PEO – Risks and Rewards

Tighe, Kress & Orr.

Posted 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.

All content provided on the TKO Insights website is for informational purposes only. Any tax advice contained in this communication (including attachments or links) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (i) avoiding tax penalties or (ii) promoting, marketing or recommending to another party the matter or transaction addressed herein. We recommend you consult your tax, audit, accounting or business valuation advisor related to any content on this site.