A Professional Employer Organization (PEO) is defined as an organization that provides a united and cost effective approach to the management and administration of the human resources and employer risk of its clients, by contractually assuming substantial employer rights, responsibilities and risk.

A PEO can also be referred to as Employee Leasing whereas the Client and the PEO share a co-employment relationship with the employee’s of the Client. The concept allows for payroll to be processed under the PEO’s own Federal Employer Identification Number (FEIN) and assume the responsibilities as the employer of record for the IRS, Workers’ Comp coverage and benefits administration. The co-employment relationship continues to provide the Client with the sovereignty to perform all on-site functions such as, hiring/firing, company rules and regulations, supervision and management and other business functions necessary for operations of their company.