Professional Employer Organization

A Professional Employer Organization, or PEO, is a licensed (US?) service bureau that calculates and processes a company's payroll checks. Employees are legally co-employed by the PEO, which usually takes responsibility for preparing accurate payroll checks, remitting payroll taxes to federal and state localities, preparing W-2's and 1099's, and furnishing detailed reports. PEOs may also manage garnishments, child support deductions, insurance deductions, W-2's and 1099's and delinquent taxes.

 

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