Struggling with all the HR paperwork? A Professional Employer Organization (PEO) is a firm that handles your HR tasks, giving you more time to run your small business.

The Magic Word is Co‑Employment

The key is a relationship called co-employment. Don’t worry, it’s simple: you run the business and manage your employees’ day-to-day work, while the PEO handles the official HR administration and filings. Think of it like a team for your shared chores: you’re in charge, but they handle the complex logistics.

Take Nina’s 10-person café. By partnering with a PEO, she gets expert help with HR compliance and payroll, freeing her up to focus on customers.

Getting Started is Easy

After you sign an agreement, the PEO adds your employees to its system for payroll and benefits. For your next payday, you just report your team’s hours and salaries to the PEO. They take it from there!

You’re Still the Boss

So, who does what? It’s a clear partnership.

  • You still: Manage daily tasks, set pay rates, hire, and direct your team.
  • The PEO handles: Filing payroll taxes, managing benefits enrollment, and securing a workers’ comp policy.

What About the Money?

You pay the PEO a per-employee monthly fee for its services. For each payroll, you send one bundled payment covering wages, taxes, and benefits costs, and the PEO handles distributing everything correctly.

Ready for the Next Step?

Curious if a PEO could work for your business? Read our simple guide: What a PEO Does.