Glossary

Small Business Glossary and Definitions

What is a Professional Employer Organization (PEO)

Professional Employer Organization is an organization that a company can contract with in order to outsource human resource-related tasks such as payroll, benefits, recruiting and training. When a company brings in a professional employer organization, in many cases the organization takes over all aspects of hiring, compensating, and reviewing the staff. When this happens, the PEO becomes the legal employer of all staff and the company simply pays the PEO.