PEO Defined

A Professional Employer Organization or “PEO” provides a company or business owner with a one-stop solution to accomplish many business tasks in an affordable manner. A PEO enters into a co-employment relationship with an employer, thereby assuming much of the responsibility and liability for daily employment related business functions.

Every company must perform basic functions in support of core profit generating activities. These functions may include: payroll services, human resources management, safety management, tax law compliance, and insurance management to name just a few.

In addition to the core functions already described, many PEO companies will provide employers with other beneficial services, including various employee pay options like direct deposit or even representation when dealing with tax authorities.

PEO companies accomplish these valuable business functions through the principle of economies-of-scale. Since a PEO can shop insurance markets while representing a large group of employees, the PEO can command far better rates than an individual company shopping for the same products.

Unlike staff leasing companies, PEOs use a permanent co-employment relationship. When utilizing a PEO service, your employees remain under your personal control, the co-employment relationship is permanent until such time you decide to stop utilizing the PEO service and return your functions in-house or employ another PEO service.

Professional employer organizations lower the cost of doing business, accomplish non-essential core business functions, and allow companies and business owners to focus their attention and energy on the important functions that generate profit. Contact a PEO Link broker today to find out how a PEO can benefit your company, and lower your cost of doing business!

Utilizing a PEO service can provide a business owner with advantages in many key areas including:
Worker's Compensation

PEO services can provide an employer with worker’s compensation insurance at greatly discounted prices by using the co-employment relationship, and the principle of economies-of-scale to achieve better rates from insurance providers.

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PEO services accomplishes a companies entire payroll function at a significant time and labor cost savings to the employer. The PEO assumes responsibility and liability for employee pay and compliance with federal and state employment law.

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Human Resources Management

PEO services specialize in human resources management including important functions like hiring/firing and employee safety management. Also, a PEO assumes responsibility for implementation and compliance with federal and state employment laws.

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In addition to worker’s compensation insurance, PEO services use economies-of-scale to provide employers with outstanding choices in employee benefits packages.

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Tax/Business Law

Companies that utilize PEO service receive the benefit of tax and business law experts, making sure the employer maintains compliance with often complex national, state, and local laws and codes.

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