PEO Overview

A professional employer organization (PEO) is an organization that provides comprehensive human resources services for small and medium-size businesses. PEOs

process and pay employee wages and employment taxes and provide benefit options and HR regulation compliance guidance. PEOs play a strategic role in growth for small and medium size businesses.

PEOs operate under a co-employment model in which the PEO, as a co-employer, is the employer of record for tax purposes and is responsible for collecting and remitting payroll taxes for employees on its platform. The client maintains control over workforce decisions, like hiring, firing, compensation and culture.

Benefits of Using a PEO

  • Businesses that use a PEO are 60% more likely to succeed.
  • Your employees received more/better benefits.
  • You save money on your insurance.
  • Your HR software is centralized into one solution.
  • You’ll receive HR service and support whenever you need it.
  • Eliminate the need for admin and paperwork – a PEO manages all the paperwork for all employees.
  • Reduce employee turnover and keep employees happy.
  • Access better health, IRA, 401k plans, etc.
  • Improve your recruiting efforts – hiring, training, handbooks, interviews, etc. can all be handled by the PEO
  • Ensure compliance with all state and federal regulations – laws are changing constantly, and as a business owner, you don’t have the time to deal with and keep up-to-date on each. The PEO’s job is to advise you on those changes, especially in higher regulation states.