Professional Employers Organizers FAQ’s

The information provided to you is intended for educational purposes only. In no event shall AAOMS be liable for any decision made or action taken or not taken by you or anyone else in reliance on the information provided. For legal or other professional advice, you need to consult your own professional advisers.

Pertaining to the contract with the PEO, can you get out of a contract with them? Steps to do so?


The contract with a PEO must be a written contract signed by both parties. There should be language in the contract that details the procedure and amount of time required to terminate the contract, by either party.

Is the Doctor an employee of the PEO?


If the practice is incorporated as a "C" or "Subchapter-S" then yes, the doctor (shareholder), as an employee of the corporation, would also be paid through the PEO. If the practice is not incorporated but functions as a limited liability company, partnership, or sole-proprietorship, then the owner of the practice would not be paid through the PEO.

Does joining a PEO influence your medical/dental malpractice insurance?


Joining a PEO should have no affect on medical malpractice insurance.

Does joining a PEO affect your accreditation status and/or eligibility?


Joining a PEO should have no affect on accreditation status and/or eligibility.

Who has the right to hire/fire employees?


The practice retains the right to hire and fire, but may require a formal process as agreed upon in the written contract between the parties.

Who is responsible for employment taxes?


The PEO is responsible for the collection and payment of employment taxes.