Justworks is a PEO
By signing up for Justworks, you are opting into our PEO (Professional Employer Organization) service which allows us to reduce the administrative burden of employment for your company.
How co-employment works
Co-employment is a legal arrangement recognized in some states in which your employees are employed by two employers: By you, for the purposes of direction, and by us, for the purposes of administration. Our Client Services Agreement delineates the responsibilities between your company and Justworks. The primary benefit of co-employment is that it enables Justworks to take on administrative obligations that your business would otherwise be required to take on. For example:
- Registration and ongoing filings with your state's unemployment agency
- Obtaining employment-related insurance such as worker's comp and EPLI
- Maintaining compliant I-9 records
In addition, co-employment makes it possible for us to seamlessly offer employee benefits such as medical, dental and vision insurance as well as 401(k).
You remain an employer (along with Justworks as co-employer) and may provide benefits to your team such as health, dental, vision, 401(k), as well as ancillary benefits such as life insurance, long and short term disability.
More information about PEOs
We wrote an article that our friends at Fundera published, about How Joining a PEO Saves You Time And Money, which may help you understand what a PEO is, and how it can help your business.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.