What is a Professional Employer Organization (PEO)?

Professional Employer Organizations provide comprehensive HR services administered by experienced professionals without the overhead of in-house staff. The service is a cost effective means of outsourcing employer HR responsibilities such as benefits, payroll, workers compensation, and more.

Professional Employer Organizations (PEO) – In the increasingly complex world of employee benefits, PEOs give you the help you need to minimize cost and maximize efficiency while you focus on your core competencies and grow your bottom line. PEO’s are a “co-employment” model. Everything, including payroll is outsourced to the PEO. Clients are billed for all services rendered. PEOs are also known as Employee Leasing. PEOs offer:

  • Complete Payroll services and support, including tax payments
  • Insurance Benefits of all types and 401k options
  • Workers’ Compensation Claims management/training
  • Employee liability insurance (EPLI)
  • Payroll Tax Compliance
  • Unemployment Insurance Claims management/training

Professional Employer Organizations (PEOs) enable clients to cost-effectively outsource the management of Human Resources, employee benefits, workers’ compensation and payroll through employee leasing. PEO clients focus on their core competencies to maintain and grow their bottom line.

Businesses today need help managing increasingly complex employee benefits 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, while saving on the funds that would be required to manage necessary human resources roles. PEO clients save money on human resources related expenses while still being capable of offering more complicated human resources products to their employees.

Employee leasing through 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 and by contractually assuming certain employer rights, responsibilities and risk.