What Is A Professional Employee Organization?
A professional employer organization (PEO) is a firm that provides a service under which an employer can outsource employee management tasks, such as employee benefits, payroll and workers’ compensation, recruiting, risk/safety management, and training & development. The PEO does this by hiring a client company’s employees, thus becoming their employer of record for tax & insurance purposes. This practice is known as co-employment. The client company remains the common law employer and will continue to direct the employee’s day to day activities.