A Professional Employer Organization is a company that provides outsourced services to businesses. For example, a business can hire a PEO employee for management tasks such as benefits administration, recruiting and payroll. For tax purposes, the PEO is the employee's official employer.
Best Professional Employer Organization Firms:
Professional Employer Organization FAQs:
What is the price range for Professional Employer Organization services?
Everyone has different prices, but, generally speaking, PEO services range from $750 to $1,500 per employee per year.
What is a certified professional employer organization?
"Certified" means that the PEO is certified by the government and any other applicable regulating bodies to provide outsourced employer services.
Do professional employer organizations provider HR services?
Absolutely. Most PEOs have a professional employer organization HR division that works specifically with businesses in need of HR services.
Professional Employer Organization Pros and Cons:
Employee benefits at lower costs.
Less control over employees.
Greater business efficiency.
The PEO will constantly assess the cost-benefit of working with you.
No more administration-heavy HR responsibilities.
Your business has new costs when working with a PEO.
What is professional employer organization insurance?
PEO insurance is liability insurance for your business that is purchased and managed by your PEO (professional employer organization). The advantage of PEO insurance is that you can access it at a discounted rate.
Are there any international professional employer organizations?
PEO services are the most common in the United States. However, there are a few firms that offer these services in multiple countries, including Velocity Global and Procorre.
Can a PEO perform all of our payroll responsibilities?
Yes. With professional employer organization payroll services, you don't have to worry about any of the payroll administration in your business. From direct deposit to expense reimbursement and year-end statements, a PEO can take care of your entire payroll system.
When we hire a PEO organization, are we getting new employees?
Technically, no. Essentially, what happens is that you are outsourcing work to PEO employees. The terms of their PEO employment stipulate that they work for the PEO firm, not the company whose work they are assigned to complete.