A Professional Employer Organization (PEO) offers services such as outsourcing of payroll services, workers' compensation, human resources and employee benefits administration. Co-employment is the concept around which the functioning of a PEO revolves.
A PEO manages the administrative tasks related to employment besides providing paperwork, establishing and maintaining employee files, processing payroll, filing payroll taxes, developing employee handbooks, workers compensation management, compliance assistance and human resource support. A PEO serves as an offsite HR department.