An Alternate Employer Organization (AEO) is a human resource services firm targeting small and medium-sized business (typically less than 250 employees).
PEOs proposed to take on the responsibility of performing a wide array of administrative tasks for businesses and managing state and federal regulatory compliance.
The PEO model is still beneficial and heavily utilized by many businesses, though some grapple with transparency-related obstacles with respect to federal payroll tax obligations.
[3] Recognizing this dynamic, some client-employers have advocated for increased transparency and have voiced a preference to be included in any IRS-related communications should tax issues arise.
[3] Entities choosing this option will still be licensed by the Ohio Bureau of Workers’ Compensation, but will be identified as Alternate Employer Organizations under state law.