Analysis
NAICS 561330 is the 2022 national industry for professional employer organizations, part of 56133 (Professional Employer Organizations). Census lists 6 example activities under it in the official index.
Between 2018 and 2023 the number of establishments grew 16% and employment rose 26%. The 2018 count used NAICS 2017, so part of a large move can come from codes being redefined rather than from businesses opening or closing.
County Business Patterns counts 4,343 US establishments in this code in 2023, employing 3,777,023 people at an average annual payroll of $72,164 per employee (55th percentile of national industries). 26% of the establishments have fewer than five employees, which is close to the national mix.
Its index entries, the activities Census uses to assign businesses to this code, include co-employment staffing services, employee leasing services, labor leasing services and PEO (professional employer organizations), among 6 in all.
For example, supplying their own employees for limited periods of time to supplement the working force of a client's business are classified in 561320 (Temporary Help Services) instead.
Census lists 2 related activities that belong elsewhere, most often in 561320 and 561311. Businesses that do several things are classified by their primary activity, the one that generates the most value, so check those boundaries before settling on this code.
Official definition
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.
Source: US Census Bureau, NAICS 2022 Manual.
Not this code if…
Index entries (6)
- Co-employment staffing services
- Employee leasing services
- Labor leasing services
- PEO (professional employer organizations)
- Professional employer organizations (PEO)
- Staff leasing services