Press Release (ePRNews.com) - WESTCHESTER, Ill. - Jul 13, 2017 - Tandem HR, one of the largest privately held Professional Employer Organizations (PEO) or HR outsourcing firms in the Midwest, is one of a few elite PEOs to earn a new Certified PEO (CPEO) designation from the Internal Revenue Service. This new certification is a result of the Small Business Efficiency Act, created to provide federally regulated structure in the client-PEO relationship. The act outlines how the CPEO will pay wages to their client’s worksite employees, as well as the liability for reporting and payment of the federal payroll taxes by the CPEOs themselves.
While some PEOs, like Tandem HR, are accredited through the Employer Services Assurance Corporation (ESAC), the CPEO certification will give additional financial assurance to CPEO clients. The CPEOs have undergone and will continually comply with a rigorous audit process by the IRS.
“This is a big day for our industry,” says Bruce Leon, who founded Tandem HR in 1998 when he recognized the need for comprehensive and flexible HR solutions among small and mid-sized business owners. “This certification defines the CPEO/client relationship, shifts the burden of liability for federal tax payments onto the certified PEO and sets high standards that employers should look for when considering a PEO to partner with.”
Where typically businesses were penalized by paying double FICA and FUTA taxes if they partnered with a PEO in the middle of the year, the government now recognizes this relationship as a benefit for businesses and will not restart the tax wage base for entities partnering with a CPEO. The SBEA also outlines other benefits for CPEO clients, including the clear authority to take advantage of certain federal tax credits that were previously debated under a PEO relationship.
With these hurdles out of the way, businesses will find it easier to take advantage of the exceptional value and opportunities offered in the CPEO relationship. CPEOs offer small and mid-sized businesses a flexible, cost effective HR solution to align with their business strategy. By pooling various groups together, the PEO is able to offer its client employees Fortune 500 style benefits so they can compete for talent in the marketplace. In a time where the employee experience and retention are hot topics, businesses are finding huge benefits to PEO partnership.
Tandem HR is a PEO located in Westchester, IL working with hundreds of businesses in the Chicago and surrounding areas. Tandem HR is excited to add the CPEO certification to its list of awards and designations including Crain’s Fast 50 Growing Companies, Crain’s Largest Privately Held Companies and Inc. 5000. The IRS does not endorse any particular certified professional employer organization. For more information on Tandem HR or to find out how a CPEO can benefit your business, visit www.TandemHR.com or call 630-928-0510 today! For more information on this certification, visit www.IRS.gov. # Source :