Professional Employer Organization (PEO)
A PEO co-employs workers alongside the client under a US-specific arrangement, sharing HR, benefits, and payroll administration. Unlike an EOR, a PEO requires the client to have its own legal entity in the country of employment.
PEOs are commonly used in the United States for small and mid-market employers who want enterprise-grade benefits and HR infrastructure without building an internal HR department. In global contexts the term is often used loosely — most global 'PEO' offerings are actually EOR services. If a provider says it can employ workers without your entity, it is an EOR, not a PEO.
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