Final IRS regulations clarified PEOs can offer eligible employer-sponsored coverage on behalf of an employer.  In the introductory statement to the final regulations  it unambiguously states that organizations such as PEOs can offer coverage under an eligible employer-sponsored plan on behalf of an employer, yet not be viewed as the employer by reason of offering such coverage. This is true for group fully-insured and self-funded health insurance coverage offered on behalf of an employer to an employee.

Excerpts from The National Law Review Posted August 30, 2013
www.natlawreview.com