PEO Employees are legally employed by both their organization and Deel, but they are paid and managed on the Deel platform.
A PEO is a Professional Employer Organization that outsources payroll and HR duties to small businesses.
Deel PEO is a co-employment solution that is available only for employees located in the United States. Deel shares in some of The Company’s legal and financial liability for the services.
Who Does What?
As co-employers, Deel and The Company have unique and specific responsibilities.
Essentially, Deel is the administrative employer and your company is the worksite employer. The following table is an overview of each party’s responsibilities:
| Task | Deel Responsibility | Company Responsibility | Notes |
| Legal Compliance | Yes | Yes |
Deel - Follows all Federal and State HR regulations. Company - Complies with all laws governing the business. |
| Compliance Documents | Yes | Yes |
Deel - Ensures the completion of all US, PEO and state-specific mandatory documents. Company - Reviews, approves and ensures the completion of all US, PEO and state-specific mandatory documents. |
| Employment Practices | Yes | Yes |
Deel - Is a consultant. Company - Implements practices in the workplace. |
| HR Practices | Yes | Yes |
Deel - Assists in establishing core HR practices, such as providing access to mandatory training, implementing compliant HR policies and generating employee handbooks. Company - Implements practices in the workplace. |
| Control of the Business and Confidential Information | No | Yes | The company is the worksite employer and responsible for all day to day activities of their employees. It also maintains control of the individual employees’ jobs, their business and any proprietary confidential information. |
| Payroll | Yes | No | Deel processes payroll payments in accordance with applicable laws and regulations, along with withholding, reporting and remitting to Federal, State, and local payroll taxes. |
| Payroll Data | No | Yes | The company provides all data necessary for Deel PEO to process payroll. |
| Tax Documents | Yes | No | Deel provides the employees’ W-2 Wage and Tax Statement. |
| Unemployment Compensation | Yes | No | Deel administers unemployment compensation filings and claims. |
| Employee Supervision and Worksite Safety | No | Yes | The company supervises their employees to ensure safe and lawful conduct of business. |
| Worker's Compensation | Yes | No | Deel provides Workers’ Compensation Insurance coverage and administers claims in accordance with applicable law. |
| Worker's Compensation Codes | No | Yes | The company provides Deel PEO with the Worker’s Compensation codes as part of underwriting, and notifies Deel of any changes to Worker’s Comp codes over time. |
| EPLI and Cyber Liability Insurance (CLI) | Yes | No | Deel provides Employment Practices Liability Insurance (EPLI), which is necessary for every company to have. Both EPLI and CLI include coverage for defense costs and damages related to various employment-related claims. |
| Benefits Administration (if elected) | Yes | No | Provides PEO sponsored benefits plans. |
| Other Taxes and Fees | No | Yes | The company pays and reports all taxes and governmental fees related to their business other than payroll-related withholding and taxes. |
Summary
Deel Responsibilities
Deel is the employer of record for many administrative purposes. Deel provides human resource services related to the PEO employee's employment with The Company, including benefits administration, new hire onboarding, and payroll administration. If there are any questions related to the human resource services being provided to The Company, please get in touch with a Deel representative.
Your Company
The Company is the worksite employer. As the worksite employer, The Company provides and maintains the workplace. They supervise the employee's day-to-day activities. They establish and communicate operating procedures. They provide the tools, equipment, and other things that the employee needs to do their work. They set the employee's rate of compensation and determine the benefits that the employees are offered. They are responsible for maintaining compliance with labor and employment laws, anti-discrimination provisions, and other laws designed to protect the rights of employees.
If there are questions related to any of these functions, please contact an immediate supervisor.