employer, with years of experience and expertise in the areas of personnel management, payroll and worker’s compensation, a PEO brings a new level of support and assistance to their clients. Now you have a “partner” in the everyday grind of compliance and regulations, that is watching your back as if was their own. Remember, the PEO has a vested interest in taking care of their clients and keeping them in compliance and out of trouble.

 

Find out what Fortune 500 companies are finding out...that PEO’s work!