“These are the kinds of smart, targeted policies that will keep our small businesses – and our economy – on the path to prosperity,” Thompson added.
“Federal tax law has not kept pace with changes in human resource management and this bill provides important modernization,” Brian Fayak, the group’s chairman and founder of an Oklahoma-based PEO, said in a statement. “Clarification of PEO and small business client tax responsibilities will improve compliance and provide certainty for these small business clients.”
To meet IRS benchmarks, PEOs would have to illustrate basic financial qualifications, among other things.
In general, PEOs provide a host of services for companies, including oversight of unemployment and health insurance responsibilities.