Definition
A company that becomes a co-employer of your staff and handles payroll, benefits, workers' comp and HR compliance under one agreement.
PEO explained
A professional employer organization takes on employer responsibilities for your employees, such as running payroll, filing employment taxes and sponsoring benefit plans, while you keep control of hiring, firing and day-to-day work. Because the PEO pools many small employers, it can often offer benefits and insurance a small company couldn't get alone.
NAPEO counts about 500 PEOs in the US. They range from national firms such as ADP TotalSource, Insperity, TriNet and Justworks to regional and industry-specialist PEOs.
Where PEO comes up
Services
Guides
Also referenced in: Certified PEO · ESAC accreditation · NAPEO · Employer of record · HRIS · Staffing agency