Co-Employment Agreement

The PEO supports co-employment tasks related to the employee`s backend management. It includes: In a co-employment contract, employers manage day-to-day activities and essential tasks, including: In a co-employment contract, your company`s employees (also called worksite employees) are employed by two separate entities: some companies may use co-employment as an opportunity to hire independent contractors without taking on additional personnel matters such as compensation and tax liability. However, this structural regime does not eliminate the risk. An agreement can also be considered a joint job and not a co-employment if it fulfils most of these conditions: but before deciding whether you want to have your business in this type of agreement, it is better to know what co-employment really is and how different it is from other employment organizations. With co-employment, the company can also make its planning and payroll management more efficient. The IEP handles staff compensation and pay cheques, as well as proper wage reporting. It also manages local tax rules on behalf of the company to ensure that its operations are legally correct. In return, the company can focus on improving its relationships, procedures and marketing within a foreign company. For more information on the benefits of co-employment or partnering with an OEP, please contact 630.928.0510 or email You can also complete our free advice request. They offer you a financial comparison between your current HR practices and our services.

Co-employment is an important type of employment services that businesses can understand, as independent contractors are increasingly an integral part of the workforce. Businesses need to be aware of the issues related to compliance with co-employment contracts that may arise from co-employment agreements, in order to avoid legal and financial consequences. The most common cases where violations of labour law are in compliance, for example. B when a hired employee is misclassified and his taxes are not properly withheld. However, common sanctions are also in place for co-employment agreements where the OPP is not the documented employer of registration. In the absence of a clear and written definition of the employer, it is easier for client organizations to slip into procedures and practices that are effectively the responsibility of the IEP and vice versa. An OPP and an organization of clients that overlap on responsibilities are one of the quickest ways to confuse a legal co-employment agreement and open up to non-compliance.