What Is a Professional Employer Organization (PEO)? PEO is sometimes referred to as an employee leasing company—is an HR Services company that is contracted by small companies to take over certain administrative functions, such as payroll processing, employee benefits, tax, and insurance far easier and recruitment, to businesses. The PEO is responsible for maintaining the whole HR administrations. The employee with the company becomes the co-employee of the PEO. As an employee, works in an organization, but the total HRrelated tasks of an employee from their joining to the relieving are taken care of by the PEO.
PEO a Co-Employer to your Employee: PEO/AMS isn't so new ideas or concepts for SME’s, PEO is an organization which keeps up a healthy relationship/organization with an SME’s, to provide them a committed HR management services and advantages administration partner through a firm to firm relationship called co-employment.
The ability to scale up or down your HR services without any effect on your infrastructure. Responsible for Employment risk. A PEO will undertake all the Human Resource service management of the client company. The company business owner need not worry about the HR consulting and HR operations and can focus on the core firm process and the rest left with the PEO.
Some of the duties performed by PEOs include: Payroll services, including automated deposits and one-time payments to both full-time and part-time employees as well as vendors Employee benefits, ranging from medical, dental, vision, workers’ comp claims. Compliance functions related to payroll taxes, employee tax forms, and Internal Revenue Service (IRS) forms and reports Access to experts in all areas covered by the PEO Workplace risk management and safety Customized employee handbook designs Recruitment and pre-employment screening.