The PEO assumes many employment responsibilities and risks, while the worksite employer retains essential management control over the supervision and direction of the work and over the production and delivery of products and services.

The following scenarios describe the roles of each employer in a PEO relationship:

  • The PEO becomes responsible for the payment of wages in the co-employment relationship, as well as the management of workers’ compensation claims and various other administrative functions related to the assigned employees.
  • The PEO handles the regulatory paperwork and compliance issues.
  • The PEO can give managers advice on proper termination procedures, proper disciplinary procedures and more.
  • The PEO provides the worksite employer and/or its worksite employees with workers’ compensation insurance, unemployment insurance, Employment Practices Liability Insurance (EPLI), a 401(k) plan, health insurance, a Section 125 Plan, voluntary insurance products and a broad range of other employee benefits programs.
  • The worksite employer remains responsible for directing and controlling the daily activities of the employees assigned to its worksite.
  • The worksite employer remains responsible for ensuring a safe work environment.
  • The worksite employer remains responsible for keeping track of actual hours worked and reporting those hours to the PEO for processing.
  • The worksite employer is responsible for making sure payroll funds are paid to the PEO.

By partnering with a PEO you:

IMPROVE compliance with state and federal regulations.

FOCUS on business goals not administrative tasks.

PROTECT your business from workplace liabilities and loss.

GAIN time energy and incentives to grow business.

REDUCE employee related costs and increase profits.

Published On: November 15th, 2014 / Categories: PEO /