What services are typically included in a PEO service agreement?

PEO service agreements typically encompass essential HR functions, including payroll processing, tax filings, employee benefits management, and compliance with employment laws and regulations. The agreement may also cover safety training, assistance with hiring and onboarding, and access to HR specialists. While services can vary, the primary purpose is to provide comprehensive support for your daily HR needs.

How does a PEO service agreement help small businesses?

A PEO service agreement allows small businesses to delegate time-consuming HR tasks to experts, freeing up time to focus on running the business. A Professional Employer Organization (PEO) manages policy updates, tracks employee time off, and communicates essential information to employees. Clear role definitions ensure everyone knows where to turn for HR support.

How is a PEO service agreement different from outsourcing HR functions?

A PEO agreement establishes a co-employer partnership, meaning the PEO assumes shared legal responsibilities and risks, like multi-state compliance. In contrast, traditional HR outsourcing usually involves hiring a provider for specific tasks, like payroll or recruiting, while your business retains full legal responsibility.