The Unique Three-Way Relationship in a PEO
Many business owners often become overwhelmed by the number of human resource tasks they must keep up with daily. A great solution to alleviate some of the burdens is to outsource specific HR duties to a PEO (Professional Employer Organization).
When a client partners with a PEO like Professional Employer Resources, Inc. (PER), they begin a contractual allocation, making PER the “employer of record” for taxation and insurance purposes. The employees are then notified of the responsibilities and liabilities of each of the parties by the employer/client. With respect to its clients, the PEO takes on specific employer rights, responsibilities, and risk, while establishing and maintaining relationships with the employees of the client.
The client still has direction and control over their employees, determines compensation amounts, and conducts performance reviews, all while taking care of the customers and growing their business. The PEO assists with tasks including payroll, tax filings, health benefits, welfare, retirement benefits, employer compliance, workers compensation, and more.
A three-way relationship is created among the PEO, the client company, and the employees because the PEO legally co-employs its client’s personnel. By building this unique relationship, the PEO can provide small and medium-sized companies with an integrated HR department that delivers a wide variety of quality services and benefits while reducing employer-related liabilities.
If you’re looking for resources and tools to overcome some of the HR challenges in your business, we can help. PER provides a single solution to many administrative burdens placed on the employer. Since 1997, we have focused on enhancing the productivity of our client’s business and their employees, while sustaining a true partnership with our clients. For more information on the services we provide, or to begin working with us, please call 1-888-599-4991.