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IRS Stamp of Approval for PEOs

May 19, 2016

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benefitsbclp

IRS Stamp of Approval for PEOs

May 19, 2016

by: benefitsbclp

CertifiedSmall businesses struggling to maintain compliance with the constant flow of regulations impacting human resources and benefits compliance have increasingly turned to professional employer organizations (“PEOs”) to serve as payroll agent or, in some circumstances, co-employer of their employees.  On May 4, 2016, the IRS released temporary and proposed regulations that implement a new voluntary certification program for PEOs.

The application process for becoming certified will open on July 1st.  A revenue procedure further detailing the application process will be released in next several weeks, after which time the IRS will publish lists of certified PEOs (CPEOs).  The IRS welcomes public comment on these regulations – the deadline for submissions is August 4th.

Requirements to become a CPEO appear quite demanding.  A PEO applicant along with the PEO’s “responsible individuals” (including

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PEOs: A remedy for ACA reporting requirements?

January 21, 2016

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benefitsbclp

PEOs: A remedy for ACA reporting requirements?

January 21, 2016

by: benefitsbclp

IRS AheadSigned into law in December 2014 and effective January 1, 2016, the Small Business Efficiency Act (“SBEA”) provides welcome federal statutory recognition of Professional Employer Organizations (“PEOs”). PEOs, who act as “co-employers”, are becoming popular for many small to mid-size businesses struggling to maintain compliance with an ever-increasing volume of regulations impacting human resources and benefits compliance.

In the past, many states individually recognized PEOs through licensing or registration statutes, and there were only a handful of pieces of federal guidance concerning how PEOs should be treated under federal law. The SBEA changes the federal legal landscape by instituting a voluntary certification process for PEOs. By completing this voluntary certification process, a PEO has clear statutory authority to collect and remit taxes on behalf of their clients. Businesses can breathe a sigh of relief

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