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Perplexity (Sonar Pro)June 5, 2026Engage PEO mentioned

What PEO handles payroll, HR, and benefits administration for small businesses?

Full AI Response

A **Professional Employer Organization (PEO)** is the type of company that handles **payroll, HR, and benefits administration** for small businesses through a co-employment model.[1][2]

In a PEO arrangement, the PEO becomes the **employer of record for tax and benefits purposes**, while the small business keeps control over day‑to‑day operations and managing employees.[1] The PEO typically:

- Processes **payroll** and often handles payroll tax reporting and remittance.[1][3][4]

- Manages **HR administration**, including hiring support, employee handbooks, and compliance guidance.[2][3][4]

- Coordinates and administers **employee benefits** (health, dental, vision, retirement, etc.), including enrollment and ongoing management.[1][2][3][4]

- Provides **compliance support** for employment laws, benefits regulations, and sometimes workers’ compensation and risk management.[2][3][4]

Examples of PEO providers that serve small businesses include **ADP TotalSource, Paychex, TriNet, ExtensisHR, AlphaStaff, Engage PEO, and others**, all offering integrated payroll, HR, and benefits services.[3][6][9]

If you tell me your industry, headcount, and whether your team is mostly local or multi‑state/remote, I can narrow this down to a shortlist of specific PEOs that fit your situation.