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Glossary

Terms every PEO Signal page assumes you already understand.

• Co-employment

  Co-employment is the legal doctrine that lets a PEO share statutory employer duties with its client while the client keeps day-to-day direction of the workforce.

• CPEO (Certified PEO)

  A CPEO has satisfied the IRS certification programme establishing that the PEO, not the client, is solely liable for federal employment taxes on wages the PEO pays.

• ESAC accreditation

  ESAC is the independent industry body that accredits PEOs against financial-reporting, ethical, and operational standards and posts a surety bond for accredited members.

• PEPM (per employee per month)

  Per-employee-per-month is the pricing convention most PEOs use to quote a service fee: a flat monthly charge for each covered employee, invoiced with payroll.

• Non-subscriber (Texas)

  A non-subscriber is a Texas employer that has chosen not to carry statutory workers' compensation coverage, forgoing the exclusive-remedy tort defence in exchange for benefit-plan flexibility.

• ABC test

  The ABC test is a three-prong legal framework used in several US states to determine whether a worker is an employee or an independent contractor, presuming employee status by default.

• EOR (Employer of Record)

  An Employer of Record legally employs a client's workforce in a jurisdiction where the client has no local legal entity, handling statutory contributions and payroll under local labour law.

• Master health plan

  A master health plan is a group health-insurance contract issued to a PEO and extended to eligible worksite employees of participating clients under large-group underwriting terms.