Professional Employer Organization (PEO)

What is a PEO?

A PEO, short for Professional Employer Organization, is a third-party entity that partners with small and medium-sized businesses (SMBs) to provide comprehensive HR (Human Resources) solutions. PEOs are typically engaged in a co-employment relationship with their clients, wherein they share certain employer responsibilities and liabilities.

How Does a PEO Work?

When a business partners with a PEO, the PEO becomes the employer of record for the client's employees for certain HR-related purposes. This means that the PEO handles various HR functions, such as payroll administration, benefits administration, workers' compensation, HR compliance, and employee relations. The client, on the other hand, retains control over the day-to-day operations and management of their employees.

Is a PEO Right for Your Business?

PEOs are particularly beneficial for small and medium-sized businesses that may not have the internal resources or expertise to manage complex HR functions effectively. However, it's important to carefully consider your business's specific needs and requirements before engaging a PEO. Schedule a consult with our qualified team to uncover the potential value a PEO relationship could provide to your organization.

In conclusion, a Professional Employer Organization (PEO) is a valuable resource for businesses looking to streamline their HR processes, mitigate risks, and gain access to expert HR guidance. If you're a small or medium-sized business owner, partnering with a reputable PEO can help you focus on growing your business while leaving the HR responsibilities in capable hands.

The HR Tree

Our Clients