In the late 1990s and early 2000s, stories seemed to abound about professional employer organizations (PEOs) that took companies’ insurance premiums and spent them on lavish trips, homes, and more. The FBI raided offices and cracked down on these “bad actors” and their fake solutions. But the few gave a bad reputation to the many, and industry has rapidly evolved since.

But the question still remains, can you trust a PEO? Those organizations are helping with integral parts of your business and you need to know that your data, money, and your operations are safe. Here are some things to know and look for as you make your PEO decision that will help you identify a partner you can trust.

ESAC Accreditation

The Employer Services Assurance Corporation (ESAC) works with PEOs to accredit their financial activities. ESAC confirms a PEO’s reliability in its business conduct and regulatory compliance through a series of more than 40 financial, ethical, and operational standard reviews.

Quarterly reviews are also conducted to ensure that these financial and ethical standards are being maintained by the PEO.

IRS CPEO Certification

Certified PEO (CPEO) accreditation from the Internal Revenue Service (IRS) includes background, financial, and reporting requirements set by the government. Certification ensures financial protections and tax benefits to clients of a certified PEO that clients of non-certified PEOs do not necessarily have.

Entering into an agreement with a CPEO affects the employment tax liabilities of both the CPEO and its customers, and that is a key piece for businesses to understand.

NAPEO Code of Ethics

In addition, many PEOs are members of the National Association of PEOs (NAPEO) and agree to their Code of Ethics, which reminds them that that they must serve the public and their clients with the utmost professional conduct.

We work hard to identify partners with the utmost standards and professional care as PEO partners. Let us help you find the right one for your business!