A PEO (Professional Employment Organization) can help businesses improve their bottom line by taking over HR functions like payroll administration, benefits management, and ensuring regulatory compliance. Using a PEO creates a co-employment relationship where the PEO becomes the legal employer but the business still directs the work. This allows businesses to focus on core operations while reducing costs associated with HR administration and liability risks. Common benefits of using a PEO include reduced labor costs, simplified HR processes, quality benefits packages for employees, and protection from penalties for non-compliance.