Help with pattern for hat

I’m making this hat for my dd.

My question has to do with Round 3 which reads :

Round 3: K1, p1, yo, s1-k1-psso, p1 repeat around

OK, when you do the yo, do you bring the yarn around front and s1 or hold it to the back and do the s1? I hope that makes sense. I’ve tried it both ways and it "feels’ like I should be holding the yarn in front as I s1, but I’m really just not sure. TIA!!!

You can do it either way - hold in front, slip the next stitch then when you knit the stitch after that, it makes the YO. But this way tends to get the YO crossed up with the slip st and you end up passing the YO instead. I prefer to wrap the yarn all the way to the back, slip the st and knit the next one and the YO stays in place better.

Woot! Perfect answer. Thanks so much!!! I think I was doing my yo wrong to begin with, so that got me in the wrong place. Now holding it in the back makes much more sense.