Last year, the Internal Revenue Service (IRS) rolled out a new voluntary certification for Professional Employer Organizations (PEOs), called “CPEO,” or the Certified Professional Employer Organization program. This certification program originated as a result of the Small Business Efficiency Act in 2014. Prior to implementation of the CPEO program in 2017, the IRS did not recognize the PEO relationship when it came to federal taxes, and this presented tax challenges for business owners who wanted to enter a partnership with a PEO, or transition from one PEO to another.
PEOs with CPEO status have demonstrated their stability and financial well-being, as well as their ability to meet and maintain strict requirements for financial reporting, tax status, and bonding. Continue reading “Why Your PEO Should Be IRS-Certified”