“PEO” stands for Professional Employer Organization. PEOs work with small- to medium-sized companies to provide comprehensive outsourcing to help manage the day-to-day tasks of running a business. The PEO and the employer enter into a Client Service Agreement or “CSA” which outlines the relationship between the business, the employees, and the PEO. The PEO then provides access to benefits, administers payroll and HR, and assists with regulatory compliance but leaves the direction and control of the company in the employer client’s hands.
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