PEO 101 : What is a Professional Employee Organization?
A PEO is an outsourcing service, retained by a client company to manage and administer employee needs. This allows the client company to manage only the employees day-to-day activities and reduce its HR responsibilities. This practice is called “co-employment”. PEOs offer savings to client companies by establishing large employee pools and passing on quantity discounts.
A PEO establishes co-employment by hiring the client company’s employees and becoming their “employer of record”. As the employer of record the PEO files the employee’s local, state and federal taxes under its own tax IDs. It also assumes responsibility for managing employee needs. This may include: payroll and tax processing, benefits administration, risk management and regulatory compliance.
The PEO and client company work together to determine which PEO services will be provided. The goal is to optimize the client company’s business model while meeting the needs of the employees. An in-depth discovery process is key to determining the most beneficial fit. The process entails establishing good communications, completing forms and supplying relevant documentation.
With AcriSource, The Starr Group Is Dedicated To Finding The Best PEO For Your Business.
AcriSource is positioned to bring multiple cutting edge solutions to the table. We work with leading national PEOs who provide integrated, cost effective services. AcriSource can help you choose the best PEO to meet your clients needs – current, correct and consistent.