A Professional Employer Organization (PEO) helps client companies cost-effectively outsource the management of payroll, workers' compensation, human resources and employee benefits. PEOs help clients focus on their core competencies to maintain and grow their bottom line.
Businesses today need help managing increasingly complex employee related matters such as health benefits, workers' compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. Engaging a PEO enables companies to share these responsibilities and provide expertise in human resources management. This allows PEO clients to focus on the operational and revenue-producing side of their business.
PEO companies provide an integrated service to effectively manage human resource responsibilities and employer risks for their clients. A PEO delivers these services by establishing and maintaining an employer relationship with the employees at the client's worksite and by contractually assuming certain employer rights, responsibilities and risk.
Definition provided courtesy of the National Association of Professional Employer Organizations - NAPEO.