WHAT IS A PEO?
A Professional Employer Organization (PEO) acts as your offsite HR department and manages key employee-related functions such as:
Payroll
Employee Benefits
Tax & HR Compliance
Workers’ Compensation
By assuming these employer related liabilities, a Professional Employer Organization (PEO) becomes the "Employer of Record" for your employees, and you, the client, are the "Worksite Employer." This contractual arrangement is known as co-employment. In this arrangement Professional Employer Organization (PEO) clients lose no control over staff selection and day-to-day employee management.
As a co-employer with our client companies, Nextep assumes substantial employer responsibilities and risk through our Professional Employer Organization (PEO) client services agreement. Specifically Nextep is contractually responsible for:
Paying wages and employment taxes for the employee out of our own accounts
Reporting, collecting, and depositing employment taxes with state and federal authorities
Maintaining federal and state employer compliance
The chart below illustrates the co-employment arrangement as it relates to the Professional Employer Organization (PEO), the Client, and the Employee(s).
|
