What is a Professional Employer Organization (PEO)?

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Professional Employer Organization (PEO)

A Professional Employer Organisation (PEO) is an entity that co-employs an individual with an employer. The PEO and the employer specifically share liability for the individual. Professional Employer Organisations almost always provide employee benefits and are very common in the U.S. (less so internationally).

How does a PEO work?

PEOs are effectively outsourced HR departments. They specialize in managing HR-related tasks, while the employer continues to manage the day-to-day activities of the employees. For example, a PEO might handle payroll, taxes, and other employment benefits while the employer handles the operational aspects of the employee relationship.

Is Oyster a PEO?

Oyster is not a PEO and does not offer this service. Oyster makes use of PEOs in some countries to manage payroll functions relating to team members in that country.

Disclaimer: This article and all information in it is provided for general informational purposes only. It does not and is not intended to, constitute legal or tax advice. You should consult with a qualified legal or tax professional for advice regarding any legal or tax matter and prior to acting (or refraining from acting) on the basis of any information provided on this website.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, hire, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.