20 Dec 2016
Do companies lose control of their business when they work with a PEO?
No, companies do not lose control of their business when they work with a PEO.
The PEO will focus on employment-related issues, and the client will be responsible for the actual business operations.
The business owner retains ownership of the company and control over its operations.
As co-employers, the PEO and client will execute a client service agreement (CSA). The PEO will generally only assume responsibilities associated with remittance of payroll, payroll taxes and providing workers comp insurance.
The client will continue to have responsibility for work-site safety and compliance.