The National Association of Professional Employer Organizations (NAPEO) defines co-employment as a contractual allocation and sharing of certain employer responsibilities between the Professional Employer Organization and the client, as outlined in a contractual agreement. This arrangement transfers a significant portion of the risk and liabilities associated with employees to the PEO and allows the client to offer enhanced benefits. A PEO often assumes the responsibilities of payment of wages and employment tax compliance, reporting, collecting and depositing state and federal taxes, and workers’ compensation coverage and management. The PEO may engage with worksite employees regarding specific human resource matters or employment compliance issues, while the client company remains in control of the day-to-day operations and the manufacturing, production and delivery of products or services. Every contractual agreement is unique and developed based on your specific service delivery needs.
A PEO manages all your HR responsibilities so you can get back to business.
Professional Employer Organization
A Professional Employer Organization (PEO) enables businesses to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation while focusing on their core competencies to run their business and grow the bottom line.
Businesses today need help managing increasingly complex employee related matters such as health benefits, workers’ compensation claims, payroll, payroll tax compliance and unemployment insurance claims. A PEO provides services to effectively manage critical human resource responsibilities and employer risks for clients. They deliver these services by establishing relationships with the client’s employees and administering certain employer rights, responsibilities, and risks as agreed with the client. Often times, this is done through a co-employment relationship.
What is co-employment?
Why use a PEO?
- Access to professional HR services including employee handbooks, policies and procedures, recruiting assistance, background checks, time and attendance systems, performance management, job descriptions and much more
- Obtain better group benefits packages to attract and retain key talent
- Enhance compliance with state and federal laws and regulations to avoid fines and lawsuits
- Improve risk management practices to reduce liabilities
- Reduce turnover
- Enhance employee morale
- Attract better employees
- Guidance on worksite employee issues
- Improve efficiencies by saving time and reducing paperwork
- Simplify claims management for workers’ compensation and unemployment insurance