A Professional Employer Organization (PEO), sometimes referred to as an "Employee Leasing" company, provides businesses of different types and sizes with a cost-effective means of outsourcing employer-related activities including payroll processing, risk management, employee benefits administration and Human Resource (HR) administration.

By pooling the buying power of many companies a PEO is able to offer their clients access to affordable Workers' Compensation insurance, cost effective employee benefits such as health insurance and a variety of administrative services.

"Like purchasing pools, PEOs aggregate a large number of clients and their employees into a single group, and as a result often command far more favorable health insurance rates than individual companies." "Cut Your Health Care Costs Now," Inc., April 2004.

In a PEO relationship, the PEO becomes an employment partner with the client, forming a co-employment relationship with the work site employees. A PEO and its client company contractually agree to share traditional employer responsibilities and liabilities. The client retains the ownership of the company and management of company operations including all of the daily activities of the employees.

Behind-the-scenes the PEO provides the client with competitive employee benefit plans, human resource administration and risk management services. The PEO also shares the responsibility and liability associated with the client's risk management, human resources, labor law, payroll, and employment taxes.

This co-employment relationship allows the client to focus on its core business functions including employee management, product development, production, sales & marketing and customer service. With everything a PEO can do for a growing business it's no wonder this is one of the fastest growing business trends in the United States.

To find a PEO that's the best fit with your company's requirements, contact EmployHR.com today or request a free no-obligation quote online.