What is Co-Employment?

A Professional Employer Organization, or PEO, shares employer responsibilities with clients and assumes employer rights, responsibilities and risks. Under its contractual relationship, the PEO:

Co-employs workers at client locations, and thereby assumes responsibility as an employer for specified purposes of the workers assigned to those locations
Reserves a right of direction and control of the employees
Shares or allocates with the client employer responsibilities in a manner consistent with maintaining the client's responsibility for its product or service
Pays wages and employment taxes of the employee from its own accounts
Reports, collects and deposits employment taxes with state and federal authorities
Establishes and maintains an employment relationship with its employees that is intended to be long term and not temporary
Retains a right to hire, reassign and fire the employees

Client Service Agreements: Defining the Profession Employer Organization - PEO Terms

A Profession Employer Organization - PEO uses a contract called a Client Services Agreement (CSA) to delineate the roles and responsibilities between the client company and the PEO. This is a critical document for all PEO customers to understand. View an example PEO Client Services Agreement . Please keep in mind that every PEO has different terms and provisions in their agreements. Contact StaffMarket if you have a question about the CSA.

Please note: Alternate HR Outsourcing options are available without PEO / Co-employment provisions. Please visit our HR Outsourcing area if a co-employment relationship is not what you are seeking.

StaffMarket Services, LLC
431 12th Street West, Suite 202
Bradenton, Florida 34205 (get map)
Phone: 941-750-9450 - Fax: 877-471-5608
Office hours are 9:00am to 5:00pm EST
Send e-mail to: StaffMarket Information

National Association of Professional Employer Organizations

StaffMarket Sitemap