Frequently Asked Questions

What is a PEO?

A Professional Employer Organization (PEO) provides human resource services for their small business clients, paying wages and taxes, and assists with compliance with a myriad of state and federal rules and regulations. In addition, many PEOs also provide workers with access to 401(k) plans, health, dental and life insurance, and other benefits not typically provided by small businesses. A PEO enables clients to cost-effectively outsource the management of human resources, employee benefits, payroll, and workers’ compensation. PEO clients can then focus on their core competencies to maintain and grow their bottom line.

Do business owners lose control of their business when they work with a PEO?

No. In general terms, Allied PEO will focus on employment-related issues, and the client will be responsible for the actual business operations.

Allied PEO and the client will contractually share or allocate employer responsibilities and liabilities per client service agreement (CSA). Allied PEO will generally only assume responsibility as a general employer for purposes of administration of benefits and remittance of payroll and employment taxes.

  • The client will continue to have responsibility for worksite safety and compliance.
  • Allied PEO will be responsible for remittance of payroll and employment taxes, may maintain employee records and retain a limited or general right to hire and fire, as delineated in the CSA.

Who should use a PEO?

Any business can find value in a relationship with a PEO. We offer our services to clients from five employees to more than 1,000. Increasingly, larger businesses also are finding value in a PEO arrangement because Allied Employer Group’s PEO offers robust web-based HR technology and expertise in HR management.

How does Allied PEO help clients control costs and grow their bottom line?

A PEO’s economy of scale enables each client company to lower employment cost and increase their bottom line. With Allied PEO, the client doesn’t have to maintain an internal HR infrastructure which can reduce hiring overhead. The professionals at Allied PEO can provide critical assistance with employee compliance, which helps to protect the client against liability.

Allied PEO provides time savings by handling routine and redundant tasks for its clients. This enables the business owner to focus on the company’s core business and grow the bottom line.