PeO-Experts.com
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Description
What is Employee Leasing?
PEOs (Professional employer organizations) or Employee Leasing companies 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 PEO 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 PEO or Employee Leasing agreement and is assigned shared employees by the PEO or Employee Leasing company.
How does a PEO or Employee Leasing arrangement work?
Once a client employer contracts with a PEO or Employee Leasing company, the PEO or Employee Leasing Company will then co-employ the client's work-site employees. Among the PEO or Employee Leasing company, work-site employee, and client employer, there exists a co-employment relationship in which both the PEO or Employee Leasing company and client employer have an employment relationship with the worker. The PEO or Employee Leasing company and client employer share the responsibilities and liabilities of employees. The PEO or Employee Leasing company 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 PEO or Employee Leasing company and the client will share certain responsibilities for employment law compliance. As a co-employer, the PEO or Employee Leasing company will often provide complete human resources and benefit packages for the work-site employees.
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