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
PEO

Learn how a PEO relationship can save your business time and money.

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What is Employee Leasing?

Shift administrative burdens to a PEO – find out more here.

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PEO Solutions and FAQs

Get your PEO-related questions answered here.

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The Value of Co-Employment

Understand how a PEO partnership can work for your business.
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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.

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