What is a PEO?

A Professional Employer Organization (PEO) is a company that contractually assumes and manages critical Human Resource and personnel responsibilities and employer risks for its clients while establishing and maintaining a
co-employment relationship with the clients' employees.

What is co-employment?

A co-employment arrangement is established in which both the PEO and the client company have an employment relationship with the worker. The PEO and the client company contractually allocate some and share other traditional employer responsibilities and liabilities. The PEO assumes responsibility and liability for the "business of employment" such as risk management, personnel management, Human Resource compliance, and payroll and employee tax compliance. The client company provides direction and control of the employees and manages tasks like product development and production, marketing, sales and service.

Why would a business use a PEO?

Business owners want their time and resources focused on the "business of the business" and not on the "business of employment." Leveraging the expertise and economies-of-scale of a PEO provides small and large businesses with employee benefits, Human Resource expertise and software infrastructure that would require significant resources to obtain, administer, and maintain. Other reasons to use a PEO would be for risk avoidance and improved employee retention.

Why would a worker want to be employed by a PEO?

Workers seek financial security, quality health insurance, a safe working environment, and opportunities for retirement savings. PEOs provide Fortune 500 quality employee benefits including health insurance, 401(k) savings plans, and aggressive workplace risk management. It is very common, when workers that have been employed by Alcott change employers that they recommend Alcott to their new employer because they are used to having superior benefits and HR support.

To learn more about PEO services, visit the National Association of Professional Employer Organizations (NAPEO) website @ www.napeo.org