Today, the IRS announced that it is requesting information regarding current professional employer organization (PEO) industry practices. Under the Achieving a Better Life Experience (ABLE) Act of 2014, the IRS is required to establish a voluntary certification program for PEOs. The law requires that a certified PEO meet a number of requirements, including certain bond and independent financial review requirements. The IRS plans to begin accepting applications for PEO certification on July 1, 2016.
In an effort to streamline the implementation of the new federal certified PEO program, the IRS is requesting information on a number of topics, including: financial audits, verification of payroll tax obligations, working capital and net worth requirements, and covered employees. The deadline for submissions is January 8, 2016.