PEO: The 411

Employee leasing has begun to make a growing impact in American businesses. This is especially true on the small business front.  PEO’s offer both advantages and disadvantages.

It is important as a business professional to understand the pros and cons of a PEO. Here is an introduction and several disadvantages of using a PEO.

The first question is what does PEO stand for?
A PEO is Professional Employee Organization.

How does a PEO work?
Under employee leasing arrangements, a company can transfer some or its entire employee base to the payroll of the PEO. The PEO leases the clients back to the company and administers the payroll.

What else does a PEO administer?
The PEO provide administrator’s benefits, hold private records and performs the activities that are usually handled in house by the Human Resource department.

4 Responses to “PEO: The 411”

  1. Kendall Deeb says:

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