No, a Professional Employer Organization (PEO) is similar yet fundamentally different from our service as an Employer of Record (EOR).
Some of the main differences include that a PEO is based on a co-employment model while an EOR is a sole-employer model. When using a PEO, the client has to fund the fully loaded payroll burden up front, whereas an EOR may elect to provide funding for payroll burdens and recoup their payments afterwards. In general, PEO’s are prohibited (due to workers compensation laws and policies) from supporting staffing firms due to the temporary nature of the workforce employed and lack of direct control over workplace safety. In contrast, an EOR focuses on only supporting temporary/contract workers and does not support a business’ internal staff. Some of our clients utilize us for their contract placements, and a PEO for their internal staff.