ROCHESTER, N.Y., June 2, 2017 /PRNewswire/ -- Paychex, Inc., a leading provider of integrated human capital management solutions for payroll, HR, retirement, and insurance services, today announced that the IRS has certified subsidiaries of Paychex Business Solutions, LLC, (PBS) to provide professional employer organization (PEO) services under the Small Business Efficiency Act (SBEA). Under this program, the certified PBS subsidiaries meet the SBEA's strict auditing and reporting standards and will assume responsibility for Federal tax payments for its eligible clients' worksite employees.
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.
The IRS does not endorse any particular certified professional employer organization. For more information on certified professional employer organizations go to www.IRS.gov.
Paychex, Inc. (NASDAQ: PAYX) is a leading provider of integrated human capital management solutions for payroll, HR, retirement, and insurance services. By combining its innovative software-as-a-service technology and mobility platform with dedicated, personal service, Paychex empowers small- and medium-sized business owners to focus on the growth and management of their business. Backed by 45 years of industry expertise, Paychex serves approximately 605,000 payroll clients across more than 100 locations and pays one out of every 12 American private sector employees. Learn more about Paychex by visiting www.paychex.com, and stay connected on Twitter and LinkedIn.
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SOURCE Paychex, Inc.