Paychex Among the First PEOs to Receive New IRS Certification

ROCHESTER, N.Y., June 2, 2017

The IRS implemented the certified PEO program January 1, 2017, and while a majority of states previously had individual programs for licensing or registering PEOs, this is the first initiative to formally specify who assumes liability for Federal taxes in the relationship between PEO service providers and their clients.

Paychex was well-positioned to be an early recipient of certification because it already assumed Federal and state tax liability for its PEO clients prior to the SBEA and is accredited by ESAC (Employer Services Assurance Corporation).

"With more than 20 years in the PEO industry as a trusted partner to small and mid-size businesses, this certification reaffirms Paychex as a leading provider of PEO services in the U.S.," said president and CEO Martin Mucci. "It's our mission to support our clients' human resource and insurance needs by minimizing time-consuming and often complicated administrative tasks so they can focus on running their businesses."

An added benefit of the SBEA, clients of certified PEOs can now take advantage of tax credits they may not have been eligible for under the traditional PEO model. Paychex Tax Credit Services help business owners capitalize on these new opportunities, offering comprehensive services to assist them in claiming the tax credits they deserve.

Paychex is positioned to leverage the certification to help strengthen the PEO model and maximize the benefits it offers clients. Existing Paychex PEO clients interested in learning more about the new certified offering should contact their dedicated human resource generalist.