What is a PEO ?
PEO - Professional Employer Organization

What is a PEO?

The process of doing a remote job with an independent contractor or freelancer can be very troublesome and complicated. Dealing with payroll and taxes can be very demanding, especially if you want to work with skilled freelancers or independent contractors in different states or countries other than the US.

PEO is a new generation of HR-like service that aims to facilitate the relations of employees with the “all-in-one” method. With a PEO, you don’t need to go forward with the freelancer style. You can employ anyone in the world with a PEO.

PEO is Not an EOR!

PEO (Professional Employment Organization) and EOR (Employer of Record) are often confused with each other. While the PEO offers human resources support to companies; the EOR is the registered employer for the worker, but does not have any supervisory or management role vis a vis the employee’s position. The original employer maintains the substantive work relationship, making all decisions on compensation, position duties, projects, and termination.

PEO Meaning

PEO stands for “Professional Employment Organization”. It is a new and easy HR-Payroll-Related tax service. Although it is specially designed for medium-sized companies, it attracts the attention and interest of all-sized companies. Because even start-ups, such as a large scale GitHub company, have adopted the method of working remotely. At this point, large companies are also going to get a PEO service for international taxation, payroll, and human resources management needs.

PEO Companies

PEO companies are companies that manage administrative affairs between business owners and independent contractors and freelancers, such as Payroll-Related Taxes-HR, and offer these services to both parties. PEO companies strive for the best for both business owners and employers.

PEO Organization

The PEO organization means the “all-in-one” gathering of all the administrative affairs between the business owners and remote-employees. In this way, you no longer need boring and sullen human resources staff.

PEO Insurance

A PEO lets you offer a richer, more complete benefits package than you could likely provide on your own — everything from:

  • Medical & Dental benefits
  • Vision and life insurance
  • Commuter benefits
  • Long- and short-term disability
  • 401(k) plans

and more. PEOs offer a variety of insurance plans to remote employees. At this point, working through the PEO service will be much more advantageous for employees. Many freelancers are now directing their employers to work with PEO organizations.

PEO Payroll

A Remote Team PEO service does automated payroll that enables remote teams to handle compensation, deductions, additional earnings, and time-offs for you. Payroll is synced with productivity tools and payment platforms to help companies run a complete automated payroll system.


A Remote Team PEO service is an all-in-one HR solution for ‘remote-first’ teams. The fully-integrated platform helps companies automate and easily manage payments, tax compliance, expense reimbursements, time-off policies, team productivity, and more.

PEO Benefits

As firms that employ a myriad of people from different backgrounds, geographical locations, and legal systems, remote companies are faced with a lot of problems; paramount among them is paying workers and managing their payroll, adhering to the employment laws of the countries where their employees come from, and managing time-offs with the different holidays.

As a PEO service, Remote Team is set out to solve these problems and many more. We aim to be an indispensable operating system for remote companies. Remote Team platform is the place where remote companies come to automate their international payrolls, manage time-offs and holidays of their employees, comply with employment laws of different countries, manage business inventory, monitor expenditure, and manage all necessary employment documents online.

Pros and Cons of PEO

Pros of PEO:

  • Minimizes the risks
  • Lowers legal liability
  • Creates a safer workplace

Possible Cons of PEO:

  • Lack of team communication
  • Requires a high level of trust for partnerships

Frequently Asked Questions

What is a PEO insurance policy?

What is a PEO retirement plan?

What is the best PEO?

Why should I use a PEO?

What services do PEO provide?

How much does a PEO cost?


What is the benefit of a PEO?

What is a PEO and how does it work?

What does a PEO stand for?

What are the pros and cons of a PEO?

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Is a PEO a good idea?

What is the difference between a PEO and a staffing company?