WOODBRIDGE, N.J., June 15, 2017 /PRNewswire/ -- On June 1, 2017, Extensis was named by the Internal Revenue Service* (IRS) as one of the first-ever PEOs to meet the requirements to become a Certified Professional Employer Organization (CPEO), effective January 1, 2017. IRS certification gives our brokers, clients, and vendors confidence, in combination with our Employer Services Assurance Corporation (ESAC) accreditation, that we are one of a select group of PEOs who have met the highest standards set by the U.S. government and the PEO industry's financial assurance program.
When it became law in 2014, the Small Business Efficiency Act (SBEA) became a historic milestone for the PEO industry by providing federal recognition of PEO services. It required the IRS to create a voluntary certification program for PEOs. To qualify for IRS certification, PEOs had to meet specific tax compliance, background, experience, business location, independent financial review reporting, bonding, and other requirements. To preserve status as a CPEO, PEO's must maintain specific records and provide the IRS with ongoing independent financial review reporting. They're also required to post a bond each year guaranteeing payment of their federal employment tax liabilities.
Under the SBEA, CPEOs can offer businesses federal regulatory certainty not available through non-certified PEOs. The SBEA created a federal regulatory framework for the payment of wages to worksite employees and the remittance and reporting of payroll taxes on wages paid by a CPEO using its Employer Identification Number. A CPEO can also give businesses freedom to choose the best time of year to start PEO service, such as on the anniversary of their health insurance plan, without double taxation of FICA and FUTA. CPEO clients also have continued eligibility for specified federal tax credits.
"It took significant effort to complete the application process and to do it within the initial submission timeline," said Don Abernathy, CFO, Extensis. "We sought to become one of the first certified PEOs and are honored to receive this designation. It enables us to give our clients the highest level of PEO service."
*The IRS does not endorse any particular certified professional employer organization. For more information on certified professional employer organizations go to www.IRS.gov.
Extensis promises to simplify HR. The company is one of the largest Professional Employment Organizations (PEOs) in the U.S. and the fastest growing PEO in the Northeast, delivers on this promise every day. Our comprehensive portfolio includes personalized services for HR, benefit plans, payroll and taxes, employer risk, compliance, and employee management. A broker-focused PEO, Extensis is one of five percent of PEOs accredited by the Employer Services Assurance Corporation (ESAC), the nationally recognized gold standard for PEO reliability and financial assurance. Extensis is one of the first PEOs to be designated a Certified Professional Employer Organization (CPEO) by the IRS.
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SOURCE Extensis Group