Responsibilities of a PEO & Their Client


When a business owner hires a PEO, they enter into a strategic alliance, basically a business partnership for the purpose of simplifying everyday administrative duties. The PEO doesn’t influence or get involved in anything else regarding the business. The owner is free to run his business anyway he wants or needs to in order to be successful. The sole responsibility of the PEO is to alleviate the extraneous duties associated with regulatory paperwork, including employment taxes, health benefits, workers’ compensation, medical forms, insurance claims, unemployment, etc.

Responsibilities of PEO & Their Clients - RenaissanceHR

"The price of greatness is responsibility." — Winston Churchill

Professional Employer Organization:

  • Handles the regulatory paperwork and compliance issues
  • Provides workers' compensation coverage
  • Administers federal and state taxes allocations
  • Processes payroll and insurance coverage and claims

Business Owner:

  • Directs and controls daily activities
  • Keeps track of hours worked for payroll processing
  • Responsible for maintaining a safe environment
  • Makes sure funds are paid to the PEO