(Professional Employer Organization)


What does PEO stand for ?

Most people find themselves asking, what is a PEO? What does PEO stand for? PEO is short for professional employer organizations. This is an organization or company that agrees to a joint-employment relationship with an employer by sharing or renting out their employees to the employer.

Thus, PEOs share and handle several employee-linked duties and liabilities. Through this, employers can outsource their human resource responsibilities, like employees’ compensation and payroll management, benefits, workers’ compensation, and tax.

As a small to medium enterprise (SME) owner, discovering PEOs or professional employer organizations provides major benefits to one’s business. Through PEOs, a business can enhance efficiency and high-quality management in their company, particularly in the case of their employees.

PEO companies are also referred to as co-employment services, business process outsourcing, and even human relations or HR outsourcing. Through PEOs, a client can hire the management of human resources, employee benefits, and worker compensation. Moreover, the PEO industry has also been a staunch supplier of services to all kinds of companies, whether a small business or not.

What is a PEO in HR ?

Well, they are responsible the administrative work such as employment, termination, and guarantee of compliance.

Service Inclusions: 
many professional services are covered by PEOs. Through a PEO, your business can get administrative services from a different company.

Here are a few of the services a business can get from a professional employer organization:

  • Human Resources
    Employment, training, and maintenance of employees, as well as making onboarding materials and assessing for background checks.
  • Payroll Assistance
    handling the payroll of your workers and management of a company’s business tax responsibilities.
  • Benefits Planning
    Providing insurance, retirement plans, medical and life insurance, and paid leaves for the employees working for your business.
  • Reassessing Work Compensation Claims
    PEOs can reassess all claims to ensure that all the required forms are accomplished and shall investigate the claims of a business’s workers as well.
  • Risk Management
    Handling government rules and policies and checking for ways to reduce business issues such as injuries and payroll conflicts.


WHY OUTSOURCY can help your business ?

OUTSOURCY offers several useful services such as payroll management, risk mitigation, and employee compensation, a business can focus on expanding their company as they attain high-quality workers. Through a co-employment model, a business also takes care of its staff while ensuring that the employees remain compliant with all the necessary regulations.

For smaller businesses, OUTSOURCY can serve as a major blessing to the work environment. Having a wider network of employees can increase their localized support and heighten cost-efficient productivity in favor of the development of their company.


How does OUTSOURCY Work?

Aside from getting to know the PEO benefits and services, it’s also important to know its process and inclusions to ensure you’re getting the worth of work a business needs.



The process of professional employer organizations and employee leasing involves the client making a contract with OUTSOURCY to lease their staff to fulfill work on projects. Then, OUTSOURCY will hereby be responsible for the management of risk, employees’ behavior, employee tax compliance, and other business-related matters of employment.
OUTSOURCY then continues to search for employees and lease them to the client at an agreed-upon fixed rate, either hourly or monthly. On the other hand, the client business or company will handle the management of the daily tasks of the leased employees. Although PEOs lease their staff to the client company, they are still the employee of record in government documents.

In short, the client company benefits from the services and work done by the employees but is saved from the work of human resources as there is an according to OUTSOURCY HR team.


Benefits of dealing with OUTSOURCY as a PEO:

  1. Recruiting and hiring
    since a business is working in a co-employment setting, the client benefits from fewer risks and liabilities to his business because OUTSOURCY would handle workers’ compensation and unemployment issues. Moreover, OUTSOURCY also handles the heavier task of background checks and interviews only to find the best employees for them.
  2. Easy Payroll & Tax Management
    OUTSOURCY also commonly provides payroll processing services, which can help relieve a business from the hassle of manual administrative processes that can lower productivity for human resources employees.
  3. Reduced Operational Cost
    once a business works with OUTSOURCY as a PEO, OUTSOURCY would lower the need to hire more employees to cater to menial tasks such as payroll processing and other HR-related functions. A business can also increase productivity in the core functions of the company in order to gain maximum profits and grow the business.
  4. Compliance Assistance (Laws & Regulations)
    Employment laws are complicated and constantly changing. Having to keep up with all of these laws can drain a company’s budget, but OUTSOURCY are able to help you with this. Since OUTSOURCY can provide HR professionals, a business can be guaranteed assistance with ensuring employee compliance.
  5. Increase Employee Development & Benefits
    The aim of a company’s relationship with OUTSOURCY as a PEO is to give your employees cost-effective, useful benefits without the stress of administrative workload. OUTSOURCY will offer several benefits to a company’s employees through its benefit plans that include medical coverage, and even life insurance and retirement plans.

If you need a Professional Employer Organization (PEO), work with us!

Our team takes pride in providing customer-centric solutions for our clients. We commit our time and effort to build our partners’ trust.
Contact our experts today, and we look forward to taking part in your company’s growth and success.