HRO or PEO?
NO CO-EMPLOYMENT AGREEMENT
It can be very confusing to determine the difference between an HRO and PEO as they are similar in many ways, however, they are two main differences:
- With an HRO, there is no co-employment agreement as you would have with a PEO. In other words with an HRO your business does NOT lose your FEIN identity and assume the PEO's.
- Your business would still be the employer of record for your employees; whereas, if you enter into a co-employment agreement, the PEO becomes the employer of record for purposes of assuming and managing employer related responsibilities such as payroll and tax compliance, human resources, workers' compensation and employee benefits.
