Professional Employer Organization (PEO)
GeneralFeaturedA firm that provides comprehensive HR services to small and medium-sized businesses through a co-employment arrangement, sharing certain employer responsibilities.
A Professional Employer Organization (PEO) provides comprehensive HR services to small and medium-sized businesses through a co-employment relationship. Unlike an EOR, a PEO shares employer responsibilities with the client company.
Key PEO services include:
- Payroll processing and tax administration
- Employee benefits administration
- HR compliance and risk management
- Workers' compensation insurance
- Employment law guidance
Examples
Small Business HR Support
A 50-person company partners with a PEO to access enterprise-level benefits and HR expertise without building an internal HR department.
Common Use Cases
- •Small to medium-sized business HR outsourcing
- •Access to better employee benefits
- •HR compliance management
- •Risk mitigation and insurance