Professional Employer Organization is a business entity that provides Human Resources Services, Employee Benefits, Payroll Administration and Risk Management Services to its client companies on an outsourced basis through the use of a co-employment relationship.

In a co-employment relationship, the PEO acts as the administrative employer and the client acts as the worksite employer. The employer maintains control of the business and is in charge of all business decision-making including employee supervision and staffing decisions. The PEO handles the time-consuming administrative tasks associated with the employment relationship.

Companies in virtually every industry use the services provided by a PEO. Any company interested in trying to improve its performance in an increasingly competitive marketplace should consider this type of partnership.