Types of Professional Employer Organizations

PEO Terms
Over the last 20 years Professional Employer Organizations (PEOs) have searched for a common definition that was uniquely identifiable to the public. Terms include: 

• Professional Employer Organization - PEO

• Employee Leasing Company 

• Staff Leasing Company 

• Human Resources Outsourcing Organization - HRO 

• Administrative Services Organization - ASO

PEO Services
Some industry members have tried to define each of these terms differently in an attempt to differentiate their company's offerings. Unfortunately, this has left consumers of PEO services confused about the PEO arrangement and its value for business owners. At StaffMarket we define a PEO as any company offering to assist businesses with: 

• Payroll Services
• Workers' Compensation Insurance 
• Safety and Risk Management
• Employee Benefits
• Health Plans
• Human Resources
• Employment Related Regulatory Compliance

 Types of PEO Arrangements

“Classic” PEO

PEO - ASO

Employer of Record Responsibilities

Employee taxes reported and deposited under the PEO’s FEIN.

Employee taxes reported and deposited under the PEO’s FEIN.

Employee taxes reported and deposited under the Client’s FEIN.

Workers’ Compensation Insurance

Coverage provided under PEO’s master policy. 

Coverage may be provided by policy in client's name.

Coverage provided by policy in client's name.

Safety and Risk Management

Claims management provided by PEO. Safety programs compliance administered by PEO.

Claims management provided by PEO.  Safety guidance provided by PEO.

Claims management provided by PEO.  Safety guidance provided by PEO.

Health Plans

Coverage offered under PEOs master policy. 

Coverage may be provided by policy in client's name.

Coverage provided by policy in client's name.

Employee Benefits

Supplemental benefits offered under PEO's master policy. 401K provided by policy in client's name.

Supplemental benefits may be offered under PEO's master policy. 401K provided by policy in client's name.

Supplemental benefits offered by policy in client's name. 401K provided by policy in client's name.

Human Resources

Multitude of services offered in either “a la carte” or bundled pricing.

Multitude of services offered in either “a la carte” or bundled pricing.

Multitude of services offered in either “a la carte” or bundled pricing.

Regulatory Compliance

Provided by PEO.

Provided by PEO.

Client’s responsibility.