What is a Professional Employer Organization (PEO)?
If you are not familiar with the term “PEO” the first question that usually comes to mind is, “What is a PEO?” A PEO company, or Professional Employer Organization, is defined as a business entity that provides human resources outsourcing services to client companies through the use of a co-employment relationship. The Oasis Outsourcing PEO relationship involves a contractual allocation and sharing of employer responsibilities between Oasis and the client. This shared employment relationship is often referred to as “co-employment.”
The Value of a
Learn how a PEO relationship can save your business time and money.
What is Employee Leasing?
Shift administrative burdens to a PEO – find out more here.
PEO Solutions and FAQs
Get your PEO-related questions answered here.
The Value of Co-Employment
Understand how a PEO partnership can work for your business.
How Does the PEO Relationship Work?
The PEO company acts as the Administrative employer and the client functions as the Worksite employer. This relationship is based on a true partnership. Because of the PEO structure, a PEO company can help small- and medium-sized businesses achieve economies of scale that they may not be able to achieve on their own. Partnering with a comprehensive PEO company can help your business succeed with improved efficiency and reduced liability. For more information, view our infographic, “What Value Can a PEO Provide.”
In a PEO Relationship, What are the Roles of Each Employer?
The following scenarios describe the roles of each employer in a PEO relationship:
- The PEO becomes responsible for the payment of wages in the co-employment relationship, as well as the management of workers’ compensation claims and various other administrative functions related to the assigned employees.
- The PEO assists with regulatory paperwork and compliance issues.
- The PEO can give managers advice on proper termination procedures, proper disciplinary procedures and more.
- The PEO provides the client and/or its worksite employees with workers’ compensation insurance, unemployment insurance, Employment Practices Liability Insurance (EPLI), a 401(k) Plan, health insurance, a Section 125 Plan, voluntary insurance products and a broad range of other employee benefits programs.
- The client remains responsible for directing and controlling the daily activities of the employees assigned to its worksite.
- The client remains responsible for ensuring a safe work environment.
- The client remains responsible for keeping track of actual hours worked and reporting those hours to the PEO for processing.
- The client is responsible for making sure payroll funds are paid to the PEO.
For more PEO information, visit The Value of a PEO page.