What Responsibilities are typically assumed by the PEO?
PEOs assume responsibility and liability for payment of wages and compliance with all rules and regulations governing the reporting and payment of federal and state taxes on wages paid to its employees. PEOs become responsible for the payment of state unemployment taxes. They are also responsible for the workers’ compensation coverage. Additionally, PEOs provide employees with coverage under the entire spectrum of employment laws and regulations, including federal, state, and local discrimination laws, Title VII of the 1964 Civil Rights Act, Age Discrimination in Employment Act, ADA, FMLA, HIPPA, Equal Pay Act, and COBRA. Once included in the PEOs workforce, these laws protect the workers.
