What is a PEO?

The simplest answer to this question would be an “administrative employer”.  Without overwhelming you with detail, that means a Professional Employer Organization (PEO) contracts with a client to handle pretty much all things related to the administrative side of employment.  Typically that includes payroll, benefits, HR, workers’ compensation and risk management.

If you are interested in more through information (such as history and/or regulation of the industry), there are several excellent resources, such as Wikipedia and the industry’s leading association NAPEO.  For now though, we’ll move on to the benefits of using a PEO.

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