What is a Professional Employer Organization (PEO)?

If you are not familiar with the term "PEO" the first question that usually comes to mind is, "What is a PEO?"  A PEO Company, or Professional Employer Organization, is defined as a business entity that provides human resources outsourcing services to client companies through the use of a co-employment relationship.  The M&M Sales PEO relationship involves a contractual allocation and sharing of employer responsibilities between M&M Sales, Inc. and the client.  This shared employment relationship is often referred to as "co-employment".

                                                                     What is Co-Employment?

Co-employment is a relationship wherein the PEO company acts as the Administrative Employer and the client acts as the Worksite Employer.  This relationship is based on a true partnership.  Because of the co-employment relationship, a PEO company can help small and medium-sized business achieve economies of scale that they may not be able to achieve on their own.  Partnering with a comprehensive PEO company can help your business succeed.

In a Co-Employment Relationship, what are the roles of each employer

The following scenarios describe the roles of each employer in a PEO relationship.  
  • The PEO becomes responsible for the payment of wages in the co-employment relationship, as well as the management of workers' compensation claims and various other administrative functions related to the assigned employees.
  • The PEO handles the regulatory paperwork and compliance issues.
  • The PEO can give managers advice on proper termination procedures, proper disciplinary procedures and more.
  • The PEO provides the client and/or its worksite employees with workers' compensation insurance, unemployment insurance, Employment Practices Liability Insurance (EPLI), a 401(k) Plan, health insurance, a Section 125 Plan, voluntary insurance products and a broad range of other employee benefits programs.
  • The Client remains responsible for directing and controlling the daily activities of the employees assigned to its worksite.
  • The client remains responsible for ensuring a safe work environment.
  • The client remains responsible for keeping track of actual hours worked and reporting those ours to the PEO for processing.
  • The client is responsible for making sure payroll funds are paid to the PEO.

Can my business benefit from partnering with a PEO company?

When you partner with M&M Sales, your business can benefit in a number of ways.  You become better positioned to:
  • Focus on Your Core Business - By removing non-revenue producing tasks, you can spend much more time on what counts: managing and growing your business.
  • Lower Expenses and Increase Profits - By outsourcing your human resources, benefits and payroll administrative tasks to M&M Sales, you can take advantage of our economies of scale and broad expertise.
  • Become an Employer of Choice - By providing world-class Employee Benefits with guidance on legal compliance and improved risk management, safety support, training and claims processing services, you gain peace of mind.
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