NAICS 561330 - Professional Employer Organizations

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What is NAICS 561330

NAICS code 561330 covers Professional Employer Organizations (PEOs), which specialize in providing comprehensive human resource and personnel management services to client businesses and households. These organizations operate under a co-employment model, sharing employer responsibilities with their clients to manage critical HR functions such as payroll, benefits administration, workers' compensation, and compliance with employment-related tax requirements. PEOs help businesses streamline HR operations, reduce administrative burdens, and mitigate risks associated with employment law and regulatory compliance. Government agencies contract with PEOs to efficiently manage their workforce administration, ensure compliance with complex employment regulations, and leverage the expertise of specialized HR service providers.

Industry Classification for NAICS 561330

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.

Breakdown for NAICS 561330

  • Provides comprehensive HR and personnel management services through co-employment arrangements.
  • Manages payroll, payroll tax withholding, and employment-related tax remittance for client employees.
  • Handles benefits administration including health insurance, retirement plans, and workers' compensation.
  • Operates under firm-fixed-price, cost-reimbursement, and time-and-materials government contracts.
  • Supports federal, state, and local agencies with workforce compliance and risk management.
  • Typical contract values range widely based on agency size and service scope.

Included Activities for NAICS 561330

  • Processing payroll and employment tax withholding for client employees.
  • Administering employee benefits such as health insurance and retirement plans.
  • Managing workers' compensation and unemployment insurance claims.
  • Ensuring compliance with federal, state, and local employment regulations.
  • Providing human resource administration and employee relations support.
  • Handling employee onboarding, offboarding, and personnel record maintenance.
  • Offering risk management and workplace safety consultation.
  • Coordinating employee training and development programs.

Business Types for NAICS 561330

  • Professional Employer Organizations (PEOs)
  • Human Resource Management Service Providers
  • Payroll Service Companies
  • Employee Leasing Firms
  • Benefits Administration Specialists
  • Risk Management and Compliance Consultants

Subcategories for NAICS 561330

  • Co-employment staffing services
  • Employee leasing services
  • Labor leasing services
  • PEO (professional employer organizations)
  • Professional employer organizations (PEO)
  • Staff leasing services

Government Buyers for NAICS 561330

Federal, state, and local government agencies frequently procure services from PEOs to support their human capital management needs. Agencies with large or dispersed workforces, including departments of transportation, health, and public safety, contract with PEOs to ensure timely payroll processing, benefits administration, and regulatory compliance. These agencies value PEOs for their ability to reduce administrative overhead, improve employee services, and manage risks associated with workers' compensation and unemployment insurance. Additionally, government entities may engage PEOs during periods of workforce expansion or restructuring to ensure seamless HR operations.

Contract Types & Procurement for NAICS 561330

Contracts for NAICS 561330 services typically include firm-fixed-price, cost-reimbursement, and time-and-materials agreements, depending on the scope and complexity of the engagement. Procurement methods often involve competitive bidding, requests for proposals (RFPs), and small business set-asides where applicable. Contract values can range from modest annual service agreements to multi-million-dollar, multi-year contracts supporting large government agencies with extensive workforce management needs. Performance-based contracts are also common, emphasizing service quality, compliance standards, and client satisfaction metrics.

Details for NAICS 561330

Explore the hierarchy and related codes for this industry

NAICS Code Industry Title
561 Administrative and Support Services
5611 Office Administrative Services
56111 Office Administrative Services
561110 Office Administrative Services
5612 Facilities Support Services
56121 Facilities Support Services
561210 Facilities Support Services
5613 Employment Services
56131 Employment Placement Agencies and Executive Search Services
561311 Employment Placement Agencies
561312 Executive Search Services
56132 Temporary Help Services
561320 Temporary Help Services
56133 Professional Employer Organizations
561330 Current Professional Employer Organizations
5614 Business Support Services
56141 Document Preparation Services
561410 Document Preparation Services
56142 Telephone Call Centers
561421 Telephone Answering Services
561422 Telemarketing Bureaus and Other Contact Centers
56143 Business Service Centers
561431 Private Mail Centers
561439 Other Business Service Centers (including Copy Shops)
56144 Collection Agencies
561440 Collection Agencies
56145 Credit Bureaus
561450 Credit Bureaus
56149 Other Business Support Services
561491 Repossession Services
561492 Court Reporting and Stenotype Services
561499 All Other Business Support Services
5615 Travel Arrangement and Reservation Services
56151 Travel Agencies
561510 Travel Agencies
56152 Tour Operators
561520 Tour Operators
56159 Other Travel Arrangement and Reservation Services
561591 Convention and Visitors Bureaus
561599 All Other Travel Arrangement and Reservation Services
5616 Investigation and Security Services
56161 Investigation, Guard, and Armored Car Services
561611 Investigation and Personal Background Check Services
561612 Security Guards and Patrol Services
561613 Armored Car Services
56162 Security Systems Services
561621 Security Systems Services (except Locksmiths)
561622 Locksmiths
5617 Services to Buildings and Dwellings
56171 Exterminating and Pest Control Services
561710 Exterminating and Pest Control Services
56172 Janitorial Services
561720 Janitorial Services
56173 Landscaping Services
561730 Landscaping Services
56174 Carpet and Upholstery Cleaning Services
561740 Carpet and Upholstery Cleaning Services
56179 Other Services to Buildings and Dwellings
561790 Other Services to Buildings and Dwellings
5619 Other Support Services
56191 Packaging and Labeling Services
561910 Packaging and Labeling Services
56192 Convention and Trade Show Organizers
561920 Convention and Trade Show Organizers
56199 All Other Support Services
561990 All Other Support Services
562 Waste Management and Remediation Services
5621 Waste Collection
56211 Waste Collection
562111 Solid Waste Collection
562112 Hazardous Waste Collection
562119 Other Waste Collection
5622 Waste Treatment and Disposal
56221 Waste Treatment and Disposal
562211 Hazardous Waste Treatment and Disposal
562212 Solid Waste Landfill
562213 Solid Waste Combustors and Incinerators
562219 Other Nonhazardous Waste Treatment and Disposal
5629 Remediation and Other Waste Management Services
56291 Remediation Services
562910 Remediation Services
56292 Materials Recovery Facilities
562920 Materials Recovery Facilities
56299 All Other Waste Management Services
562991 Septic Tank and Related Services
562998 All Other Miscellaneous Waste Management Services

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