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 What is Professional Employer Organization?PEOs (professional employer organizations) are sole proprietors, partnerships, associations, limited liability companies or corporations that enter into an agreement with one or more client employers for the purpose of co-employing all or part of the client employer's work force at the client employer's work site. A professional employment organization provides an integrated and cost-effective approach to the management and administration of the human resources and employer risk of its clients. What is a client employer?A client employer is a sole proprietor, partnership, association, limited liability company or corporation that enters into a Professional employment agreement and is assigned shared employees by the Professional Employer company.How does a Professional Employment arrangement work?Once a client employer contracts with a Professional Employer, the Professional Employment Organization will then co-employ the client's work-site employees. Among the PEO company, work-site employee, and client employer, there exists a co-employment relationship in which both the Professional Employer and client employer have an employment relationship with the worker. The Professional Employer Organization and client employer share the responsibilities and liabilities of employees. The Professional Employment Organization assumes responsibility and liability for the business of employment such as risk management, personnel management, human resource compliance, and payroll and employee tax compliance (workers' compensation). The client employer retains responsibility and manages product development and production, business operations, marketing, sales and service. The Professional Employment Organization and the client will share certain responsibilities for employment law compliance. As a co-employer, the Professional Employer will often provide complete human resources and benefit packages for the work-site employees.Who uses a Professional Employer Organization?The average client of a Professional Employer Organization is a smaller business, though larger businesses also find value in the arrangement. These small business customers include most industry types from accountants to small manufacturers and every profession in between including, doctors, retailers, mechanics and more.What is the difference between temporary staffing services and a PEO arrangement?A temporary staffing service recruits employees and assigns them to clients to support or supplement the client's work force in special work situations, such as employee absences, temporary skill shortages or seasonal workloads. These workers are traditionally only a small portion of the client's work force. A Professional Employment Organization assumes the responsibility of handling human resource and workers’ compensations functions for all or part of a client's already established work force on a permanent basis.So how do Professional Employer Organizations work? Professional Employment Organizations a proven management tool for any business. What does PML do for your company? How do the employees benefit from a Professional Employment arrangement?  |
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