SmartHCM

What is Co-Employment?

What is co-employment?

Co-employment is a relationship where two or more employers share the responsibility and liability for an employee.

In this arrangement, one employer is typically the primary one, while the other is secondary, often a professional employer organization (PEO). The primary employer maintains control over day-to-day tasks and directs the employee’s work, while the PEO takes care of administrative functions like payroll, benefits administration, and HR compliance.