General Questions

PEOs operate in all fifty of the United States. Twenty-three states provide some form of specific licensing, registration, or regulation for PEOs. Many states statutorily recognize PEOs as the employer or co-employer of worksite employees for purposes of workers’ compensation and state unemployment insurance taxes. The IRS has long accepted the right of a PEO to withhold and remit federal income and unemployment taxes for worksite employees. The IRS has promulgated specific guidance confirming the authority of PEOs to provide retirement benefits to workers.

April 7, 2009

Are PEOs recognized as employers?

PEOs operate in all fifty of the United States. Twenty-three states provide some form of specific licensing, registration, or regulation for PEOs. Many states statutorily recognize […]
April 7, 2009

What is a PEO?

Professional employer organizations (PEOs) enable clients to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation. PEO clients focus on their core […]
April 7, 2009

What is the difference between employee leasing and a PEO arrangement?

Although older statutes governing PEOs still use the leasing terminology, PEOs are in fact based upon the co-employment of an existing workforce. Today, the major distinction […]
April 7, 2009

What is the difference between temporary staffing services and a PEO arrangement?

Like a leasing situation, a temporary staffing service recruits employees and assigns them to clients to support or supplement the client’s workforce in special work situations, […]
April 7, 2009

Who uses a PEO?

The average client customer of a PEO is a business with 16 worksite employees, though larger businesses also find value in a PEO arrangement. These include […]