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PEO stands for Professional Employer Organization. A PEO assumes the administrative functions of a human resources department and assists businesses with managing complex employment tasks.
The PEO Company becomes the “employer of record” for employment and benefit purposes, thereby assuming many of the responsibilities and liabilities of the client company.
By creating the “co-employment” relationship the client's employees are pooled with the PEO’s current employees to give them large group buying power.
A PEO offers services such as Payroll Administration, Employee Benefits, Human Resource and Compliance, Risk Management and Workers’ Compensation Management, as well as many other services.