PEOs provide the HR infrastructure small businesses need. They also offer better employee benefit packages to small- to mid-sized businesses because they can buy in bulk. They group your company employees with employees of their other clients and get the discounts and perks that only large companies usually have access to
How does a PEO work?
Here are a few details on how the PEO/client relationship looks, and how the co-employment agreement affects your employees:
Your employees continue to work at your company locations(s).
The PEO pays your employees' wages and taxes out of its own accounts
The PEO collects, deposits, and reports your employees' employment taxes with the proper state and federal authorities.
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