Our Co-Employment Model Explained
Running a business means wearing many hats. But what if you could take off the complex, time-consuming HR hat and focus solely on what you do best growing your company? With the co-employment model from Employer Brief, you can. As a Professional Employer Organization (PEO), we partner with you to handle critical HR functions, giving you back time and peace of mind.
This page breaks down how our co-employment HR model works, its powerful benefits, and why it’s one of the smartest HR outsourcing solutions for modern businesses.
What Is the Co-Employment HR Model?
In simple terms, co-employment is a strategic partnership where a PEO shares certain employer responsibilities with your business. You remain the primary employer, controlling your company’s day-to-day operations, culture, and core business decisions.
Employer Brief, as your PEO partner, becomes the “employer of record” for administrative purposes. We take on the burden of HR tasks like payroll processing, employee benefits administration, tax filings, and HR compliance and risk management. This division of labor allows you to offer top-tier benefits and ensure compliance without the administrative headache.
How Does Co-Employment Work Step by Step?
Understanding how co-employment works is key to seeing its value. Our process is designed to be transparent, simple, and seamless from day one.
It all starts with a clear and straightforward co-employment agreement. This document outlines the specific responsibilities of both parties. We define exactly which HR tasks we will manage, ensuring you have a complete picture of our partnership. There are no hidden clauses or confusing terms—just a clear roadmap for our collaboration.
Once the agreement is in place, we divide the work.
- Your Company (The Client): You continue to manage your team, direct their daily tasks, set wages, and drive your business strategy. You are in full control of your company’s mission and growth.
- Employer Brief (The PEO): We handle the complex administrative side. This includes payroll, tax withholding, benefits management, workers’ compensation, and navigating the maze of federal and state employment laws.
We integrate our systems with yours for a smooth transition. Our team manages employee onboarding for HR and payroll, sets up benefits enrollment, and ensures all compliance frameworks are in place. Your employees gain access to a dedicated HR support team, and you get a partner who is always working to protect your business.
Benefits of Co-Employment for Your Business
Partnering with an employer solutions company through a PEO model unlocks significant advantages, especially for small and growing businesses.
- Access to Better Employee Benefits By pooling the employees of our client companies, we can negotiate for Fortune 500-level benefits at more affordable rates. This includes premium health insurance, dental, vision, and 401(k) plans that help you attract and retain top talent.
- Guaranteed HR Compliance and Risk Management Keeping up with ever-changing labor laws is a full-time job. We take on that responsibility, helping you avoid costly fines and legal issues related to compliance, from I-9 verification to state-specific leave laws.
- Simplified Payroll and Tax Management Say goodbye to payroll errors and tax filing stress. We ensure your employees are paid accurately and on time, while managing all payroll tax deductions and filings on your behalf.
- Reduced Employer Liability We help manage workers' compensation claims, unemployment claims, and other HR-related risks. Our expertise in HR compliance and risk management provides a critical layer of protection for your business.
- Focus on Growth With administrative burdens off your plate, you and your leadership team can dedicate your time and energy to innovation, customer service, and strategic growth.
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Why Choose Employer Brief as Your PEO Partner?
Choosing the right PEO is crucial. At Employer Brief, we are more than just a service provider; we are a dedicated partner in your success.
- 15+ Years of Experience: We have over a decade of experience helping businesses streamline their HR functions through effective PEO services for small business.
- A Trusted Employer Solutions Company: Businesses across the country trust us to manage their most valuable asset—their people. Our reputation is built on reliability and results.
- Transparent and Dedicated Support: You get clear pricing with no surprises and a dedicated team of HR experts ready to answer your questions and support your business goals.
Frequently Asked Questions
What is a co-employment agreement and how does it protect my business?
A co-employment agreement is a legal contract that formally outlines the responsibilities of both your company and the PEO. It protects your business by clearly defining which tasks the PEO is responsible for, such as payroll tax liability and benefits administration, thereby transferring a significant portion of employer-related risk.
Is the co-employment model suitable for small businesses?
Absolutely. In fact, PEO services for small business are one of the most effective ways to level the playing field. The model allows small companies to offer competitive benefits and access expert HR support that would otherwise be too costly, helping them attract and retain talent while staying compliant.
How is co-employment different from traditional outsourcing?
In a traditional outsourcing model, you hire a vendor to perform a specific task, like payroll. In the co-employment HR model, the PEO becomes a co-employer, sharing legal and administrative responsibilities. This deeper partnership provides more comprehensive support, including risk management and access to better benefits.
What are the benefits of co-employment compared to handling HR in-house?
The primary benefits of co-employment are cost savings, risk reduction, and access to expertise. An in-house HR department can be expensive. A PEO provides a full team of specialists in payroll, benefits, compliance, and risk management for a fraction of the cost, while also reducing your administrative burden and legal liability.