Professional Employer Organizations
Description
This industry comprises establishments primarily engaged in providing human resources and human resource management services to client businesses and households. Establishments in this industry operate in a co-employment relationship with client businesses or organizations and are specialized in performing a wide range of human resource and personnel management duties, such as payroll, payroll tax, benefits administration, workers' compensation, unemployment, and human resource administration. Professional employer organizations (PEOs) are responsible for payroll, including withholding and remitting employment-related taxes, for some or all of the employees of their clients, and also serve as the employer of those employees for benefits and related purposes.
Hierarchy
| Code | Title | Description |
|---|---|---|
| 56 | Administrative and Support and Waste Management and Remediation Services 2-digit sector | The Sector as a Whole The Administrative and Support and Waste Management and Remediation Services sector comprises establishments performing routine support activities for the day-to-day operations of other organizations. These essential activities are often undertaken in-house by establishments in many sectors of the economy. The establishments in this sector specialize in one or more of these support activities and provide these services to clients in a variety of industries and, in some cases, to households. Activities performed include: office administration, hiring and placing of personnel, document preparation and similar clerical services, solicitation, collection, security and surveillance services, cleaning, and waste disposal services. The administrative and management activities performed by establishments in this sector are typically on a contract or fee basis. These activities may also be performed by establishments that are part of the company or enterprise. However, establishments involved in administering, overseeing, and managing other establishments of the company or enterprise are classified in Sector 55, Management of Companies and Enterprises. Establishments in Sector 55, Management of Companies and Enterprises, normally undertake the strategic and organizational planning and decision-making role of the company or enterprise. Government establishments engaged in administering, overseeing, and managing governmental programs are classified in Sector 92, Public Administration. |
| 561 | Administrative and Support Services 3-digit subsector | Industries in the Administrative and Support Services subsector group establishments engaged in activities that support the day-to-day operations of other organizations. The processes employed in this sector (e.g., general management, personnel administration, clerical activities, cleaning activities) are often integral parts of the activities of establishments found in all sectors of the economy. The establishments classified in this subsector have specialization in one or more of these activities and can, therefore, provide services to clients in a variety of industries and, in some cases, to households. The individual industries of this subsector are defined on the basis of the particular process that they are engaged in and the particular services they provide. Many of the activities in this subsector are ongoing routine support functions that businesses and organizations perform in-house. However, it is common to contract or purchase services from businesses that specialize in such activities and can, therefore, provide the services more efficiently. The industries in this subsector cannot be viewed as strictly "support." The Travel Arrangement and Reservation Services industry group includes travel agents, tour operators, and providers of other travel arrangement services, such as hotel and restaurant reservations and arranging the purchase of tickets, serving many types of clients, including individual consumers. This group was placed in this subsector because the services are often of the "support" nature (e.g., travel arrangement) to businesses and other organizations that purchase such services. The administrative and management activities performed by establishments in this sector are typically on a contract or fee basis. These activities may also be performed by establishments that are part of the company or enterprise. However, establishments involved in administering, overseeing, and managing other establishments of the company or enterprise are classified in Sector 55, Management of Companies and Enterprises. Establishments in Sector 55, Management of Companies and Enterprises, normally undertake the strategic and organizational planning and decision-making role of the company or enterprise. Government establishments engaged in administering, overseeing, and managing governmental programs are classified in Sector 92, Public Administration. |
| 5613 | Employment Services 4-digit industry group | This industry group comprises establishments primarily engaged in one of the following: (1) listing employment vacancies and referring or placing applicants for employment; (2) providing executive search, recruitment, and placement services; (3) supplying workers to clients' businesses for limited periods of time to supplement the working force of the client; or (4) providing human resources and human resource management services to client businesses and households. |
| 56133 | Professional Employer Organizations 5-digit NAICS industry | See industry description for 561330. |
| 561330 | Professional Employer Organizations 6-digit U.S. detail | This industry comprises establishments primarily engaged in providing human resources and human resource management services to client businesses and households. Establishments in this industry operate in a co-employment relationship with client businesses or organizations and are specialized in performing a wide range of human resource and personnel management duties, such as payroll, payroll tax, benefits administration, workers' compensation, unemployment, and human resource administration. Professional employer organizations (PEOs) are responsible for payroll, including withholding and remitting employment-related taxes, for some or all of the employees of their clients, and also serve as the employer of those employees for benefits and related purposes. |
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Classification References
- 01Supplying their own employees for limited periods of time to supplement the working force of a client's business--are classified in Industry 561320, Temporary Help Services; and
- 02Listing employment vacancies and referring or placing applicants for employment--are classified in U.S. Industry 561311, Employment Placement Agencies.
Index Items
Co-employment staffing services
Employee leasing services
Labor leasing services
PEO (professional employer organizations)
Professional employer organizations (PEO)
Staff leasing services
How Item Can Help
Optimizes inventory management and warehouse operations for client payroll processing centers, reducing stockouts and improving order fulfillment rates across multiple client locations.
Provides actionable insights into payroll cycle performance and compliance risks, enabling businesses to identify inefficiencies and forecast resource requirements more accurately.
Streamlines the logistics network for transporting materials to and from payroll centers, lowering transportation costs and enhancing delivery reliability for distributed operations.
External Resources
Census.gov NAICS Detail
Official US Census Bureau definition and scope for NAICS 561330.
National Association of Professional Employer Organizations (NAPEO)
The primary trade association representing PEOs across North America, offering industry news, certifications, and advocacy.
Small Business Administration
A US government directory that lists the definition and requirements for NAICS code 561330 in official procurement contexts.
Professional Employer Organizations Association
A global professional association dedicated to the PEO industry, providing resources and networking for employers and service providers.
