A Professional Employer Organization (PEO) is a full-service HR outsourcing solution that some small businesses use to help manage payroll, maintain workers’ compensation insurance, administer employee benefits and to outsource other human resource tasks. Pricing varies; some charge per employee and others as a percentage of payroll.  If you decide to use a PEO, it’s a good idea to choose a PEO that is certified by the IRS. This is a voluntary certification that the IRS grants to PEOs that become certified as a Certified Professional Employer Organization (CPEO). Becoming and remaining certified as a CPEO means that a PEO has met specific requirements related to background, experience, business location, financial reporting, tax compliance, and bonding requirements. The IRS can’t help you choose a PEO but it can help you narrow your choices.