A PEO administers payroll functions and assumes responsibility for payroll taxes, unemployment taxes, procuring and administering employee benefits, workers' compensation, and other services. A PEO is a partner that provides a comprehensive set of service designed to make business easier and more profitable.

Frees Up Time	PEO	Payroll Service
Process payroll, prints and distributes checks	Yes	Yes
Calculates and deposits Federal, FICA, FUTA, SUTA and local taxes	Yes	Yes
Helps administer workers' compensation claims	Yes	No
Procures and administers benefit plans, including 401(K)	Yes	No
Provides Employee Benefits
Administers group health insurance, dental coverage, life insurance	Yes	No
Provides a 401(K) plan	Yes	No
Provides other supplemental voluntary insurance products	Yes	No
Manages Risks
Assumes liability for timely payment of all payroll taxes	Yes	No
Maintains employee personnel files for improved government compliance	Yes	No
Provides I-9 and W-4 verification and maintenance under government guidelines	Yes	No
Stabilizes Cash Flow
Eliminates penalties associated with late tax payments and non-compliance	Yes	No
Reduces accounting costs	Yes	No