Have you ever considered partnering with a company that can offer decreased liabilities and allow your business to grow? Working with a professional employer organization offers many advantages. This basic information about PEOs can help you understand what they can do for your employees and your company.
What They Are
A PEO is a business that provides human resource services to the other companies with which it partners. Essentially, this is a firm that your business can use to outsource certain services and liabilities to ease processes that cause undue stress when done in-house. Processes that PEOs can help with include securing workers’ compensation, dealing with payroll each period and handling other human resource issues.
How They Work
PEOs partner with their clients through something called co-employment. This means that the employees within your business also become the employees of the PEO. Co-employment gives the PEO the authority needed to legally offset your liabilities and handle the other things it needs to cover.
However, just because your PEO partner becomes the employer of record does not mean you have to relinquish control of your business. In fact, this allows you to spend more time dealing with other important things while the PEO handles crucial HR services and makes your everyday work more stress-free.