PEOs Explained
Professional
employer organizations (PEOs) allow their clients to
cost-effectively outsource the management of human resources,
employee benefits, payroll and workers compensation via a
co-employment relationship.
Employers today
need help managing increasingly complex employee related matters
such as health insurance, workers' compensation, payroll,
payroll tax compliance, and unemployment insurance claims. Many
choose to contract with a PEO so that they can transfer these
responsibilities and provide expertise in human resources
management. The arrangement better enables the PEO client to
concentrate on sales, marketing, and revenue-producing areas of
its operations.
PEOs provides
integrated services to help effectively manage critical human
resource responsibilities and employer risks for clients. They
delivers these services by establishing and maintaining an
co-employer relationship with the employees at the client's
worksite and by contractually assuming certain employer rights,
responsibilities, and risk.
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