Which of the following employer tasks does a Professional Employer Organization normally handle?

A Professional Employer Organization (PEO) primarily handles administration functions for businesses. This can include a variety of tasks such as payroll processing, employee benefits administration, and human resources management. By outsourcing these administration functions to a PEO, companies can focus on their core business activities while ensuring compliance with employment regulations and streamlining HR operations.

The role of a PEO is to serve as a co-employer, which allows the PEO to take on certain liabilities and responsibilities associated with employment, providing businesses with a more efficient way to manage their workforce. This administrative support can also extend to handling issues related to worker's compensation and providing access to better employee benefits due to the pooled resources of multiple businesses under the PEO.

In contrast, claims processing, risk assessment, and policy underwriting are typically functions carried out by insurance companies rather than a PEO. Claims processing is related to handling insurance claims, risk assessment involves evaluating potential liabilities, and policy underwriting is concerned with determining the terms under which insurance coverage is offered. These tasks lie outside the purview of a PEO's responsibilities.