How does a PEO arrangement work?

In the relationship among a PEO, a worksite employee, and a client company, there exists a co-employment relationship in which both the PEO and client company have an employment relationship with the worker. The PEO and client company contractually allocate and share traditional employer responsibilities and liabilities.

The PEO assumes responsibility and liability for the “business of employment” including risk management, human resources, labor law compliance, payroll, and employee taxes. The client company manages product development and production, marketing, sales, and service. The PEO assumes and establishes an employee relationship with the worksite employee and provides a complete human resource and employee benefit package.

Simply put, you remain as the Job-Site Employer retaining all supervisory, hiring, terminating, and directing of employees. Galactic becomes the “employer of record” or Administrative Employer for tax and insurance purposes by assuming responsibility and liability for these functions.