Client Service Agreement (CSA)

Definition

The Client Service Agreement (or Master Service Agreement) is the contract that defines the PEO relationship. Key provisions: scope of co-employment, fee structure (PEPM components), liability allocation (especially federal tax for non-CPEOs), service-level commitments, term and renewal, termination and exit, data export rights.

Most PEO CSAs are heavily provider-favored as drafted. Negotiation room varies — larger clients have more leverage. Three specific terms worth pushing on: cap on annual PEPM escalator (3-5% reasonable), reasonable notice for cancellation (60-90 days), data portability on exit (full export at no cost).

Common questions about Client Service Agreement (CSA)

Related terms

• Professional Employer Organization (PEO) — A company that enters into a co-employment relationship with a client business to handle payroll, benefits, workers comp, and HR compliance.
• Co-employment — A legal arrangement where a PEO and a client business share specific employer responsibilities for the same workforce.
• Auto-renewal clause — A contract provision that automatically extends the agreement unless terminated within a specific window.

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This is one entry from our PEO glossary covering payroll, benefits, workers comp, HR compliance, and PEO mechanics. Browse all terms.