A Certified Professional Employer Organization (CPEO) is a specific designation by the IRS for PEOs that meet rigorous, federally regulated standards. CPEOs undergo a thorough certification process by the IRS, ensuring they meet requirements related to financial responsibility, tax compliance, and other regulatory criteria.
The advantages of working with a Certified PEO (CPEO) versus a standard PEO include:
IRS Certification: CPEOs must pass stringent IRS requirements to ensure compliance.
Tax Liability Protection: CPEOs assure against certain federal employment taxes.
Financial Transparency: CPEOs are subject to financial audits.
Credibility and Trust: CPEO certification demonstrates a higher level of credibility.
Reduced Tax Risks: CPEOs can reduce the risk of tax-related issues for client companies.