What is Co-Employment?
As a local small business accustomed to choosing your own benefits, you may cringe a little when you hear the term co-employment. But it’s really not as intrusive as it may sound.
Through the co-employment relationship, a PEO takes on many of your employee-related employer responsibilities, while you continue to manage and run your business. Here’s what that actually means for your business:
The Employers Role
Your company remains the primary employer. You’ll still maintain control over managing your employees’ daily to-dos and core job functions as well as maintaining your organizational structure.
The PEO’s role
As the co-employer, the PEO takes on certain, specific employer obligations, as set forth in your service agreement. This allows the PEO to handle functions such as payroll, benefits, tax remittance and related government filings. Because it acts as an employer for those purposes, the PEO can assume a greater amount of responsibility than, for example, a payroll company.