ESAC (Employer Services Assurances Corporation) accreditation is another form of PEO certification. EOs that are ESAC accredited have undergone a rigorous process to meet specific financial, ethical, and operational standards set by ESAC.
ESAC Accredited PEOs offer many of the same benefits as CPEOs. The key differences are:
Certification Body CPEO: Certified by the IRS based on federal tax compliance and financial standards. ESAC: Accredited by the Employer Services Assurance Corporation for operational, financial, and ethical standards. Focus of Accreditation CPEO: Focuses on tax compliance and financial responsibility. ESAC: Emphasizes financial stability, ethical practices, and operational standards. Government Recognition CPEO: Recognized and regulated by the IRS. ESAC: Focuses on broader compliance aspects, including financial, ethical, and operational standards. Scope of Assurance CPEO: Primarily focuses on tax-related assurances and financial aspects. ESAC: Broader focus covering financial stability, ethical practices, and operational standards. Client Protections CPEO: Provides certain protections related to federal employment taxes. ESAC: Offers client protections through adherence to higher operational and ethical standards. Emphasis on Compliance CPEO: Strong emphasis on IRS compliance and tax-related matters. ESAC: Focuses on broader compliance aspects including financial, ethical, and operational standards.
CPEOs vs. ESAC Accredited PEOs