Professional Employer Organizations
Key Figures
Figures are published for NAICS 561330 directly.
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Official definition
This industry comprises establishments primarily engaged in providing human resources and human resource management services to client businesses and households. Establishments in this industry operate in a co-employment relationship with client businesses or organizations and are specialized in performing a wide range of human resource and personnel management duties, such as payroll, payroll tax, benefits administration, workers' compensation, unemployment, and human resource administration. Professional employer organizations (PEOs) are responsible for payroll, including withholding and remitting employment-related taxes, for some or all of the employees of their clients, and also serve as the employer of those employees for benefits and related purposes.
Source: US Census Bureau, 2017 NAICS Definitions. Public domain.
Which code does this activity belong in?
Professional Employer Organizations enter into co-employment relationships where they assume responsibility for payroll processing, tax withholding, benefits administration, and human resource management for their clients' employees. This differs from Employment Placement Agencies, which focus on matching job seekers with open positions and conducting recruitment activities. PEOs maintain ongoing administrative and employment relationships with client workforces, whereas placement agencies facilitate the initial matching of candidates to jobs.