PEO – Risks and Rewards

Tighe, Kress & Orr.

By: Tighe, Kress & Orr.

A professional employer organization (PEO) is a firm that provides a service under which an employer can outsource employee management tasks, such as employee benefits, payroll and workers’ compensation, recruiting, risk/safety management, and training and development.  Increases in health care costs and new regulations have increased the popularity of PEOs in the past few years.  A PEO operates as a “co-employer” and is the employer of record for a company’s employees which makes them responsible for filing and paying the related payroll and payroll taxes.  What happens if a PEO does not make the requisite filings and payments? Who is the responsible party?

If you are planning on using a PEO or are using a PEO, please contact us to discuss the risks and rewards.

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