What are PEO Services?
A PEO (Professional Employment Organisation) is a third-party service commonly used in the USA, where employment requirements can vary significantly between states and employee health, and medical, benefits must be provided.
Smaller companies might deem these different rules and offering benefits as too complicated to tackle on their own; hence, they will contract the services of a PEO.
An IPEO (International Professional Employment Organisation) works similarly but as a global employment solution. It supports organisations in hiring employees efficiently, compliantly, and seamlessly anywhere in the world, without them having to set up a foreign legal entity.
Unlike an Employer of Record (EoR), a PEO company co-employs the worker alongside the client, i.e., it takes on the responsibility for administration of the payroll, benefits, and HR support — leaving you to direct the daily tasks of the employees and focus on the key priorities that impact the business.
Benefits of a PEO
The PEO model offers several benefits and advantages, among them:
* Please note PEO service is not available in the Latin America region.