From what is PEO to how a PEO work – the questions need answers from veritable sources and precise enough to understand. Notably, the Internet has filled a distinguished set of answers pulled from different understandings about the PEO. In the following, we offer lucid, meaningful results for those queries.

Checked out what is PEO? Well, the PEO, as it stands for Professional Employer Organization, is the term widely used for HR services or HR management for managing payroll activities of a business or a company. PEO companies have specialized experts across tax, HR, legal, client service, accounting and various disciplines.

Coming to the prominent point of the topic – how does a PEO Consultant work? An explainer like this shall help. Let’s suppose you have a company named XYZ. Now, XYZ requires a certain set of human resources to perform the jobs. A PEO’s task here is to hire the candidates on its own payroll. So, XYZ will have the KRAs or Key-result Areas defined for these employees to do the jobs and the PEO takes care of the payroll and compliance. From payroll, employee benefits to HR and legal formalities, a PEO consultant handles and streamlines various activities for the XYZ Company.

Often people would ask then, why a PEO is necessary. Isn’t it ok if a company hires HR professionals? In modern-day businesses, small and medium businesses have to channel their energies on building or incubating the business. Hiring of HR professionals incur higher costs and burdens with additional responsibilities. On the other hand, PEOs help with admin and HR management effectively at low expense.