PEO Glossary
Understand the key terminology behind Professional Employer Organizations.
Co-employment: The legal arrangement between a PEO and a client company where both share employer responsibilities. Employer of Record (EOR): A company serving as the legal employer for workers while the client directs their work. EPLI: Employment Practices Liability Insurance — coverage for claims of wrongful termination or discrimination. FUTA and SUTA: Federal and State Unemployment Tax Act obligations handled by the PEO. Workers' Compensation: Insurance providing wage replacement and medical benefits to employees injured on the job, often available at lower rates through a PEO. ASO: Administrative Services Organization — similar to a PEO but without co-employment.