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A PEO is an acronym for Professional Employment Organization. A PEO is a company that offers co-employment services to companies just like yours.
A PEO handles the human resources administrative aspects of managing employees and frees up human resource professionals to handle the management and the day-to-day of the staff. The PEO specializes in payroll, workers compensation, health benefits and human resources.
They have significant purchasing power with insurance carriers because of the number of members they hold though their customers. That means their clients get the best prices on health insurance benefits.