What is Co-Employment?

A distinguishing characteristic of a PEO is co-employment. A Professional Employer Organization is a company which contractually assumes and manages critical human resource and personnel responsibilities and employer risk for it's small to mid-size client businesses by establishing and maintaining an employer relationship with worksite employees. A PEO arrangement may involve all of a client's workplace employees in a long-term, non-project related employment relationship. The PEO assumes the employer responsibility for employment tax, benefit plans, and other human resource purposes. Through the use of a PEO relationship client companies make a long-term investment in their workers, because the PEO provides health insurance, retirement savings plans, and other critical employee benefits for their worksite employees.