A Professional Employer Organization (PEO) is an organization that provides an integrated and cost effective approach to the management and administration of human resources by assuming substantial responsibilities and risk through the establishment and maintenance of an employer relationship with the workers assigned to its clients.

More specifically, a PEO establishes a contractual relationship with its clients whereby it:

• Reserves the right of direction and control of the employees and may share such responsibility with the client, consistent with the client’s responsibility for its product or service

• Pays wages and employment taxes of the employee, out of its own accounts

• Reports, collects, and deposits employment taxes with state and federal authorities

• Establishes and maintains an employment relationship with its employees which is intended to be long term and not temporary, and retains a right to hire, reassign, and fire the employees.

Businesses today need help managing increasingly complex employee related matters such as personnel management, health benefits, workers’ compensation claims, payroll, payroll tax compliance, and unemployment insurance claims. Businesses contract with Your Source to assume these responsibilities, which then allows the client to concentrate on the revenue-producing side of its operations.

Michigan Professional Employer Organization (PEO)