Do I loose control of my business?
Do business owners lose control of their businesses?
No. The client retains ownership of the company and control over its operations.
As co-employers, the PEO and client will contractually share or allocate employer responsibilities and liabilities. The PEO will generally only assume responsibilities and liabilities associated with a "general" employer for purposes of administration, payroll, taxes and benefits.
The client will continue to have responsibility for worksite safety and compliance.
The PEO will be responsible for payroll and employment taxes and will maintain employee records. Because the PEO also may be responsible for workers' compensation, many PEOs also focus on and improve safety and compliance.
In general terms, the PEO will focus on employment-related issues and the client will be responsible for the actual business operations
Business owners want to focus their time and energy on the "business of their business" and not on the "business of employment". As businesses grow, most owners do not have the necessary human resource training; payroll and accounting skills, the knowledge of regulatory compliance, or the backgrounds in risk management, insurance and employee benefit programs to meet the demands of being an employer.
PEOs give small and medium size business market access to many benefits and employment amenities they would not have otherwise. Hiring a PEO can have many benefits.