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What is a PEO?

What is a PEO, and how does it work?

Simply put, a PEO (professional employer organization), such as Gevity, is a company that provides certain HR-related services and functions for clients under what is called a co-employment arrangement. The core services typically provided by a PEO are payroll processing, access to health and welfare benefits , risk management, workers' compensation coverage and HR services.

What is co-employment and what benefits does it provide?

Under Gevity's co-employment arrangement, we assume certain HR/employment-related responsibilities, as provided for by the professional services agreement (PSA) and as may be required under certain state laws. The co-employment relationship allows the PEO to become an employer of record for matters such as employment tax and insurance-related paperwork, thus relieving you of this time-consuming administrative burden.

On a day-to-day basis, there is no impact to your business – other than having more time to devote to running your business, free of the HR hassles which the PEO will now take care of. You retain complete control over your business, including the hiring and firing of your employees. Gevity is there to provide you assistance in making these decisions.

Because a PEO can aggregate a number of small clients into a larger pool, the PEO is able to create economies of scale. The PEO then passes these on to its clients who would not otherwise be able to enjoy the benefits afforded by the PEO. One of the best examples is the advantage of having access to world-class benefits and retirement programs through industry-leading companies such as Aetna, Kaiser Permanente, BCBS of Florida and Transamerica. With these benefits in hand, you can now compete with bigger employers in attracting the best and the brightest in an increasingly tight pool of talented workers.

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To help determine if our PEO services are right for your business, contact us today for a free consultation.