PEO (Professional Employer Organization)
A Professional Employer Organization (PEO) is a firm that provides comprehensive human resources (HR) services to small and medium-sized businesses through a co-employment arrangement. Under this model, the PEO becomes the employer of record for tax and legal purposes while the client business retains control over day-to-day business operations.
Services typically offered by a PEO include:
Payroll processing and tax filing
Employee benefits administration
HR compliance and legal advisory
Workers’ compensation coverage
Employee onboarding and termination support
Training and performance management
By partnering with a PEO, businesses can streamline HR operations, reduce administrative overhead, access better employee benefits, and improve compliance with labor laws — especially in multiple jurisdictions.