A(n) ____ typically takes over the staff of a small business and writes the paychecks, pays the taxes, prepares and implements HR policies, and keeps all the required records for a fee.

Question

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A professional employer organization (PEO) provides HR services to small businesses. This includes taking over the payroll function, preparing and implementing HR policies, paying taxes, and keeping all required records. The PEO essentially becomes the employer of record for the employees, while the small business retains control over day-to-day operations. The PEO charges a fee for their services. This distinguishes it from an employment agency, which typically helps businesses find and hire employees, and a payroll vendor, which provides only payroll processing services. A third-party employer is not a commonly used term in the HR industry.

A(n) ____ Typically Takes Over the Staff of a Small