×
Saturday, September 26, 2026

What Is Co-Employment? Definition, Pros & Cons - Forbes

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Table of Contents

Do you want to focus on running your business and outsource the time-consuming resource-intensive duties that come from human resources administration? You aren’t alone and there are options for doing so. For example, Co-employment is an attractive arrangement in which a business shares employment responsibilities with a professional employer organization (PEO). By outsourcing these administrative functions, businesses can reduce expenses and mitigate some of the liabilities that come with being an employer. In this article, we explain what co employment is, how it can benefit businesses and some things to expect if you choose to use this arrangement.

Find Your Next Great Hire Through ZipRecruiter’s Online Employment Marketplace

Try ZipRecruiter today by creating a free account!

What Is Co-Employment?

Co-employment is a contractual relationship in which a business continues to manage day-to-day employment decisions and a PEO handles administrative HR functions, such as payroll, benefits and workers’ compensation insurance. The usefulness of this arrangement is to relieve the employer of the time and resources needed to manage HR tasks themselves so they can focus on other duties directly related to growing the business.

Although co-employment can be used when staffing agencies employ independent contractors for their...



Read Full Story: https://news.google.com/__i/rss/rd/articles/CBMiNmh0dHBzOi8vd3d3LmZvcmJlcy5jb...