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How PEO's Work

PEO's exist through a relationship called co-employment.
You maintain control of all business decisions and operations,
while the PEO manages all personnel-related functions
(payroll, benefits, HR, workers’ compensation, etc.).

The client employer maintains control of all business decisions and operations
while the co-employer manages all employee-related aspects of business operation
(wage and benefits administration, I-9s, W-2s, etc.).


PEOs do not supply a workforce; they supply HR services and benefits
​to your company and its existing workforce. 
​
Common Misconceptions
Although the PEO industry is more than 30 years old, some common misconceptions persist.

Loss of control
PEOs provide access to seasoned HR professionals, whose guidance and advice can help manage the employee-related aspects of your company, but you maintain control of all business and operational decisions.

Worry that employees may not embrace the relationship
There is minimal, if any, disruption to employees when you work with a PEO. They will see that they are being paid through the PEO and your company, but will likely appreciate the greater depth and breadth of benefits offered as a result.
​

Worry that existing HR staff will be terminated
PEOs often align with your company’s existing HR department to provide much-needed expertise. External resources can prove invaluable when you are faced with high-risk HR situations. 

Will a PEO fit my business?

Are you qualified to join a PEO?
Are you paying more money managing HR, benefits, payroll on your own.
​Find your FitScore to see if a PEO could help your business. 
Find your fitscore
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September 2024
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  • Home
  • What is a PEO?
  • Who uses a PEO?
  • fitScore
  • KnowPEO
  • Contact