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.