A human resources department is an important part of employee well-being in any business, no matter how small. HR responsibilities include payroll, benefits, recruiting, firing, and keeping up to date with state and federal tax laws. Any mix-up concerning these problems can cause serious legal problems for your business, as well as major employee dissatisfaction. But small businesses often don't have the budget to handle the nitty-gritty details of HR. Because of this, more and more small businesses are starting to outsource their HR wants. The hr outsourcing companies pool thousands of businesses together. hr outsourcing services generally fall into four categories: PEOs, BPOs, ASPs or e-services. A Professional Employer Organization (PEO) presumes entire responsibility for your company's HR administration. It becomes a co-employer of your company's workers by taking whole legal authority of your employees, including having the final say in recruiti