What Is


Discover the benefits of partnering with a Professional Employer Organization (PEO) and redefine the way your business handles HR management.


Professional Employer Organizations with Priority HR

A Professional Employer Organization (PEO) with Priority HR is a transformative solution for businesses seeking comprehensive HR services. As a full-service HR outsourcing provider, we specialize in co-employment arrangements, where we manage critical employee administration tasks such as payroll, benefits administration, and compliance. Tailored for your unique business needs, our PEO services not only streamline HR operations but also offer strategic support, enabling you to focus on your core business objectives. Discover the benefits of partnering with Priority HR for an efficient, compliant, and well-managed workforce.


of Partnering with a PEO

Employing a Professional Employer Organization (PEO) can help you expand your business while maintaining a peace of mind regarding protection. PEOs typically assist with:

Payroll and Tax Services

PEOs manage payroll and may handle local, state, and federal employment taxes. Many integrate payroll with time and attendance, minimizing duplication and errors.

Benefits Management

Co-employment often provides access to premium, affordable health insurance, dental care, retirement benefits, and other perks for employees. The PEO typically oversees employee enrollment for these benefits and processes claims on your behalf.


PEOs often have compliance experts to protect your business from fines and penalties. This may include areas such as payroll tax law, reporting requirements, unemployment insurance, workers’ compensation, hiring, and HR compliance.

Risk Management and Safety

Beyond workers’ compensation insurance, PEOs may provide safety audits and training programs to help minimize claims. They can also assist with Occupational Safety and Health Administration (OSHA) inspections.

HR Support

PEOs often have HR professionals who offer HR services and support, partnering strategically and administratively with your in-house HR team, if you have one.

Talent Acquisition and Management

Some PEOs provide comprehensive talent services, such as strategic hiring and recruiting, employee training and engagement, and performance management.


Empower Your Small Business

with a PEO

If you’re a small to mid-sized business owner, a Professional Employer Organization (PEO) can manage critical HR tasks for you. This allows you to focus on what matters most – developing and selling your unique products and services. Uncover the transformative impact a PEO can have on your business operations.

Enhance HR Management

with Advanced Data

Select PEOs offer advanced data analytics and benchmarking services that give you deep insights into your workforce. Armed with the right data and expert HR guidance, you can answer pivotal questions such as:
Are your employee salaries competitive in the current market?
Which skill sets are most suitable for your job vacancies?
Which departments require additional staff?
How does your employee turnover rate measure up against similar companies?
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With this valuable information, you can strategically adjust your business practices to boost employee retention and decrease turnover, leading to a more productive and harmonious workplace.


the Power of PEOs!

In a shared partnership known as co-employment, your business and the Professional Employer Organization (PEO) divide key employer responsibilities. While you focus on your core business operations like serving your customers and deciding who to hire or let go, the PEO takes care of payroll processing, payroll tax withholdings and payments, workers’ compensation coverage, and employee benefits administration. Additionally, they provide crucial human resources guidance, allowing you to concentrate on growing your business.


Making The Right Choice

Choosing the Right Professional Employer Organization

Selecting the perfect Professional Employer Organization (PEO) for your business is crucial. Here's how to make the right choice:
A well-chosen PEO can help your business thrive by taking care of HR administration, allowing you to focus on what you do best - running your business.
Whether you're a small or mid-sized business, or even a larger organization, a Professional Employer Organization (PEO) can be a perfect fit for you. PEOs cater to a wide range of industries including:

Boost Your Business

Partner With Priority HR

With a PEO partnership, your business can thrive no matter what industry you're in. Enhance your organization's performance with our expert co-employment solutions.


What It Doesn't Do

While a Professional Employer Organization (PEO) takes on the responsibility of HR administration, it does not take over your business. Here’s what a PEO does not do:

  • It does not make independent decisions about your business operations.
  • It does not assist with tasks related to marketing, sales, or distribution of your products.
  • It does not set pay rates, work hours, or schedules for your employees.

With a PEO, you retain full ownership and control over your business while gaining valuable HR support.

The Cost

Of PEO Services

Understanding the cost of partnering with a Professional Employer Organization (PEO) is crucial for your business planning. Generally, PEOs charge based on your payroll size or your number of employees. To get an accurate estimate, you'll need to share details about your workforce and the benefits you currently offer or wish to provide.
When reviewing your PEO cost estimates, remember:
Trustworthy PEOs provide a detailed cost breakdown, helping you see how your fees are divided among payroll, benefits, workers' compensation, etc.
When reviewing your PEO cost estimates, remember:
Investing more for comprehensive services, such as data insights or talent management, can enhance your business's return on investment.
When reviewing your PEO cost estimates, remember:
Time is money. Managing HR activities in-house can divert your attention from crucial revenue-generating business tasks.
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Partnering with a PEO not only simplifies your HR management but also gives you more time to focus on growing your business.

Understanding PEOs

An Unique Business Model

PEOs, or Professional Employer Organizations, are often known for their unique business model called co-employment. However, there has been some confusion surrounding PEOs. This is largely due to the inaccurate use of the term ’employee leasing’ to describe PEOs and their services. Even today, certain state legislations refer to PEOs as a form of leasing. Let’s clear the confusion: There is only one type of PEO, and that operates on the co-employment model.

PEOs' Unique Position

in Outsourcing

PEOs, or Professional Employer Organizations, stand out in the field of HR outsourcing due to their distinctive co-employment model. While they offer services similar to other outsourcing solutions, their uniqueness lies in their ability to share employer responsibilities with businesses. PEOs are often compared to, but should not be mistaken for:
Employee leasing companies
Staff leasing firms
Human resource outsourcing organizations (HROs)
Administrative services organizations (ASOs)
Managed payroll services
Discover the distinct advantages of partnering with a PEO for your HR needs.

enjoy the security

Choose a Certified Professional Employer

Organization (CPEO) for your business, and enjoy the security of working with a partner that meets the IRS’s stringent financial, legal, and reporting standards. Partnering with a CPEO can provide you with financial protections and tax advantages, such as the ability for the CPEO to pay federal taxes on your behalf, thereby shielding you from potential double taxation. It’s worth noting that only a small fraction of PEOs have achieved this IRS certification.

Benefits of Partnering

with a Certified PEO

ESAC Accredited PEOs:

Trusted and Verified

Besides achieving IRS certification, Professional Employer Organizations (PEOs) can also earn accreditation from the Employer Services Assurance Corporation (ESAC). ESAC-accredited PEOs have proven their financial stability, commitment to ethical business practices, and compliance with operational standards and regulatory requirements. Choose an ESAC-accredited PEO for a trusted and verified HR solution.

Frequently Asked Questions

PEO: Your Questions Answered

What is a PEO?

Answer: A Professional Employer Organization (PEO) is a service that helps small and medium-sized businesses manage HR responsibilities and risks through a co-employment model.

Who is the employer in a PEO?

Answer: In a PEO arrangement, while the PEO is the employer of record for tax purposes, you maintain full control and authority of your workforce.

What are the benefits of a PEO?

Answer: A PEO partnership means you're not alone in navigating HR, risk, and compliance challenges. This helps protect and grow your business.

How does a PEO make money?

Answer: PEOs earn revenue by charging a fee for their co-employment role. This cost typically depends on your total number of employees and the range of services you opt for.

How does a PEO differ from a staffing company?

Answer: Unlike staffing companies, which lease employees to other businesses, PEOs don’t supply a workforce. Instead, they assume certain responsibilities, making them co-employers with their partner organizations.

Will partnering with a PEO affect my company culture?

Answer: A PEO partnership doesn't necessarily affect your organization’s culture unless you want it to. If desired, some PEOs can suggest strategies to shape your culture and brand.

Does a PEO partnership make me a co-employer of other companies’ employees?

Answer: In a PEO arrangement, no contractual relationship is created between all the PEO’s clients. You are only responsible for your own employees.

How does a PEO differ from HR outsourcing?

Answer: Unlike typical HR outsourcing, a PEO arrangement allows you to share certain employer responsibilities. For instance, a PEO often provides access to robust health insurance and other employee perks, while an HR outsourcing firm may simply administer your existing benefits, HR, or payroll.
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