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A Professional Employer Organization, or PEO, is a one-stop service provider that allows business owners to concentrate on running their businesses without getting bogged down in administrative headaches. It also allows them to provide employees with benefits that would normally only be available at much larger companies.
Employees that are part of a PEO are often able to participate in medical and health programs, retirement, and supplemental benefits and are covered by the PEO’s workers’ compensation policy. The business owner doesn’t have to worry about making these complex arrangements. PEO’s take care of the payroll, including everything from printing the checks to reporting and paying the employment taxes. PEO’s provide human resources and compliance expertise, all while the business owner remains in control of the day-to-day business operations.