People
PEO
Also known as Professional Employer Organization
A PEO, or Professional Employer Organization, co-employs a client company's US workforce, administering payroll, benefits and HR compliance while the client retains day-to-day direction. Unlike an employer of record, a PEO generally requires the client to have its own legal entity.
In plain terms: A partner that runs US payroll and benefits alongside you, rather than instead of you.
Why it matters
The distinction from an EOR matters when choosing: a PEO gives a small US company access to better benefits pricing, while an EOR is what you need where you have no entity at all.
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