What is a Professional Employer Organization (PEO)?
A PEO is one of the most important management tools available to today’s small-to-medium-sized business (SMB) owner. In a PEO arrangement, you transfer your employees to Trend’s payroll, and we become the Employer of Record. We take care of the administrative headaches normally associated with running an HR department, including payroll, taxes, workers compenstation, benefits, government reporting, and more. You retain full control over the management and activities of your employees. Why should I consider using a PEO? TRENDTM helps eliminate the burden of staffing and running your own HR and payroll departments, allowing you to focus your energy where it counts most—on building your business. In addition, with healthcare, workers compensation, and other human resources costs skyrocketing, business owners are looking for ways to reduce operating overhead and improve productivity. As a PEO, TRENDTM can help accomplish that goal by using economies of scale to negotiate bulk rates on bene
A Professional Employer Organization (PEO) is a company that provides a cost-effective outsourcing solution for many of a company’s administrative operations, including payroll, benefits, human resources and safety and risk management. A PEO delivers these services by assuming an employer relationship with the employees at a business’s worksite and by contractually assuming certain employer rights, responsibilities and risks. Historically, the PEO concept was focused on blue-collar industries. But as employers have continued to experience problems and concerns surrounding human resources and employee benefits, PEO’s have become an increasingly attractive option in traditional white-collar industries as well.
A PEO is a co-partner and works like an off-site HR department to provide cost-effective outsourcing of human resource services. The PEO legally co-employs its client’s personnel, creating a three-way relationship between the PEO, the client company, and its employees. In doing so, the PEO provides small and mid-size companies access to a strategically-leveraged, fully scalable, integrated HR department that delivers a vast array of quality services and benefits while mitigating employer-related liabilities.
NCCI generally defines a Professional Employer Organization (PEO) as an entity or group of entities that provides the services of its workers to its client(s) through a PEO arrangement for a fee pursuant to an agreement, written or otherwise. Generally, if an entity provides the services of its workers, by contract and for a fee, to a client and any such services are not provided on a temporary basis, that entity will be considered a PEO. Note: Many state laws and/or NCCI state specific rules define PEO, labor contractor, employee leasing company, lessor, or other similarly administered arrangement slightly different than typically defined by NCCI above. Where state law (including but not limited to statutes, regulations, and administrative laws or rules) conflicts with NCCI’s definition (as stated above or state-specific), state law applies.
