For those not familiar with the PEO Industry,
NAPEO is the National Association of Professional Employer Organizations and maintains industry statistics and conventions on best practices.
â€œThe estimated 2.7 to 3.4 million employees who benefit from PEO services is a number larger than the size of the entire agriculture/forestry industry in the United States (and close to the size of the federal government, the education sector, or the information sector), based on data from the Bureau of Labor Statistics (BLS).
A PEO provides comprehensive HR solutions for small to mid-sized organizations and non-profits. Payroll, workersâ€™ compensation, benefits, HR, tax administration, and regulatory compliance assistance is the type of work with which PEOs stay busy. Engaging with a PEO establishes a co-employment relationship sharing in certain responsibilities and liabilities. Small businesses mitigate risks with PEOs and gain access to benefits otherwise unobtainable on their own. It becomes the PEOâ€™s duty to process payroll, reduce employer liability, reduce costs of workersâ€™ compensation insurance, manage unemployment claims, facilitate group medical insurance, and more business process outsourcing.