PEO – Risks and Rewards
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.