Professional Employer Organizations, or PEOs, are businesses that provide HR outsourcing services to other companies. In Texas, PEOs are regulated by the Professional Employment Organization Act
, which sets forth requirements for licensing, bonded trust accounts, and employee protection. PEOs can provide a wide range of services, including payroll processing, benefits administration, and workers' compensation insurance. By outsourcing these functions to a PEO, companies can save time and money while reducing their risk exposure. For companies in Texas that are looking for an HR outsourcing partner, a professional employer organization can be an excellent solution.