What is a PEO?
Understand what a PEO does, which responsibilities a PEO like SPLI can handle, and what you continue to manage as a business owner.
A professional employer organization (PEO) is a company that helps businesses manage payroll, workers’ compensation coverage, employee benefits, and related administrative tasks. A PEO provides support for these functions while you continue to run your business and direct your employees’ work.
The business and PEO sign a service agreement that defines which responsibilities each will handle. This arrangement is commonly called co-employment, and the division of responsibilities depends on the agreement and applicable requirements. Learn more about PEO relationships from NAPEO.
What Does PEO Services Include?
The services included in a PEO relationship depend on the provider and your agreement.
SouthEast Personnel's PEO services include:
- Payroll administration: Payroll processing, tax reporting, deductions, and related administrative support.
- Workers’ compensation coverage: Access to coverage and support with claims management.
- Employee benefits: Benefits management and access to available benefit options.
- Safety and risk resources: Materials and support to help businesses address workplace risks and compliance responsibilities.
A SPLI account executive can walk through your service agreement and explain the support included in your program.
What Does My Business Remain Responsible For?
You retain ownership of your business and manage daily operations, including assigning work, supervising employees, and serving customers. Your business also remains responsible for workplace safety and other employer obligations.
Review your service agreement with a SPLI account executive so your team understands its role in providing payroll information, reporting workforce changes, and coordinating with SPLI. The agreement and applicable requirements determine the specific responsibilities of each party.
How is a PEO Different from a Payroll Service?
A payroll service primarily handles employee pay and related tasks, such as deductions and tax filings. A PEO combines payroll with broader employment-related services under an agreement that defines the responsibilities of the business and the PEO.
For example, SPLI brings payroll administration and workers’ compensation coverage together within its PEO program, with additional support for benefits management, safety, and compliance. Review the services included in your proposal to understand what support you would receive.
Still Have Questions?
Contact us now or call (866) 726-0999 to discuss what SPLI would handle and what your business would continue to manage.