It was a privilege to sit down with Jane McCoggins, at the NAPEO - The National Association of Professional Employer Organizations Conference in the Sunshine State, where we discussed the differences between ESAC accreditation and IRS certification—and why it’s essential to recognize the value both provide.
Here are my key takeaways:
- IRS certification ensures a PEO is compliant with tax regulations, covering federal and state employment taxes. It also guarantees that PEOs are responsible for proper payment and filing of employee tax obligations—an important baseline for financial accountability.
- ESAC accreditation, on the other hand, goes much further. It monitors over 40 financial, ethical, and operational standards, ensuring that PEOs uphold the highest level of integrity. This includes quarterly independent verifications of tax payments, benefits contributions, workers’ comp, and health insurance premiums. It also ensures financial reserves are in place to protect against loss-sensitive insurance plans.
While it’s best to work with a PEO that has both IRS certification and ESAC accreditation, ESAC is the gold standard, providing the highest level of oversight, financial backing, and operational excellence.
Partnering with an ESAC-accredited PEO means you’re not just compliant—you’re working with a PEO that’s held to the highest industry standards.
Thanks again to Jane for a great conversation on how these standards shape the industry and bring value to businesses and employees.
#PEO #Accreditation #ESAC #IRS #BusinessAssurance #Compliance #Leadership #EmployeeBenefits