A professional employer organization (PEO) is a service provider that contracts to assume certain administrative and legal functions of an employer. These functions include human resources, employee benefits, and payroll administration. The PEO relationship is consummated through the legal concept of co-employment.

What is Co-Employment?
Co-employment is a relationship between a PEO and its client company where both are legally considered employers of the same employee or group of employees. The PEO is considered the “administrative employer” and the client company is the “job site” or “worksite” employer.

A business owner seeks to make his or her company more productive, efficient, effective, and profitable. It is difficult to maximize the "business of the business" if valuable time is spent on non-productive, time-consuming tasks that do not add to the productivity and profitability of a company.

Most business owners do not have the knowledge, skill, or time to devote to human resource and risk management training, developing accounting skills, obtain and maintain current knowledge of regulatory compliance, or to learn to understand the complexities of commercial insurance and employee benefit programs.

A PEO brings comprehensive solutions to these and other complex issues facing a business owner. This allows the owner or manager to focus on the productive and profitable side of the business.

Utilizing a PEO allows you to accomplish some or all of the following: