Definition
The shared employer relationship between you and a PEO, with responsibilities divided by contract.
Co-employment explained
Under co-employment, the PEO is typically the employer of record for payroll taxes and benefits, while your company directs the work and remains responsible for the workplace. The client service agreement spells out who handles what.
Co-employment is what lets a PEO sponsor large-group benefits and master insurance policies. It doesn't transfer ownership of your business or your control over employees.
Also referenced in: Worksite employee · ASO · Staffing agency