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PEO Professional Employer Organization
A PEO is a company that serves as an off-site human resources department to small and medium-sized organizations. PEOs are relationship-focused and take responsibility for HR administration plus legal and regulatory compliance issues. The quality of employee benefits in areas of insurance and workers compensation is often times improved due to the expertise and group purchasing power of a PEO Professional Employer Organization.
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Another way to look at it:
A professional employer organization (PEO) is an outsourcing firm that provides services to small and medium sized businesses (SMBs). … Through co-employment, the PEO becomes the employer of record for tax purposes through filing payroll taxes under its own tax identification numbers.
The acronym PEO stands for Professional Employer Organization. PEOs work with small businesses to help them manage payroll-related taxes, certain human resources functions, access to benefits, and other employer-related administrative functions necessary to running a business. This allows you to focus on what matters most: growing your business.
A Professional Employer Organization (PEO) helps client companies cost-effectively outsource the management of a variety of tasks like, workmans comp, payroll and others.
of payroll, workers’ compensation, human resources and employee benefits. PEOs help clients focus on their core competencies to maintain and grow their bottom line.
Professional Employer Organizations have thrived because they have helped their client companies succeed by providing:
Improved employment practices, compliance and risk management to reduce liabilities.
Relief from the burden of employment administration.
A wide range of personnel management solutions through a team of professionals.
Access to a comprehensive employee benefits package, allowing clients to be competitive in the labor market.
Definition provided courtesy of the National Association of Professional Employer Organizations – NAPEO.
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