What is a PEO?

Professional employer organizations (PEOs) provide human resource services for their small business clients – paying wages and taxes and often assisting with compliance with myriad state and federal rules and regulations. In addition, most PEOs also provide workers with access to 401(k) plans, health, dental and life insurance, dependent care, and other benefits not typically provided by small businesses. In doing so, they enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation. PEO clients can thus focus on their core competencies to maintain and grow their bottom line.

With a PEO, you maintain control over the management of your employees. The PEO handles the HR management and benefits administration, including managing payroll, benefits, and workers’ compensation while also providing access to quality health care plans at discounted rates and strategy support as it relates to Health Care Reform.

When you partner with a PEO in a co-employment relationship your company shares responsibilities and risks with the provider. Your PEO stays up to date on annual changes to laws, regulations, and other requirements including Health Care Reform, reducing the impact of those changes to your company.

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