What Is A PEO?

Professional Employer Organizations: What Are They?

A Co-Employer of Sorts

In the fast pace of business, we continually look for ways to get things done more quickly, more efficiently and for less cost. The same holds true for Human Resource responsibilities.

A PEO does all that and more. A Professional Employer Organization, or PEO, becomes a co-employer to your employees. Your PEO then takes on the responsibility of handling your employee payroll and employee taxes; provides your employees with benefits; and assumes the responsibility of Workers’ Compensation, labor law compliance and risk management.

Basically, your PEO gives you the time to do what you really should be doing — handling the day-to-day tasks of maintaining and growing your business. And, all for less than it would cost to have the experts on staff.

The Direction of Business

Like test driving a new car or changing dry cleaners, businesses like yours shop for a PEO that meets their individual needs and the needs of their employees. The PEO industry is growing by more than 35% every year. Ten years ago, the industry was in its infancy. Today, there are more than 2,000 PEOs in the United States, co-employing more than two million workers, from lawn maintenance workers to lawyers. It’s the direction business is taking.

To you, the business owner, the perks of having a PEO are obvious. To your employees, the benefits of having a co-employer arrangement are enormous and the transition is little more than a hiccup in their normal work day.