Professional Employer Organizations (PEO’s) partner with companies to provide comprehensive HR outsourcing to help manage a company’s human resources, employee benefits, payroll, worker compensation and regulatory compliance.
A PEO works through a co-employment agreement, which means the PEO contractually shares certain employer responsibilities with the company.
In co-employment, the PEO becomes the employer of record for tax purposes, filing paperwork under its own tax identification number. The client company continues to direct the employees’ day-to-day activities.
I created this blog to help understand certain basic aspects of U.S. tax law. Of course, each situation is unique and nothing that is on this site will ever replace the expert advice of a tax professional.
Please do not hesitate to contact me should you have any question