IRS Approves 84 PEO's for CPEO Status

IRS Approves 84 PEO’s for CPEO Status

Posted June 8, 2017

Big news this month! The IRS has announced approval of 84 PEO’s for Certified Professional Employer Organization (CPEO) status. The application process began last summer, but this month the IRS has approved the first round of CPEO’s. The IRS has not yet released the names of the PEO’s which were granted CPEO status, but several PEO’s have issued press releases (see below) communicating they have received this IRS designation. Link to IRS notification

Two Reasons Why This Information is Important to Employers & Brokers:

This now allows an employer to leave a CPEO mid-year without the employer double paying any payroll taxes. The double payment of payroll taxes is the number one reason employers who want to leave a PEO don’t leave.
This now allows an employer to leave a CPEO mid-year and the employees only receive one W2, not two W2’s.

Now that this new legislation has taken effect, it should be easier for brokers to help employers move away from CPEO’s mid-year.

Here are the names of PEO’s who have issued press releases announcing their CPEO designation from the IRS:

ADP TotalSource
Insperity
G&A Partners
Engage PEO
SWBC PEO
Avitus Group
Alcott HR

I hope this information is helpful. Good selling!

Scott Maichel

I’ve been in the Payroll and HR business since 1992 and currently I'm the Managing Partner with AmCheck San Diego, a local boutique Payroll-HR services firm focused on helping small to mid-sized employers. Since co-founding the AmCheck San Diego office in 2006 I have worked closely with hundreds of employers in the San Diego community. My experience has enabled me to develop a unique service offering for employers that help them minimize the transactional aspects of their job so they can focus on the tasks they enjoy – like leaving the office at 5 o’clock occasionally! I pioneered several unique offerings in my industry like the AmCheck employment attorney hotline, the PEO transparency analysis and the AmCheck college scholarship program - which helps our clients attract and retain good employees. I’m an advocate for the San Diego broker community. I’ve been a Board member of the San Diego Association of Health Underwriters (SDAHU) since 2012, I served as past President and currently serve as the VP of Membership. Since 2006, I’ve been a frequent public speaker and educator for the broker community in helping them level the playing field when competing against PEO’s or payroll companies that offer work comp and benefits. I have traveled to Washington D.C. on 3 separate occasions to lobby on behalf of benefit brokers to increase broker commissions and make the ACA easier for brokers and employers. My personal interests include supporting several Autism focused organizations including; Autism Speaks, The Autism Walk, The Music Therapy Center of California and Banding Together. I enjoy running, architecture and I’m a huge Chicago Cubs fan.