PEO (Professional Employer Organization) services allow businesses to outsource various HR, payroll, and benefits administration tasks. When a company partners with a PEO, the PEO becomes a co-employer of the company’s staff for legal and tax purposes, enabling the PEO to handle HR functions like payroll processing, health insurance, workers’ compensation, and compliance. This arrangement can provide small and mid-sized businesses access to benefits and HR expertise typically available to larger companies, helping to reduce administrative burden and ensure compliance with employment laws, while potentially lowering benefit costs due to the PEO’s larger pool of employees.