Resources for PEO Companies

Professional employer organizations or PEO companies arethose which provide a series of integrated services for client companies. Theservices that might be included are generally human resources, payroll,employee benefits and other compensations. They also include handling insuranceand workers' compensation matters. This leaves the client business free tofocus on operations and sales.

PEO companies traditionally take a percentage of thetotal payroll of the client company as fee for providing these services,usually between 3 and 15 percent. Because they can handle more than one companyand because they can claim the employees of each client as their own, PEOs cannegotiate for better deals on many of the services they provide because oftheir large volume of employees. This benefits both the PEO and the clientcompany.

Professional employer organizations are an economic andconvenient way for small businesses to manage their integrated personnelissues. By letting another company manage this aspect of their business, theyare free to focus on product development, production, sales and other areas ofthe business. The client business owner does not have to worry about compliancewith regulations in regards to employee matters because the PEO takes care ofeverything. It is an advantageous arrangement for both companies.