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business entities contract with
professional employer organizations (PEOs)
to handle the personnel and benefits
aspects of the business. This may include
completion and retention of Forms I-9.
Where the business entity and the PEO are
"co employers," one Form I-9
need be completed between the co-employers
for each employee who was simultaneously
hired by the co-employers. A business
entity and PEO will be deemed a
"co-employer" if, among other
things, an employer/employee relationship
is said to exist between the business
entity and PEO on the one hand, and the
individual on the other, even though the
employee is only performing one set of
services for both co-employers.
Therefore,
the authority to hire or terminate
employment would have to be in the hands
of both the business entity and the PEO.
Since both entities are employing the
individual, however, both entities remain
equally responsible for meeting the Form
I-9 requirements and equally liable for
any failures to meet those requirements.
Accordingly, the employer is fully
responsible for errors, omissions, and
deficiencies in the PEO's processing.
For more information, please contact us
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