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What is a PEO? PEOs Defined White Paper

How Does a PEO Work?

A Professional Employer Organization serves as an outsourced human resources department providing comprehensive employment services such as payroll and benefits administration, HR management, and assistance with employer compliance. A PEO serves as your strategic HR partner that can help:

  • Attract and retain talent
  • Contain rising HR costs
  • Create efficiency
  • Minimize liability and exposure to risk
What is Co-Employment?

What is Co-Employment?

When working with a PEO, your company enters into a shared employment relationship. The PEO becomes the "Employer of Record” and is responsible for payroll and payroll tax compliance, benefits administration, workers' compensation, processing unemployment claims, and other HR-related administrative tasks. Your company remains the "Worksite Employer" and continues to retain day-to-day control and direction of the worksite employees.

TriNet’s Total HR Solutions
Your Company is Responsible TriNet is Responsible 
Conducts business operations  
Day-to-day employee activities  
Delivery of services or product development  
Processes payroll & payment of employment taxes  
Sponsors & administers benefits  
Provides HR management & consulting services  
Manages workers' compensation issues & processes unemployment claims  
Compliance & other employee-related liabilities Shared Responsibility
TriNet joins with your company to oversee
other selected areas of employer
compliance & liabilities

This shared relationship allows you to transfer many of the time-consuming administrative tasks to the PEO, and more importantly, allows you more time to focus on making core business decisions.

Due Diligence When Considering a PEO

Selecting the right PEO is a critical decision for your business. Here are some things to consider when deciding which service provider is right for you:

  • Check customer and professional references
  • Ask whether the service provider is a member of NAPEO and accredited by the Employee Services Assurance Corporation (ESAC)
  • Understand how the employee benefits are funded and insured
  • Verify that the employee risk pool matches the employer’s profile
  • Confirm that participating employees can receive first-day coverage for benefits
  • Ensure that the service provider meets all state regulatory requirements

As a leading PEO for more than two decades, TriNet works with more than 7,000 clients representing 175,000+ worksite employees in the United States and Canada. Our HR services allow small to medium-sized businesses to operate more efficiently and cost-effectively.

For more information, contact us.

PDF View PEO Fact Sheet as a PDF