Are the empIoyees of the client company “released and rehired” by the PEO?
• No. Workers are not fired by the client business and rehired by the PEO. Instead, a worker becomes an employee of two employers in a co-employment relationship. • The PEO assumes employer responsibilities and liabilities for the human resource and personnel obligations of the worksite employees. This responsibility includes employees’ wages and employment taxes, workers’ compensation, unemployment insurance and administration of employee benefits. • The client company retains employer responsibilities and supervision for the production of the products or the delivery of services and the day-to-day management of the worksite employee.
Related Questions
- If the PEO itself is represented by a third-party and the PEO adds a new client company, do the PEO and the third-party representative both need to submit new power-of-attorney forms?
- Does the PEO need to register if its client company does not have employees in Washington right now, but has in the past?
- Who must enroll in E-Verify: the PEO or the client company?
