PEO Industry Members Promote Small Business Efficiency Act (SBEA)

PEO Industry Members Promote Small Business Efficiency Act (SBEA)

NAPEO Leads Efforts to Promote Legislation

Members of the National Association of Professional Employer Organizations (NAPEO) met in Washington DC this week for the annual NAPEO legislative leadership conference. While attending the conference many PEO executives also took the opportunity to meet with various legislators and staff regarding their promotion of the Small Business Efficiency Act (SBEA). The bill is known as
H.R. 2466 in the House of Representatives and
S. 1908 in the Senate with sponsorship provided by representatives Mike Thompson (D-CA) and Kevin Brady (R-TX) in the house and Bill Nelson (D-FL) and Charles Grassley (R-IA) in the Senate.

About the Small Business Efficiency Act

The act has been advocated by the PEO industry for many years and seeks to solidify legislative certainty for the PEO business model in regards to tax collection authority and responsibility and would require audited financial statements and bonding for any PEO seeking IRS certification. The SBEA also seeks to ensure that except for payment of employment taxes, federal common-law employer laws remain unaffected. According to the national association:

  • The bill was passed by the Senate twice in 2007 and enjoys bipartisan support in the U.S. House and the Senate.
  • Budget proposals from both President Obama and President Bush have included provisions similar to the SBEA.
  • The SBEA contains provisions that have been called for by the Treasury Inspector General for Tax Administration.

PEO Industry Group Lobbying

Since 1998 NAPEO member dues have funded over five million dollars for lobbying on federal legislation to promote the PEO industry.

Part of the most recent initiative to advocate the Small Business Efficiency Act included providing a SBEA and NAPEO flyer containing an overview of the bill to all members of congress.