Do the business owners lose control of their businesses?
No. The client retains ownership of the company and control over its operations. As co-employers, the PEO and client will contractually share or allocate employer responsibilities and liabilities. The PEO will generally only assume responsibilities and liabilities associated with a “general” employer for purposes of administration, payroll, taxes and benefits. The client will continue to have responsibility for work site safety and compliance. The PEO will be responsible for payroll and employment taxes, will maintain employee records and reserves a right to hire and fire. Because the PEO also may be responsible for workers’ compensation, many PEO’s also focus on and improve safety and compliance. In general terms, the PEO will focus on employment-related issues and the client will be responsible for the actual business operations. What is the difference between employee leasing and a PEO arrangement?
No. The client retains ownership of their company and control over its operations. As co-employers, AES and the client will contractually share employer responsibilities and liabilities. AES typically only assumes responsibilities and liabilities associated with general employment for purposes of human resources, workers’ compensation, benefits and payroll administration and compliance. The client has the responsibility of direction and control over the worksite employees. AES maintains employee records and promotes improved safety programs. AES focuses on employment-related issues and the client is responsible for the actual business operations.
