What Is Employee Leasing

In the relationship among a PEO, a worksite employee, and a client company, there exists a co-employment relationship in which both the PEO and the client company have an employment relationship with the worker.

A PEO and Client Company contractually allocate some and share other traditional employer responsibilities and liabilities.

A PEO assumes responsibility and liability for the "business of employment" including risk management, human resources, labor law compliance, payroll, and employment taxes. The client company manages product development and production, marketing, sales, and service.

A PEO assumes and establishes an employment relationship with the worksite employee and provides a complete human resource, complete benefit plans, administration, and other human resources solutions.