Co-Employment

Co-employment is a business arrangement where two companies share certain employee responsibilities. Typically, a client company hires an employee, but a staffing or Professional Employer Organization (PEO) also has a role in managing payroll, taxes, and benefits. The client directs the employee's work, while the PEO handles administrative tasks. This setup helps businesses manage workforce needs without taking on full employment liabilities, allowing for compliance, risk management, and efficiency. Essentially, it's like sharing the employment relationship between two organizations, each with specific roles, to better manage human resources.