HR outsourcing and PEO

When going for an HR outsourcing or PEO solution, it helps to know the subtle differences between the available models. 

One of the key components of PEO (professional employer organizations) that is overlooked is the employer liability.  With a PEO, since a company has partnered with a PEO, the PEO is responsible as the “employer of record.”  Thus off-loading any workers comp or unemployment claims to the PEO.  With other models…since they are not the employer of record, any fines or state of federal issues are the problem of the client.