What is a PEO and how does it affect my payroll?
A professional employer organization provides administrative services as they relate to employer responsibilities regarding its employees. The PEO, like the ASO model, does not affect the way your payroll is processed. PEO, in terms of payroll, simply means that your payroll taxes are remitted under the PEOs federal ID #. PEOs handle payroll taxes, workers comp ins., employee benefits, and all aspects of Human Resources.
