How does the PEO process impact workers compensation?
25A. Depending on the type of PEO agreement, the client employer is transferring (or outsourcing) all or part of its workers compensation liability and experience, not to mention the function of managing the workers compensation responsibilities, to the PEO. The PEO ensures that all aspects of the client employer’s workers compensation policy is maintained. The PEO assumes the responsibility of reporting payroll and premium for the shared employees in addition to handling claim management responsibilities.