ALEXANDRIA, Va., July 8, 2015 /PRNewswire-USNewswire/ -- The National Association of Professional Employer Organizations (NAPEO) today hailed the enactment of a New Hampshire bill that will allow small business clients of professional employer organizations (PEOs) to take advantage of the state's business enterprise tax (BET) credits. It was signed into law yesterday by Governor Maggie Hassan (D).
"This legislation is a tremendous victory for New Hampshire businesses because it allows them to reap both the benefits of working with a PEO and the benefits of the state's BET credit," said NAPEO President & CEO Pat Cleary. "We truly commend Governor Hassan, Senate President Pro Tempore Sharon Carson (R-Londonberry), Senate Majority Leader Jeb Bradley (R-Wolfeboro), and Rep. Jackie Cilley (D-Stafford) for working together in a bipartisan manner to get this done."
Under current law, all businesses in New Hampshire must pay the BET, which is calculated as a percentage of employee payroll. Businesses can then apply the amount paid as a tax credit against business profits. Since PEOs in New Hampshire are considered the employer of record, only they have been able to take the credit against profits, while the companies they serve have been unable to do so. PEOs work with more than 250 small and mid-sized businesses in the state.
"From the beginning, this has been a fairness issue. The tax credits were intended to help businesses in New Hampshire grow and thrive, and those growing businesses shouldn't be penalized for partnering with a PEO for payroll, benefits and other HR services," said Bob Burbidge, chairman of NAPEO's New England Leadership Council and CEO of Genesis HR Solutions. "We're thrilled that this wrong has been righted."
The National Association of Professional Employer Organizations (NAPEO) is The Voice of the PEO Industry™ and represents about 85 percent of the industry's estimated $92 billion in gross revenues. NAPEO has 300 PEO members, ranging from start-ups to large publicly held companies with years of success in the industry, as well as some 200 service provider members. PEOs provide payroll, benefits, and other HR services to small and mid-sized businesses. Approximately 250,000 businesses and more than 2.5 million people are part of PEO arrangements. Please visit our website at www.napeo.org.
SOURCE National Association of Professional Employer Organizations (NAPEO)