A Professional Employer Organization (PEO) is a company that provides comprehensive human resource services to small and medium-sized businesses. These services include payroll processing, employee benefits administration, risk management, and compliance with employment laws and regulations. The PEO acts as a co-employer, meaning that they share certain employer responsibilities with the client company, such as hiring, firing, and managing employees. This allows the client company to focus on their core business while the PEO handles the administrative tasks. PEOs also offer access to a larger pool of benefits and resources, typically at a lower cost, due to their economies of scale. They can be a valuable resource for businesses looking to streamline their HR processes and reduce costs.
