ALEXANDRIA, Va., Dec. 16, 2014 /PRNewswire-USNewswire/ — The National Association of Professional Employer Organizations (NAPEO) tonight hailed the passage of legislation defining professional employer organizations (PEOs) in the federal tax code and creating a voluntary certification program for PEOs within the IRS. PEOs provide comprehensive HR, benefits, tax administration, and compliance services for small and mid-size businesses.
“PEOs play a key role in helping small businesses grow and thrive, and now Congress has recognized and codified a key element of that role so that even more small businesses can benefit from the services and expertise PEOs provide,” said NAPEO President and CEO Pat Cleary. “The economic data proves that small businesses using a PEO grow faster, have lower employee turnover, and are much less likely to go out of business. We are thrilled that Congress has now passed this legislation to formally recognize and certify PEOs so that small business owners have the assurance they need to let a PEO handle employment tax issues along with back office administrative and HR tasks while they focus on running a successful business.”