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  3. Professional employer organization

Professional employer organization (PEO)

Updated October 6, 2026

A professional employer organization is a company that shares employer responsibilities with a client under a co-employment model, typically requiring the client to have its own local legal entity.

Related terms

  • Agent of record
  • Contractor of record
  • Employer of record
  • Global payroll
  • Owned entity
  • Permanent establishment
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