PEO Services in India | PEO India

What is a PEO?

A Professional Employer Organization (PEO) is a specialized service provider that offers comprehensive HR solutions to businesses, particularly those looking to expand their operations in the country. PEOs operate on a co-employment model, where they become the legal employer of their client companies' workforce for administrative tasks. This arrangement allows PEOs to handle a wide range of HR operations , including payroll processing, tax filing, compliance management, employee benefits administration, and risk mitigation.

Unlike traditional PEOs in the USA, which operate under a co-employment model, PEOs in India function more like Employers of Record (EOR) or International PEOs. A PEO service provider in India, enters into a joint-employment relationship with client companies, effectively becoming the legal employer for their workforce in India. This arrangement allows businesses to hire and manage employees in India without establishing a local entity, significantly simplifying market entry and ongoing operations.‍

What services does a PEO provide?

PEO services in India offer a comprehensive suite of HR services, including payroll processing, tax filing, regulatory compliance, employee benefits administration, and risk mitigation. Additionally, PEOs handle employee onboarding and offboarding, policy creation, performance management, training and development, and employee relations support. They also manage workers' compensation insurance, offer recruitment and staffing support, time and attendance management, employee assistance programs, and provide access to HR management software. By outsourcing these HR operations, businesses can focus on their core business objective while the PEO ensures compliance and provides competitive benefits to employees.

‍What are the benefits of using Professional Employer Organization (PEO) services in India?

Local Expertise and Compliance Management

PEO services in India offer invaluable local expertise, ensuring businesses navigate the complex landscape of Indian employment laws, tax regulations, and cultural nuances with ease. These providers have in-depth knowledge of compliance requirements, including labor laws, payroll taxes, and statutory benefits. By leveraging their expertise, companies can significantly reduce the risk of non-compliance, avoid costly penalties, and focus on their core business operations without worrying about the intricacies of local regulations.

Cost-Effective HR Solutions

PEO services provide a cost-effective alternative to establishing and maintaining a full-fledged HR department, especially for small and medium-sized enterprises (SMEs) and international companies entering the Indian market. By leveraging economies of scale, PEOs can often negotiate better rates for benefits packages and insurance options than smaller companies could obtain on their own. This not only helps in reducing overall employment costs but also enhances the company's ability to attract and retain skilled professionals in the competitive Indian job market.

Simplified Market Entry and Expansion

For businesses looking to expand into India, PEO services offer a streamlined approach to market entry. By functioning as Employers of Record (EOR), PEOs allow companies to hire and manage employees in India without the need to establish a local legal entity. This arrangement significantly simplifies the process of entering the Indian market, reducing the time, cost, and complexity associated with setting up a subsidiary or branch office. Companies can quickly scale their operations and test the market without long-term commitments or substantial upfront investments

Comprehensive HR Support and Employee Benefits

PEO services in India provide end-to-end HR solutions, including payroll processing, benefits administration, compliance management, and employee relations support. They handle critical tasks such as employee onboarding, policy creation, performance management, and training and development. Additionally, PEOs offer competitive benefits packages, including health insurance, retirement plans, and other perks that help businesses attract top talent. This comprehensive support allows companies to provide a positive employee experience while focusing on their core business objective

What is the difference between PEO and EOR?

The key differences between a Professional Employer Organization (PEO) and an Employer of Record (EOR) service model are rooted in the structure of their employment relationships, compliance responsibilities, scalability, and scope of services. Here's a comprehensive comparison:

What is the difference between PEO services in USA vs India?

Professional Employer Organizations (PEOs) operate differently in the USA compared to India due to the unique employment laws, market needs, and operational models of each country. Here's a detailed comparison:

‍Operational Model:

• USA PEO: Operates under a co-employment model, where both the PEO and the client company share employer responsibilities. This means the client company retains some legal accountability for its employees, allowing for shared responsibilities, risk management, and benefits administration.
• India PEO: Functions more like an Employer of Record (EOR), managing the workforce on behalf of the client company without requiring a local legal entity. This model offers greater flexibility for international companies entering the Indian market, allowing them to hire without long-term commitments to a legal structure.

Scope of Services:

• USA PEO: Provides comprehensive HR services primarily for existing US entities, focusing on domestic operations. These services include payroll, benefits, compliance, and HR support tailored to the complex US regulatory environment.
• India PEO: Offers holistic HR and compliance services tailored to international businesses entering India. Services also cover payroll, benefits, recruitment, and compliance, but with a focus on adapting to Indian labor laws, cultural norms, and providing market entry support.

Compliance Requirements:

• USA PEO: Navigates complex federal, state, and local laws, ensuring compliance with employment regulations across multiple levels of government. This includes handling various tax withholdings, statutory deductions, and social security obligations.
• India PEO: Handles legal compliance specifically with Indian labor laws, tax regulations, and other statutory requirements. This ensures businesses meet all legal obligations related to employee compensation, benefits, and employment contracts.

Market Focus:

• USA PEO: Primarily serves domestic US markets, supporting companies already operating within the country.
• India PEO: Targets international companies aiming for market entry and expansion into India. PEOs in India offer localized expertise and comprehensive support for foreign businesses unfamiliar with the Indian market.

Pricing Structures:

• USA PEO: Typically involves higher costs due to shared responsibilities, insurance, and benefits administration. The pricing is often a percentage of payroll or a flat fee per employee.
• India PEO: More cost-effective for international businesses due to outsourced liability and compliance management. This model offers significant savings compared to establishing entity or handling HR functions independently

PEO services in India are more aligned with the Global PEO/EOR model. In the Indian context, these services function as Employers of Record, allowing foreign companies to hire and manage remote employees in India without establishing a local entity. This approach simplifies market entry and ongoing operations for businesses looking to expand into the Indian market.

How PEO's in India Can Help a Company Hire and Onboard Talent?

Hiring and onboarding talent in India can be fraught with challenges, including long notice periods, offer shopping, no-shows, and resume fraud. Here's how partnering with a Professional Employer Organization (PEO) in India can address these issues and streamline the process:

‍Streamlined Recruitment Process:

• Identify Suitable Candidates: PEOs have access to networks of experienced recruiters who understand the Indian job market, reducing the time and effort spent on sourcing candidates.
• Conduct Background Checks: PEOs can conduct thorough background and reference checks to mitigate resume fraud, ensuring that candidates are qualified and experienced as claimed.‍
• Cultural Sensitivity: They understand the cultural nuances of the Indian workforce, helping companies navigate local customs, language, and work practices.

Efficient Onboarding:

• Manage Notice Periods: PEOs can negotiate shorter notice periods with candidates' current employers or offer incentives to expedite onboarding.
• Engage Candidates: Through personalized communication and engagement strategies, PEOs keep candidates engaged and informed, reducing the risk of no-shows.

Compliance and Legal Expertise:

• Employee Contracts: PEOs draft contracts that are compliant with laws, reducing legal risks for the client company.
• Tax and Benefits: They handle payroll, benefits administration, and compliance with tax regulations, ensuring that employees are correctly compensated and receive statutory benefits.

In summary, a PEO service in India acts as an extension of your HR department, handling the complexities of hiring process in a new country. They provide an efficient, compliant, and cost-effective solution for businesses looking to expand their operations in India, allowing companies to focus on growth while the PEO manages the intricacies of local employment. Partnering with a PEO can navigate the challenges of hiring and onboarding talent in India, making the process smoother and more predictable.

How does PEO companies in India ensure compliance with local tax regulations?

Managing tax compliance in India involves navigating intricate laws and regulations, which can be daunting for businesses not familiar with the local system. Here's how a Professional Employer Organization (PEO) in India, functioning as an Employer of Record (EOR), can simplify the tax filing process:

Compliance with Indian Tax Laws:

PEOs ensure that companies adhere to India's complex tax regulations, including:

• Income Tax (TDS): Employers are required to deduct Tax Deducted at Source (TDS) from their employees' salaries based on applicable tax slabs and remit it to the government. PEOs calculate, withhold, and file TDS returns accurately, ensuring compliance with Income Tax laws.
• Provident Fund (PF): PEOs manage the contributions to the Provident Fund, ensuring that both the employer and employee contributions are correctly calculated and deposited within the stipulated timelines.
• Employee State Insurance (ESI): They handle the ESI contributions for employees earning below a certain threshold, ensuring that the necessary deductions are made and remitted.
• Professional Tax: PEOs deduct and remit Professional Tax, a state-level tax, based on predefined slabs.
• Goods and Services Tax (GST): For companies providing services, PEOs assist in GST registration and filing if the annual turnover exceeds the prescribed threshold.

Risk Mitigation:

By acting as the Employer of Record on paper, the employee is considered their own, and as a result, PEOs assume the legal responsibility for tax compliance, thereby

• Protecting the Hiring Company: The PEO handles tax-related liabilities, protecting the client company from potential legal and financial risks.
• Handling Audits: In case of tax audits, PEOs represent the client company, providing necessary documentation and support.

Employee Tax Optimization:

PEOs offer personalized tax planning services to maximize employees' take-home pay:

• Deductions and Exemptions: By leveraging deductions under Section 80C, Section 80D, and other applicable sections, PEOs help employees reduce their taxable income.
• Flexible Benefits Plan (FBP): PEOs like Wisemonk provide a customizable salary structure through an FBP, allowing employees to tailor their salary components for tax savings.

Efficient Tax Compliance & Risk Mitigation:

PEOs streamline the tax filing process by:

• Managing Payroll: PEOs handle payroll processing, ensuring accurate salary calculations, deductions, and timely salary disbursement, all in compliance with tax laws.
• Timely Filing: They ensure that all tax-related filings, including TDS returns, PF and ESI contributions, and Professional Tax, are filed on time to avoid penalties.
• Documentation: PEOs maintain proper records and documentation for tax purposes, providing necessary evidence in case of audits or legal scrutiny.
• Expert Support: PEOs have in-house tax experts or work with tax advisors to stay updated with the latest tax regulations, ensuring compliance and reducing the risk of non-compliance penalties.
• Protecting the Hiring Company: The PEO handles tax-related liabilities, protecting the client company from potential legal and financial risks.
• Handling Audits: In case of tax audits, PEOs represent the client company, providing necessary documentation and support.

How an Indian PEO Helps with Benefits Administration for Employees in India?

A Professional Employer Organization (PEO) functioning as an Employer of Record (EOR) in India plays a crucial role in the administration of employee benefits for businesses operating in the country. Here’s how an Indian PEO (EOR) can streamline and enhance the benefits management process:

‍1. Comprehensive Benefits Management: An Indian PEO (EOR) handles the entire benefits administration process, ensuring that employees receive the benefits they are entitled to under Indian law. This includes:

• Health Insurance: Providing access to competitive health insurance plans, managing enrollment, and handling claims.
• Retirement and Pension Schemes: Administering contributions to Provident Fund (PF), Employee Pension Scheme (EPS), and other retirement benefits.
• Statutory Benefits: Ensuring compliance with mandatory benefits like Employee State Insurance (ESI), Professional Tax, and other statutory requirements.

2. Customized Benefits Packages: An Indian PEO (EOR) can tailor benefits packages to meet the specific needs of both the business and its employees:

• Flexible Benefits Plan (FBP): Companies can choose from a variety of benefits options, allowing employees to customize their salary components for tax optimization.
• Competitive Benefits: Leveraging their expertise and economies of scale, PEOs can offer competitive benefits at better rates than smaller companies could negotiate independently.

Partnering with an Indian PEO (EOR) simplifies the complexities of employee benefits administration, ensuring compliance, cost-effectiveness, and employee satisfaction.

Top 6 PEO Service Providers in India [2025]

Selecting the best PEO service provider in India is critical for businesses looking to expand into the Indian market. These providers manage HR, payroll, taxes, and compliance, making market entry smoother and less risky. Local PEOs like Wisemonk have a deep understanding of Indian employment laws, tax regulations, and cultural intricacies, offering a significant advantage over global options.

Here's the list of Top PEO service providers in India: Wisemonk, Deel, Rippling, Remote, Papaya Global, Multiplier, and Oyster HR, each offering comprehensive HR, payroll, compliance, and market entry support tailored to the Indian market's unique needs.

1. Wisemonk : #1 Ranked PEO Service Provider in India

Wisemonk is a leading PEO service provider in India, offering comprehensive Employer of Record (EOR) and Professional Employer Organization (PEO) solutions for businesses looking to expand into India. They specialize in simplifying the complexities of hiring, payroll, and compliance in India.

‍Key Features:

• Local Expertise: Deep understanding of Indian labor laws, tax regulations, and cultural nuances.
• Customizable Benefits: Flexible Benefits Plan (FBP) for tax optimization and personalized benefits packages.
• Equipment Procurement: Unique service for equipment procurement, leasing, and management.
• Cost-Effective: Transparent pricing starting at $75 per employee per month.
• Hiring Support: Specialized hiring services for top-quality talent in India.
• Compliance Management: Ensures adherence to local labor laws, reducing compliance risks.

Pricing:

• India PEO (EOR) Services: From $75 per employee/month (salary slab-based)
• Contractor Management: $9 per contractor/month
• Equipment Procurement: Custom pricing based on requirements

G2 Rating: 4.8/5

‍Wisemonk's strength lies in its deep-rooted Indian market expertise, making it an ideal choice for PEO service providers in India focused on local hiring and compliance. Their cost-effective pricing and comprehensive support for businesses expanding into India make them a standout option compared to global EOR providers like Deel.

2. Deel

Deel is a leading PEO service provider in India and globally, offering a comprehensive platform for hiring, payroll, and HR management in over 150 countries.

‍Key Features:

• Global Coverage: Deel supports hiring in over 150 countries, making it ideal for businesses looking to expand internationally.
• Simplified Compliance: Ensures adherence to local labor laws, reducing legal risks.
• Intuitive Platform: User-friendly interface for seamless HR task management.
• Payroll Efficiency: Centralized payroll dashboard for managing workforce payments.
• Dedicated Support: Responsive customer support with a high CSAT rating.

Pricing:

• India PEO (EOR) Services: From $599 per employee/month
• Contractor Management: $49 per contractor/month

G2 Rating: 4.8/5

‍Deel's focus on simplifying global hiring and compliance makes it a popular choice among PEO service providers in India. Its comprehensive features, customer support, and transparent pricing structure are appreciated, although some users note issues with system errors and customization limitations.

3. Rippling

Rippling is a global workforce management platform that offers HR, IT, finance, and PEO services, including Employer of Record (EOR) solutions. As one of the PEO service providers in India, Rippling provides:

• Unified HRIS: Integrates HR, payroll, benefits, and IT functions for seamless management.
• Compliance Management: Incorporates out-of-the-box compliance policies and alerts based on local regulations.
• Global Payroll: Processes payroll for employees in over 50 countries, ensuring compliance with laws.
• Automation: Automates HR tasks like onboarding, time tracking, and benefits enrollment.
• Performance Management: Tracks performance, feedback, and growth opportunities for employees.

Pricing:

• India PEO (EOR) Services: From $599 per employee/month

G2 Rating: 4.6/5

‍Rippling's global reach and comprehensive HR management tools make it a strong choice for businesses expanding internationally. However, since it is a global player, it may lack the local expertise to run the India expansion as efficiently as some local PEO service providers in India.

4. Papaya Global

Papaya Global is a leading global workforce management platform, offering comprehensive payroll, HR, and EOR services in over 160 countries. They focus on streamlining international hiring and compliance.

‍Key Features:

• Global Payroll Services: Manages payroll for employees in 160 countries, ensuring compliance with local regulations.
• Embedded Payments: Supports payments in local currencies for seamless international transactions.
• Compliance Management: Ensures adherence to local laws and regulations, including GDPR.
• HR and Payroll Analytics: Provides data insights for smart decision making.

Pricing:

• Papaya Global EOR: Starting at $599 per full-time employee per month.
• Papaya Global Contractor: $30 per contractor per month.
• Papaya Global Payments: Starting at $2.5 per transaction.

5. Remote

Remote is a global HR and payroll platform known for its expertise in managing remote teams and providing EOR services worldwide.

‍Key Features:

• Global EOR Services: Facilitates hiring in over 60 countries without local entities.
• Payroll Management: Handles payroll, tax deductions, and benefits administration.
• Compliance Assistance: Ensures compliance with local labor laws and regulations.
• Employee Self-Service: Portal for employees to manage personal details and payroll information.

Pricing:

• EOR Services: $599 per employee per month.

6. Oyster HR

Oyster HR provides an EOR solution tailored for hiring and managing remote teams globally, with a focus on compliance and simplicity.

‍Key Features:

• Global Employment: Compliant employment in over 180 countries.
• Payroll and Benefits: Manages payroll, insurance, pensions, and benefits.
• HR Management: Full lifecycle HR support from hiring to separation.
• Automation: Automates hiring, onboarding, and payroll.

Pricing:

• Oyster HR EOR: $599 per employee per month.

In conclusion, while Wisemonk stands out as the best-suited PEO service provider in India due to its unparalleled local expertise, understanding of local employment laws, and tailored services for the Indian market, global players like Deel, Rippling, Papaya Global, Remote, Oyster HR, and Multiplier might lack flexibility and local knowledge necessary for efficient operations in India.

How to Choose the Right PEO Services Provider in India for Your Business?

When choosing a PEO service provider in India for your business, consider these key aspects:

• Local Expertise: Opt for a local PEO service providers for their in-depth knowledge of Indian labor laws, compliance, and cultural nuances. They understand the local market, making business operations smoother.
• Service Offerings: Ensure the PEO provides comprehensive HR services, including payroll, benefits administration, compliance management, and recruitment support tailored to your business needs.
• Reputation and References: Research the PEO service provider's track record, read client testimonials, and seek references to gauge their reliability and satisfaction levels.
• Cost Structure: Understand the pricing model, which can be a percentage of payroll or a flat fee per employee. Transparent cost structures help avoid hidden charges.
• Technology and Integration: A user-friendly platform for HR tasks and seamless integration with your systems can simplify operations.
• Client Support: Choose a PEO services provider with responsive support and a dedicated team for your account.

Considering these factors, Local PEO service providers in India like Wisemonk are often better suited to handle the complexities of the Indian market, making them a strategic choice for companies expanding into India.

Why  Choose Wisemonk?

‍Wisemonk stands out as the premier Professional Employer Organization (PEO) service provider in India for several compelling reasons, making it the ideal choice for companies looking to expand into the Indian market:

Comprehensive HR Solutions

Wisemonk offers end-to-end HR services, including employee onboarding and offboarding, leave management, payroll processing, and termination assistance. By providing a one-stop solution for HR needs, Wisemonk simplifies operations and ensures compliance with Indian labor laws.

Recruitment and Talent Sourcing

Wisemonk provides specialized hiring services to help companies find top-quality talent in India. Our recruitment services include resume screening, candidate sourcing, and interview coordination. This comprehensive approach to talent acquisition helps businesses build strong teams quickly and efficiently understanding the local job market and vast talent pools.

Local Expertise and Compliance Management

With deep knowledge of Indian employment laws, tax regulations, and cultural nuances, Wisemonk ensures full compliance with local requirements. Our team stays up-to-date with changing regulations, handling all administrative and legal work related to employment.

Equipment Procurement and Management

Uniquely among PEO providers, Wisemonk offers equipment procurement and management services. This includes sourcing, leasing, and managing work equipment for employees, which is particularly valuable for companies setting up remote teams or expanding into India. This service ensures that employees have the necessary tools to perform their jobs effectively.

Flexible Employment Models

Wisemonk supports both full-time employee and contractor management, offering flexibility in hiring models. This versatility allows companies to structure their workforce according to their specific needs, whether they require long-term employees or project-based contractors.

Streamlined Payroll and Tax Management

Wisemonk's payroll services ensure accurate and timely salary disbursements while handling all tax-related matters. They manage statutory deductions, file necessary tax returns, and optimize employee compensation structures for tax efficiency.

In summary, choosing Wisemonk as your PEO partner in India provides not just HR outsourcing but a strategic alliance that empowers your business with local HR expertise, cost-effective solutions, and employee-focused initiatives.

FAQs

What does PEO stand for?

PEO stands for Professional Employer Organization. It refers to a company that enters into a co-employment agreement with businesses to manage various HR-related tasks and responsibilities such as payroll processing, benefits administration, and compliance management.

What is the difference between PEO and EOR?

PEOs have a co-employment relationship with clients, sharing employer responsibilities, while the client remains the legal employer, focusing on payroll management and benefits. EORs act as the legal employer for a company's workforce in countries without a local entity, handling employment contracts, compliance with local employment laws, and international expansion without establishing a subsidiary.

What are the advantages of using an PEO in India (EOR)?

PEOs ensure compliance with local employment laws, manage HR processes efficiently, provide cost savings through economies of scale, offer access to local hiring expertise, and mitigate risks by serving as the legal employer. They simplify HR administration, allowing companies to focus on core operations while effectively managing their workforce in India.

What services does a PEO provide?

A PEO typically offers a comprehensive suite of HR services, including payroll processing, benefits administration, tax compliance, and risk management. They handle tasks such as employee onboarding, managing health insurance and retirement plans, workers' compensation administration, and ensuring compliance with labor laws and regulations.

What are the three types of PEO?

PEOs can be categorized based on their service models and focus. The first type is co-employers, who become the employer of record and support HR activities while allowing the client to maintain some control. The second type is professional employer organizations that provide HR services without becoming the employer of record. The third type is staffing companies, which offer flexible HR services on a contractual basis.

How much does PEO cost per employee?

The cost of PEO services in India per employee can range significantly. Typically, PEOs in India like Wisemonk charge a monthly fee between $75 to $300 per employee. This fee covers services like payroll management, benefits administration, and compliance. However, some PEOs might also charge a fixed percentage over the monthly payroll cost, which can range from 8% to 12%, making the cost variable depending on employee salary packages.

How do PEO's in India fees compare to the costs of setting up local entities in India?

Setting up a local entity in India can be costly due to legal fees, registration costs, and the need for local infrastructure. PEO services, on the other hand, provide HR outsourcing solutions with a fee structure based on the number of employees, often starting at a lower initial cost. While long-term hiring costs might be higher due to ongoing service fees, the initial investment is significantly less, and the pay employees function is handled efficiently.

What are the legal implications of using PEO service providers for hiring in India?

PEOs handle legally compliant employment contracts, manage co-employment relationships, and ensure proper tax deductions. Misclassification risks and IP issues can arise if not managed correctly. PEOs help navigate legal complexities but may create tax obligations for foreign companies. Understanding the legal implications is crucial when engaging a PEO in India.

How do PEO's in India ensure compliance with local labor laws and tax regulations?

PEOs have dedicated compliance assistance teams that stay updated on local employment laws. They use automated payroll systems for accurate tax deductions and contributions, conducting regular audits to identify and rectify discrepancies. PEOs help navigate the complexities of Indian labor laws and tax regulations, ensuring compliance for their clients.

Can PEO services in India help with both full-time employees and independent contractors?

Yes, PEOs cater to both full-time employees and contractors. For employees, they handle the entire employment lifecycle, from hiring to payroll and HR processes. For contractors, PEOs manage agreements, ensure compliance, and facilitate local payments. They offer comprehensive solutions for managing diverse types of workers in India.

How easy is it to transition from using a PEO to setting up a local entity in India?

Transitioning from a PEO to a legal entity in India involves several steps but can be streamlined with proper planning. Companies must assess their options, register for taxes, obtain necessary permits and licenses, transfer employees, and establish HR policies. This process can take up to 2-4 months due to the need for approvals from the parent company.

What are the pros and cons of using a global PEO versus regional or local PEO service providers in India like Wisemonk?

Pros of global PEOs: expansive network, economies of scale, consistency across countries. Cons: may lack local expertise, higher costs. Pros of local PEOs like Wisemonk: deep understanding of Indian laws and culture, cost-effective. Cons: limited global reach, scalability challenges for expansion.

What are the differences between using a PEO and hiring employees as independent contractors in India?

PEOs employ workers, manage HR processes, and provide top-tier employee benefits, ensuring compliance with employment laws. Contractors are not employees, reducing employer liabilities but also control over work and employment practices. Companies must ensure contractor agreements comply with Indian laws. PEOs offer a co-employment relationship, while contractors have a more independent status.

Can PEOs assist with the termination process and severance payments according to Indian labor laws?

Yes, PEOs can assist with the termination process in India. They ensure that terminations are carried out in compliance with Indian labor laws, which include handling notice periods, severance pay, and providing full and final settlements. PEOs manage the documentation, calculations, and communication related to termination, ensuring that both the employer and employee fulfill their legal obligations. This includes providing notice as per the employment contract or statutory requirements, computing and paying any due severance, and issuing a final settlement statement.

How do PEO in India handle intellectual property rights and confidentiality agreements for Indian employees?

PEOs ensure that Indian employees working through their services sign confidentiality agreements and adhere to intellectual property (IP) rights policies. They draft and enforce contracts that protect the client company's IP, ensuring that employees understand and comply with non-disclosure and confidentiality obligations. PEOs also monitor and manage IP-related issues, ensuring that all proprietary information remains protected, even in the event of employee termination or transition.

How does a PEO make money?

PEOs primarily generate revenue through administrative fees (admin fees). These fees vary based on the services provided, the timing of the charges, and the pricing structure. They leverage economies of scale to offer competitive pricing on employee benefits, taxes, and insurance plans, thereby creating a profitable business model while providing comprehensive HR consulting and support to their clients.