PEO 101: What is a PEO?

PEO Stands for Professional Employer OrganizationYour Employer Partner

A PEO, Professional Employer Organization, enables clients to responsibly and cost-effectively offload the management of human resources and other employment-related tasks including employee administration, workplace safety, compliance, unemployment and workers compensation claims, risk management, benefits, payroll, payroll tax compliance and more.

How Does a PEO or Professional Employer Organization Arrangement Work?

Through this co-employment arrangement, the client and the PEO contractually share employer responsibilities and liabilities. PEO clients are enabled to focus on their core competencies to maintain and grow their bottom line, while the PEO concentrates on what they do best: HR!

Once engaged in a PEO or co-employment contract, the PEO co-employs the client’s worksite employees. Moving forward, both the PEO and the client have an employment relationship with all employees. Although employer responsibilities are shared between the two organizations, the PEO assumes much of the liability and management surrounding employment. As a co-employer, the PEO often provides its employees with complete human resource and benefits packages.

Who does a PEO serve?

Businesses within every industry can find value in a PEO relationship. Although the average PEO client has about 19 employees (according to, larger businesses also find value in outsourcing HR management and employment-related tasks.

Even companies with existing HR departments become engaged with a PEO because of the HR technologies and additional resources offered through the co-employment relationship.

Whether a company consists of 15 employees, or 500, each has their own specific list of HR and employment needs that a PEO can assist with. With over 800 PEOs operating within the United States, locating the perfect fit can be difficult; but the perfect fit with an entirely customized solution specific to your HR needs is certainly attainable with the assistance of a PEO broker.

What are the Business Advantages of Using a PEO?

  • PEO Clients Save Money
  • Improved Productivity and Profitability
  • Better Communication
  • Better Benefits Packages for your Employees
  • Expert PEO Help with Risk Management and Compliance
  • Reduced Liability
  • Access to Specialized (and Expensive) Technology
  • Streamlined Payroll and Claims Processing
  • PEOs Help Attract and Retain Top Employees
  • Improved Job Satisfaction for Your Employees
  • More Time to Focus on Growth
  • Relief from the burden of HR, and much, much, more!

Your PEO benefits are waiting. Call 877-326-9060 or Get a Free Quote Online today to find the best Professional Employer Organization for you.