A Professional Employer Organization or PEO uses their service agreement to create a shared employment relationship with the client to assist in the areas of payroll, employee benefits, workers’ compensation and human resource administration. By creating the shared employment relationship, the client’s employees are pooled with the PEO’s current employees to give them large group buying power. The PEO handles payroll, taxes and unemployment administration, human resources compliance as well as compliance with the Affordable Healthcare Act regulations. This tremendous benefit greatly reduces the work associated with day-to-day HR, allowing the client to focus on profit generating areas of their business.