Written by Jacob Hodara
Tuesday, 07 April 2009 07:00
No. The client retains ownership of the company and control over its operations. As co-employers, the PEO and client will contractually share or allocate employer responsibilities and liabilities. The PEO will generally only assume responsibilities and liabilities associated with a "general" employer for purposes of administration, payroll, taxes and benefits. The client usually retains those rights and responsibilities associated with "special" employers related to actual business operations. As such, the client will continue to have responsibility for worksite safety and compliance. The PEO will be responsible for payroll and employment taxes, will maintain employee records, and reserves a right to hire and fire. Because the PEO may also be responsible for workers' compensation, the PEO will also focus on improving safety and compliance. In general terms, the PEO will focus on employment-related issues and the client will be responsible for the actual business operations.
