Now Einstein HR can help more small businesses grow and thrive.
Atlanta, GA, January 14, 2015— Einstein HR, Inc., today applauded new federal legislation defining professional employer organizations(http://www.einsteinhr.com) (PEOs) in the federal tax code and creating a voluntary certification program for PEOs within the IRS. PEOs like Einstein HR provide comprehensive human resources, benefits, payroll, and compliance services for small and mid-size businesses.
"I feel this long awaited change in federal regulation is what we have been working towards for 17 years,” said Layne Davlin, Chairman of the Board for Einstein HR. “Finally we have set standards the industry needed and know how to comply with them. It gives legitimate language on how a PEO works and enables a PEO a much higher level suite of services that can assist with a standard set of expectations and on a national basis.”
The legislation, called the Small Business Efficiency Act/SBEA, creates a voluntary certification program for PEOs within the IRS. To become IRS-certified, a PEO would have to meet financial standards, including bonding and independent financial audit requirements. The PEO would also have to satisfy reporting obligations and other appropriate standards set by the IRS.
Once certified, a PEO would take on sole liability for the collection and remission of federal employment taxes for worksite employees. President Obama signed SBEA last month, and the key champions of the bill were Reps. Kevin Brady (R-TX) and Mike Thompson (D-CA), and Sens. Chuck Grassley (R-IA) and Bill Nelson (D-FL).
“Recent economic studies have shown that businesses in a PEO arrangement grow 7-9 percent faster, have 23-32 percent lower employee turnover and are 50 percent less likely to go out of business,” Davlin said.
“We are thrilled this legislation will help us bring these bottom-line-boosting advantages to an increasing number of small businesses.”
Approximately 250,000 businesses and 2.5 million people are part of PEO arrangements, and PEOs provide access to healthcare coverage for as many as six million people. Through a PEO, the employees of small businesses gain access to employee benefits, such as 401(k) plans, health, dental and life insurance, dependent care, and other benefits typically provided by large companies.
About Einstein HR:
Einstein HR was born out of a need in the marketplace for a full service HRO company. Einstein was created with one goal in mind: to help client companies cost-effectively outsource the management of payroll, workers’ compensation, human resources and employee benefits while providing the best customer service possible. Today, our team of experts provides HR outsourcing services for both mid-sized and small emerging growth companies. From a la carte services to an all-inclusive HRO strategy, find peace of mind in HR with Einstein HR. For more information, call 877-687-3622(EMC2) or visit our website at www.EinsteinHR.com.
Einstein HR, Inc.
3805 Crestwood Parkway #100
Duluth, GA 30096