How does a PEO arrangement work?

A co-employment arrangement is established in which both the PEO and the client company have an employment relationship with the worker. The PEO and the client company contractually allocate some and share other traditional employer responsibilities and liabilities. The PEO assumes responsibility and liability for the "business of employment" such as risk management, personnel management, Human Resource compliance, and payroll and employee tax compliance. The client company provides direction and control of the employees and manages tasks like product development and production, marketing, sales and service.

How many are employed in co-employment PEO arrangements in the country?

It is estimated that 2-3 million workers are currently co-employed in a PEO arrangement. PEOs are operating in every state as the industry has grown between 20-30% per year. Today, there are approximately 750 PEO companies who are responsible for over $28 billion in employee wages and related Human Resource matters and employee benefits.