A Professional Employer Organization (PEO) is an organization that establishes a join-employment relationship with some employer. The responsibilities of this relationship go both ways. In exchange for the PEO allowing the employer to lease employees from it, the PEO is then permitted to partake in many of the tasks that are performed by the employer on a regular basis. The employer also outsources several main elements of human resources, usually including employee payroll administration, compensation and benefits, as well as employment taxes and workers’ compensation. If a business-owner is looking for ways to take a major step forward in expansion, a PEO is a solid way of doing it.
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