A Professional Employer Organization (PEO) is a company that takes on everyday HR chores for your small business, so you can focus on customers, not paperwork.

Think of it like a pit crew so you can drive; they tune the engine, you steer toward growth. Sound easier already?

The core jobs

  • Payroll processing and payroll tax filings
  • Health benefits shopping, and enrollment support
  • Workers’ comp policy setup, certificates, and audit help
  • HR compliance items: handbook, I-9s, required posters
  • New-hire onboarding/offboarding and state new-hire reporting
  • PTO/time-off tracking tools and basic timekeeping
  • Unemployment claims handling and simple safety guidance

Real‑world example

Omar’s 8-person design studio signed with a PEO. In one week, payroll and benefits were set up, onboarding checklists and I-9s were handled, and his workers’ comp certificate was ready for a client. Omar got back to design work instead of HR juggling.

What stays with you (not the PEO)

You still run the business. The PEO doesn’t set strategy, manage daily schedules, or make hiring, firing, or pay decisions without you. You keep control; they reduce the HR busywork and help keep compliance tidy.

Next step

PEOs typically charge a per-employee monthly fee, plus pass-through costs for benefits and insurance. If you want the split in plain English, read: You vs. the PEO: Who Does What