Definitions for "Professional Employer Organization"
An organization that enters into a join-employment relationship with an employer, by leasing employees to the employer, allowing the PEO to share and manage many employer-related responsibilities and liabilities. Employers outsource their human resource functions, such employee benefits, compensation and payroll administration, workers' compensation and employment taxes.
An employee leasing firm that arranges with clients to lease their employees back to the client and handle all payroll and human resources functions for the client.
An employee leasing company that arranges with clients to hire their employees and "Lease" them back to the client. The PEO hanfles all payroll and human resources activities for the client's employees.