California PEO Services
from Modern HR, Inc.

Modern HR, Inc. is a professional employer organization (PEO) based in Los Angeles. It serves California employers. Through the PEO model, Modern HR manages payroll, employee benefits, workers' compensation, and HR support for its clients. The client stays the employer and keeps control of all business operations. Most companies choose a PEO when their internal team cannot manage California HR compliance, benefits, and payroll at the same time.

What is a professional employer organization (PEO)?

A professional employer organization (PEO) is a company that manages HR operations for other businesses. The PEO handles payroll, tax filing, benefits administration, workers' compensation, and HR compliance. The client stays the employer. The client keeps control of all business operations.

The PEO is Modern HR's most-used service model. Through the PEO, clients get access to insurance products that cost less than buying them directly. Clients are covered under Modern HR's Employment Practices Liability Insurance (EPLI). A dedicated Modern HR team manages labor-law compliance, training, payroll, benefits, safety, and recruiting.

Who a California PEO is for

A California PEO is for business owners who need full HR support without building an internal HR department. It is useful for employers who must manage California wage-and-hour rules, benefits, workers' compensation, and recruiting at the same time.

Modern HR works with companies in many industries across California. If payroll, HR policy, claims, and hiring take time away from your core business, the PEO model may be the right solution. If you want to keep your own benefits and workers' compensation policies, the Human Resources Partnering (HRP) model is available. See the Services page for details.

What Modern HR's PEO includes

  • Payroll processing and tax administration
  • Employee benefits administration, including ACA support
  • Workers' compensation and related insurance access
  • Employment Practices Liability Insurance (EPLI) coverage
  • Labor-law compliance guidance
  • Recruiting support
  • Training
  • Safety and risk management support
  • Access to the client portal (iConnect) for managers and employees

The PEO is a bundled model. If you need selected HR functions only, and not payroll, see the HRO model on the Services page.

PEO vs HRP vs HRO vs in-house HR

Modern HR offers three service models. PEO is the bundled model. Human Resources Partnering (HRP) is the un-bundled model — the client keeps their own benefits and workers' compensation coverage. Human Resources Outsourcing (HRO) provides selected HR support without payroll. See the Services page for more details.

← Scroll to see all columns →
PEO (Model A) HRP (Model B) HRO (Model C) In-house only
Who is the employer Client stays the employer Client stays the employer Client stays the employer Client
Payroll Included Included Client keeps payroll Client
Benefits and workers' comp Bundled via PEO Client keeps own policies As agreed Client
HR team Modern HR team across all HR functions Modern HR team, customized Dedicated or on-site expert for selected functions Hire internally
EPLI coverage Yes — Modern HR umbrella policy Not included in HRP Not included in HRO Client's own
Best when You want one bundled HR and insurance solution You want HR support but will keep your own insurance You need HR support without handing over payroll You already have a full HR team

Why California employers use a PEO

California employment rules are complex. Wage statements, overtime, leave, workplace posters, and benefits requirements change regularly. A part-time HR employee cannot manage all of these reliably. A PEO puts payroll, compliance, and benefits in one place. The business owner does not need to act as the HR department.

Modern HR, Inc. is based in Los Angeles. It works with employers across California. This page is for companies that are choosing a PEO in California. It is not a national directory or a software comparison.

California PEO FAQs

What is a PEO in California?
A PEO in California is a professional employer organization. It manages payroll, benefits, workers' compensation, and HR compliance for the client business. The client stays the employer.
Does a PEO replace the employer?
No. The client stays the employer. The client keeps control of all business operations. Modern HR provides the HR programs and infrastructure.
How is a PEO different from HR outsourcing?
A PEO is a bundled model. It includes payroll and access to insurance programs. Human Resources Outsourcing (HRO) is a selected-function model. In HRO, Modern HR manages specific HR tasks but not payroll. Human Resources Partnering (HRP) is the un-bundled model. In HRP, the client keeps their own benefits and workers' compensation policies.
Who should consider Modern HR's PEO?
The PEO is for California business owners who need payroll, benefits, workers' compensation, and HR compliance support. It is for owners who do not want to build a full internal HR department.
How do we start?
Contact Modern HR at modernhr.com/contact or call 877-842-4988. Give your headcount and California locations. Tell Modern HR if you want the bundled PEO model or an un-bundled HRP or HRO model.

Talk with Modern HR about a California PEO

Call 877-842-4988 or send a note on the contact page.

Contact Modern HR See all service models