Frequently Asked Questions
Professional Employer Organization
Q: What is a PEO?
A: A Professional Employer Organization, or PEO, provides companies with outsourced HR services, such as payroll, state unemployment insurance, Worker’s Compensation, and employment law compliance assistance.
PEOs do this through a shared tax ID with their client company—a model known as “joint employment” or “co-employment.” This arrangement allows the client company to transfer many of its key employer responsibilities to the PEO, while continuing to manage their employees’ day-to-day activities.