What is Co-Employment?
Co-employment is the contractual arrangement between the client and the PEO that allows the PEO to provide a full range of services and to transfer or share many employer liabilities. Each party is responsible for certain employment obligations, and each party shares responsibility for other employment obligations. Workers become employees of two employers: the client retains supervision for production or delivery of service, and the PEO assumes responsibility for human resources and personnel services.
Under this arrangement, a client company contracts with an organization like Advantec as a co-employer of its worksite employees. Advantec and the client company share certain employer responsibilities, but the client company maintains control of its day-to-day operations and remains responsible for hiring and terminating employees. The provider assumes a certain degree of liability for the company’s payroll and tax administration, risk management, workers’ compensation coverage and compliance.
