Q & A
What is a PEO?
Professional employer organizations (PEO’s) enable clients to cost-efffectively outsource the management of human resources, employee benefits, payroll and worker’s compensation. PEO clients focus on their core competencies to maintain and grow their bottom line.
Who uses a PEO?
Any business can find value in a PEO relationship. Employers with 2 or more employees in any industry can benefit from PEO services.
How does a PEO arrangement work?
When a client company contracts with a PEO, the PEO will co-employ the client’s worksite employees. In the PEO leasing agreement a co-employment relationship is established. This relationship allows the PEO and client company to share responsibilities and libabilities for the employees. The PEO assumes much so the responsibility and liability for the business of employment, such as risk management, human resource management, and payroll and employee tax compliance. The client company retains responsibility for the management of the employees.
Do I lose control of my business?
No. The client company retains ownership of the company and control over it’s operations. The PEO simply handles the back office employer administration needs.
How will my employees benefit from a PEO arrangement?
Through a PEO relationship, employers can offer employees benefits and programs that might not be available before. PEO’s offer quality benefit packages for employees to enroll in, as well as safety and risk management team for training and compliance concerns.