What is a PEO?

PEO stands for Professional Employer Organization.  It is a co-employment relationship between the client, employees and Merit.  The arrangement needed to facilitate outsourcing of HR is called co-employment, a sharing of employer responsibilities between Merit as a PEO and our small business clients.  As “worksite employers,” Merit’s clients continue to direct employees in their day-to-day duties and activities. 

PEO’s deliver and manage employee benefits administration, manage automated payroll processing and payroll tax preparation and filing, and are the “employer of record” on emplyees’ W-2’s.  PEOs also handle workers’ compensation, EEOC claims, state unemployment insurance and more.

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