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PEO (Professional Employer Organization)

What is a PEO?

A PEO, or Professional Employer Organization, is a firm that provides comprehensive HR solutions for small and mid-size businesses. They manage everything from payroll and benefits to compliance and risk management, effectively becoming a co-employer of your employees.

Under a PEO arrangement, the PEO becomes the 'employer of record' for tax purposes, filing payroll taxes under its own tax identification numbers. Meanwhile, the client company continues to direct the employees' day-to-day activities. By outsourcing HR tasks to a PEO, businesses can focus on their core competencies and reduce administrative overhead.

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