Professional employer organization (PEO)
A professional employer organization (PEO) is an external service provider that partners with small and mid-sized businesses to manage critical human resource functions, such as payroll processing, benefits administration, compliance support, and employee management. This partnership model is commonly referred to as co-employment. Understanding the Role of a PEO Under a co-employment arrangement, the PEO […]
Pre-tax deductions
Pre-tax deductions are amounts subtracted from an employee’s gross earnings before taxes are applied. These deductions typically cover elective benefits, such as health insurance or flexible spending accounts, that the employee chooses to participate in. Because taxes are calculated after these deductions are applied, they reduce taxable income, resulting in more take-home pay. How Do […]
Performance review
A performance review, also known as a performance evaluation or appraisal, is a structured process where a manager assesses an employee’s work, celebrates successes, and identifies areas for development. These reviews are a core component of an organization’s broader performance management strategy, typically involving a discussion between the employee and their supervisor. What Does a […]
Per diem
Per diem is a daily allowance employers provide to cover travel-related expenses incurred by employees during business trips. The term comes from Latin and means “per day,” reflecting its purpose, to reimburse employees for everyday costs like lodging and meals while traveling for work. How Per Diem Works When employees travel for work purposes, outside […]