What is a PEO?

A professional employer organization (PEO) offers companies a solution to help them reduce the burden of managing payroll, benefits, HR, and compliance.

How does a PEO work? 

When companies work with a PEO they enter a co-employment relationship. A co-employment relationship is a legal relationship, which means that the PEO can help manage employer-related HR functions like administering benefits, running payroll, and handling tax filing duties. The client company continues to have full control over hiring, firing, determining titles and compensation, and managing the day-to-day responsibilities of its employees.

What are the benefits of a PEO?

With a PEO, small businesses get access to large-group health insurance plans and perks typically reserved for larger companies while streamlining HR administration and compliance. PEOs benefit businesses by helping them handle specific HR administrative responsibilities. 

What is an international PEO? 

An international PEO operates very similarly to an employer of record (EOR). An international PEO acts as the legal employer so businesses can hire overseas without needing to set up a local entity in another country. Just like a regular PEO, an international PEO will also take on HR administration like offering access to benefits, managing payroll, handling taxes, and ensuring compliance with local labor laws.

An EOR is different from a PEO because a PEO serves as a co-employer while an EOR serves as the legal employer of an organization’s distributed workforce.