Small, medium size businesses find the PEO (Professional Employer Organization) concept appealing for a number of reasons. The time commitment and financial burden associated with developing a true human resources infrastructure can be insurmountable to many business owners. With increased attention to employer liabilities in the administration of human resources, the cost of providing workers' compensation, unemployment insurance, health benefits, payroll administration, retirement plan options, various regulatory compliance issues, and the inability to reach critical mass to achieve the economies of scale. PEO's are quickly becoming an integral management tool for supporting strategic goals and objectives of small and medium sized businesses.

Businesses today need help managing the ever increasing burden of employment laws and regulations - both state and federal. Business owners need to get back into the business of generating revenues and doing what they do best. Nor getting dragged down in those complex employee related matters personnel management, health benefits, payroll, tax compliance, unemployment claims, managing workers' compensation and retirement plan administration.

The PEO delivers these services by establishing and maintaining an employer relationship with the workers assigned its clients and by contractually assuming substantial employer rights, responsibilities, and risks.