When a client establishes a relationship with a PEO, the PEO co-employs the client’s worksite employees. The PEO handles most of the issues regarding risk management, human resource outsourcing, HR management, payroll and employee tax compliance and employee benefits. The client company is responsible for its core business functions, like product development and production, business operations, marketing, sales and service. The PEO and the client company share some responsibilities for complying with employment statutes.
