Co-employment is a contractual agreement between a company and a PEO that allocates and divides employer responsibilities. The contract is often called a client service agreement (CSA).
In a co-employment agreement, a PEO client’s employees (also called worksite employees) are employed by two separate entities, the client company and the PEO.
The client company is the employer who has a direct relationship with the employee and is responsible for all business decisions, operations, day-to-day supervision of employees, job assignments, employee reviews and assessments, and determining the employee’s salary and benefits offerings.
The PEO provides services related to employment such as: payroll processing; payroll tax administration; employee benefits; HR services; workers’ comp coverage and claims
management; compliance assistance; and HR technology platforms.
