What is a PEO?
A professional employer organization takes on payroll, benefits, HR support and compliance as your co-employer.
How co-employment works
You still run the business and manage your people day to day. The PEO becomes the employer of record for tax and benefits purposes, which lets it place your employees in large group benefit plans.
Who uses a PEO
PEOs most often serve small and mid-sized companies, commonly 5 to 150 employees, that do not have a dedicated HR department.
Questions
What does PEO stand for?
Professional employer organization.
Is a PEO the same as payroll software?
No. A PEO becomes a co-employer and pools your employees into its group benefit plans. Payroll software only runs payroll.