PEO Company or Professional Employer Organization

A PEO or Professional Employer Organization helps companies effectively contract out the administration of human resources, payroll and benefits. A PEO company lets clients grow their bottom line by removing the areas that do not generate revenue, take up valuable space and require several full time employees to manage. By creating and upholding an employer relationship with the client’s employees, the PEO company delivers services and assumes certain rights, risks and responsibilities, such as withholding payroll taxes, calculating benefits and paying unemployment.

Today more than ever businesses need help managing the increasingly complex world of employee related matters like health benefits, workers' compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. Appointing a PEO company enables smaller businesses to share responsibilities of several departments while providing proficiency in human resources management. This allows PEO company clients to focus on the operational, day-to-day and revenue-producing side of their business rather than the complex and highly specialized HR, payroll and benefits departments. A PEO assumes responsibilities and liabilities for payment of wages and compliance with all rules and regulations governing the reporting and payment of federal and state taxes on wages paid to its employees. The IRS recognizes a PEO as the employer of record for federal income and unemployment taxes even though the employees work for your company.

You have access to a team of specialists with a PEO company who supply expertise in a number of areas, including human resources, compliance, payroll, benefits, and risk management. Your company can offer high quality benefits not available with your competition, so you're able to attract better employees. With a PEO company, you retain the management and control of your employees including salary and scheduling, but leave the administrative responsibilities to a Professional Employer Organization. A PEO company provides high-performance HR solutions and relief from administrative duties for busy business owners who want to spend more time building a business and less time with the employer obligations that come with running the business. You let your PEO company manage and worry about paperwork, while you do what you do best: running your company.