HR or PEO: what’s better for a small business?

Stassia St

What’s the difference between HR services & PEO services? What’s better for small business?


An HR provides HR services but most HR managers are not good in payroll processing, so you will have to hire someone else to perform this function. Talking about PEO, we mean “co-employment”. This means that PEO provides HR services and becomes responsible if something goes wrong. For example, your company pays the wrong employment taxes, so employer and employees can sue the PEO. You can read more about that at a PEO broker website to understand this issue better.