# What is peo?

Source: https://launch-rec.com/glossary/peo. Category: Compliance. Market: US.

Also called: professional employer organisation.

## Definition

A professional employer organisation co-employs your internal staff, providing payroll, benefits and HR infrastructure under a shared-employment model.

## In practice

A PEO is usually for your own employees — recruiters, ops staff — not for the contractors you place. It buys access to benefits pricing a small agency could not get alone.

An EOR, by contrast, is the legal employer of a worker in a place you do not operate. Agencies frequently confuse the two in their first year.

## Related terms

- https://launch-rec.com/glossary/eor
- https://launch-rec.com/glossary/co-employment