When it comes to offering services to a company’s employees, a PEO serves as a co-employer. It enables the outsourcing of crucial HR processes like payroll, benefits, and training while guaranteeing adherence to national and state labor rules. Subsequently, companies have more capacities and are able to concentrate on enhancing their goods or services. While the client company still maintains control over day-to-day business operations, the PEO essentially becomes the employer of record for the employees. In addition, it is simpler to expand the company.
PEOs are widely available and offer different services. While some PEOs just handle the most fundamental HR duties, others go above and beyond by offering additional services. The employer of record can take on tasks ranging from talent acquisition to onboarding to data analystics. In the end, the extent will be discussed individually with the client.