Scope of Services
Detail covered HR functions, payroll processing cycles, benefits administration, hiring/onboarding duties, and any excluded services that remain the client's obligation.
A precise agreement allocates liability, avoids payroll and tax disputes, protects employee benefits continuity, and defines service levels and transition mechanics. Clear terms reduce regulatory risk, simplify audits, and provide a documented basis for resolving misunderstandings between the PEO and client employer.
Several parties are involved in creating, reviewing, and signing a PEO Services Agreement depending on business size and complexity.
Final signatures typically come from authorized executives on both sides after legal and benefits review; countersignature routing should be documented.
The PEO's authorized officer or general counsel signs to bind the provider; this person confirms insurance coverages, indemnities, and operational commitments on behalf of the PEO.
An officer, owner, or delegated HR director of the client company signs to accept service terms, fee schedules, and tax reporting allocations; ensure corporate authorization is documented.
Detail covered HR functions, payroll processing cycles, benefits administration, hiring/onboarding duties, and any excluded services that remain the client's obligation.
Specify who files and pays federal, state, and local payroll taxes, timing, backup withholding obligations, and procedures for tax notices and audits.
Describe plan administration, eligibility rules, employer contribution levels, COBRA handling, and how premium changes are communicated and applied.
State workers' compensation coverage details, premium billing method, claims management responsibilities, and how experience modifiers are applied to client accounts.
Allocate responsibility for payroll errors, tax penalties, employee claims, and third-party liabilities; include limits on consequential damages where permitted by law.
Define notice periods, final accounting, data transfer formats, and responsibilities for final wage reporting and benefit continuation upon contract end.
| Workflow Field | Recommended Setting |
|---|---|
| Signing Order | PEO first, then client signatory; sequential routing |
| Authentication | Email plus SMS code for higher assurance |
| Reminder Schedule | Auto-reminders at 3 and 7 days |
| Storage Location | Encrypted document repository with access controls |
Choose a signing platform that integrates with payroll, HRIS, and document storage systems used by both parties.
| signNow | DocuSign | Adobe Sign | PandaDoc | HelloSign | |
|---|---|---|---|---|---|
| Starting Price | $8/user/mo | $15/user/mo | $14/user/mo | $19/user/mo | $15/user/mo |
| Free Trial | 7-day trial | Varies by plan | Varies by plan | Yes, limited | Yes, limited |
| Bulk Send | Yes | Yes | Yes | Yes | No |
| Audit Trail | Yes | Yes | Yes | Yes | Yes |
| HIPAA Compliant | Yes | Yes | Yes | No | No |
| Envelope Cap | No envelope cap | 100 envelopes/user/year | Varies | Varies | Varies |