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A PEO can be incredibly helpful to small- and medium-sized companies. Learn more about how a PEO can benefit your small business, and download our free ebook on the advantages of a PEO. What Is a PEO? The acronym PEO stands for Professional Employer Organization. Professional Employer Organizations work with small businesses to help them manage payroll, certain human resources functions, access to benefits, and other employer-related administrative functions necessary to running a business. This allows you to focus on what matters most: growing your business.