FREQUENTLY ASKED QUESTIONS:
Professional Employer Organizations (PEO) enter into a co-employer
relationship with clients, which allows them to share and manage many employer-
related liabilities and responsibilities. Clients outsource their human resources
to the PEO and maintain control of their companies, while the PEO provides
human resource services, employee benefits, payroll administration and workers
compensation. The National Association of Professional Employer Organizations
(NAPEO) estimates there are 700 PEOs in the United States employing 2.5
million workers. They range from construction companies and trucking companies to
attorneys and doctors offices.
Co-Employment is the contractual arrangement between the client and the PEO
that allows the PEO to provide a full range of services and to transfer or share many
employer liabilities. Each party is responsible for certain employment obligations,
and each party shares responsibility for other employment obligations.
You are NOT an employment expert. You do not have the time or the experience
to become a human resources expert, and at the same time grow your business. Let a
quality PEO help you manage your human resources, become more strategic and
systematic about the success of your company.
Many times, a PEO arrangement is the only way a small business can offer benefits like
health insurance, dental and vision care, life insurance and 401(k)s. Most small businesses
just couldn't afford or manage these benefits on their own.
The bottom line is PEOs can help small and midsized employers enjoy the same HR
benefits as large companies without the considerable overhead. A PEO costs less than
hiring an internal HR employee and will maintain critical employment records and payroll
reports, as well as provide the forms needed to make sure you are in compliance with
all required employee regulations.
