What is a PEO
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What Is A PEO?

A PEO (Professional Employer Organization, also known as an employee leasing company) is an outsourcing company to whom a business can transfer its payroll and human resource responsibilities without giving up day-to-day operational control of its employees. Many people confuse the PEO concept with staffing agencies or temporary employment services. PEO's work only with the permanent employees of a company. The PEO becomes a co-employer and provides payroll services, workers' compensation, health benefits, and Human Resource services. These functions are necessary to comply with federal and state employment laws, but distract an employer from the activities that contribute to their bottom line. By using a PEO, you can focus on the revenue-producing activities that will grow your business while the PEO takes care of the non-revenue producing activities, such as: