What is Professional Employer Organization (PEO)?

Whether you're a beginner or an expert, you will find this Glossary useful.

Professional employer organization, also known as co-employment, refers to a firm that provides staffing service and is contracted to undertake the employers responsibilities and risk for his/her workforce.

Professional employer organization definition (PEO)

Professional employer organization, also known as co-employment, refers to a firm that provides staffing service and is contracted to undertake the employers responsibilities and risk for his/her workforce.


PEO process

Through this arrangement employers outsource employee management tasks such as employee benefits, payroll and workers' compensation, recruiting, risk/safety management, and training and development.

The PEO then becomes the employer of record for tax purposes and the client company continues to direct the employees' day-to-day activities.

PEOs charge a service fee is from 3 to 15% of total gross payroll.



TalentLyft ATS

Your Hiring Teammate

TalentLyft is intuitive and simple recruitment software specialized for SMBs.
Try it free for 14 days!
No credit card required, unsubscribe at any time.