In a PEO arrangement, the client company and the PEO become co-employers. The client company maintains control over its business operations and day-to-day activities, while the PEO assumes certain employer responsibilities, such as payroll administration, tax filings, employee benefits management, and HR compliance. Employees are typically shared employees, with the client company maintaining supervision and control over their work.

Using a PEO offers several benefits, including access to expert HR knowledge and support, cost savings through economies of scale, enhanced compliance with employment laws, access to competitive employee benefits packages, streamlined administrative processes, improved risk management, and the ability to focus on core business operations and strategic initiatives.

Yes, one of the key services provided by PEOs is the management of employee benefits. They often have established relationships with insurance providers, allowing them to offer competitive rates on health insurance, retirement plans, and other employee benefit programs. PEOs handle the administration of these benefits, relieving the client company of the associated administrative burdens.