Employment · HR glossary

Professional Employer Organisation

A professional employer organisation, or PEO, provides employer-related services under a shared-responsibility arrangement, commonly described as co-employment in the United States. Services may include payroll, benefits and HR administration.

By SmallHRTools · How we write definitions

Example

A small employer uses a PEO for specified payroll and benefit services while continuing to direct employees' day-to-day work.

What to keep in mind

PEO structures and regulation vary by location. Distinguish a PEO from an employer of record and confirm which entity carries each legal and practical responsibility under the actual arrangement.

Professional Employer Organisation

Example

What to keep in mind

Further reading