Do the business owners lose control of their businesses ?

No. The client retains ownership of the company and control over its operations.

As co-employers, the PEO and client will contractually share or allocate employer responsibilities and liabilities. The PEO will generally only assume responsibilities and liabilities associated with a "general" employer for purposes of administration, payroll, taxes and benefits.

The client will continue to have responsibility for worksite safety and compliance.

The PEO will be responsible for payroll and employment taxes, will maintain employee records and reserves a right to hire and fire. Because the PEO also may be responsible for workers' compensation, many PEOs also focus on and improve safety and compliance.

In general terms, the PEO will focus on employment-related issues and the client will be responsible for the actual business operations.