What is Co-Employment?

A Professional Employer Organization (PEO) shares employer responsibilities and risks with clients through contractual arrangements. By virtue of this contract, the PEO provides services to the client company and establishes and maintains an employment relationship with each of a worksite’s long-term employees. This shared employment relationship is called “co-employment”.

How Does Co-Employment Affect My Business?

As the business owner, you remain responsible for directing and controlling how your workforce performs their normal work duties. The co-employment relationship makes Rampart Advisors legally responsible for certain employer duties associated with hiring, firing, payroll, employment taxes, workplace safety, and unemployment insurance. The Service Agreement between Rampart Advisors and your business will clearly indicate which party is responsible for specific employer functions involved in the co-employment relationship.

Some examples include:

Employment Right/Responsibility	Rampart Advisors	Client	Shared
Direct and supervise employees in their normal work duties
Provide a safe workplace and comply with all safety regulations and directives
Hire, reassign, and discharge employees
Direct and control employees in HR/employment law matters
Payment of wages and withholding of employment taxes
Remittance of payroll taxes and filing of reports with federal and state authorities
Workers’ Compensation coverage
Unemployment claims
Employee benefit programs

Rampart Advisors manages employment liability exposure through this co-employment arrangement by:

• Monitoring and requiring compliance with employment laws
• Developing policies and procedures that apply to worksite employees
• Supervising and disciplining worksite employees
• Exercising discretion related to hiring of new employees
• Terminating worksite employees who do not comply with requirements established by Rampart Advisors