Professional Employer Organizations (PEO) have taken the place of employee leasing companies of the past. Employee Leasing companies have evolved into PEO’s and now offer a much wider range of services. PEO’s employee leasing services are particularly attractive to small and medium sized business because they can provide all the same benefits as Fortune 500 companies to any sized business because of their large buying power. A Professional Employer Organization becomes the employer of record and assumes responsibility and liability for the business of employment.
This liability includes payroll, employment taxes, worker’s compensation, risk management, benefits administration and labor law compliance. The PEO Employee Leasing Company establishes an employment relationship with the worksite employee and becomes a complete human resource department for the employee. The client now off loads the administrative burden associated with human resources and can spend their time on managing the revenue generating aspects of their business.