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How Does the PEO arrangement work?
A co- employment relationship is established in which both the PEO and client company have an employment relationship with the workers. The PEO and client company share responsibilities and liability for the “business of employment” such as risk management, human resource compliance, payroll and tax reporting, workers compensation and risk management.
The client company manages tasks such as productions, product development, marketing, sales and service while the PEO manages the employee files, payroll and other administration.
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