One way of determining whether a business is small, for purposes of federal contracting and small business contracting programs, is by looking at the number of employees the business and its affiliates have. In addition, questions regarding who a business' employees are come up in the context of compliance with labor and employment laws/regulations. We are frequently asked whether federal contractors can utilize a Professional Employer Organization (PEO) and if so, employees under a PEO arrangement are considered employees of the business.
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