Who is the employer in a PEO relationship?

Both the client AND the PEO.  The client is the managing employer and the PEO is the administrative employer.

What happens if the Client/PEO relationship ends?


What are the benefits to being reported under a PEO’s FEIN number?

With the PEO relationship, PEOs have “skin in the game” with your compliance issues, because everything is reported under their FEIN number.

Where can I find a list of reputable PEOs?

Go to http://www.napeo.org and search the member directory.

Will my employees feel like they work for someone else?


Whose name is on the paycheck?

In most cases, both the client and PEO name appears on the paycheck.

Who do my employees call if they have questions on their benefits or payroll issues?

The PEO.

Do I have to adhere to FMLA if I am with a PEO.

No.  The U.S. Department of Labor has ruled that the “Client Employer” is the primary employer in a joint employment relationship with a PEO and as such determination of FMLA eligibility is based on the “Client Employer’s” employee count.

Can I have my own benefit plan and still use a PEO?


What if I have employment agreements with my employees?

Those agreements remain in effect between the client and their employees.