Nextep Proudly Maintains CPEO Designation
Running a business can be a mix of excitement and, let’s face it, headaches. Managing tax compliance, payroll, HR issues, workers’ comp, and employee benefits takes a lot of time and resources. Professional Employer Organizations (PEOs) like Nextep step in to shoulder some of that burden. But here’s the thing: not all PEOs operate on the same level. How do you sort through the noise? Look for the IRS certification for PEOs: CPEO. It matters.
Nextep has maintained the Certified Professional Employer Organization (CPEO) designation since 2017. We were among the first PEOs to earn this recognition. This isn’t a simple pat on the back. The IRS established this program under the Small Business Efficiency Act. It’s a rigorous process to qualify. PEOs must prove they can handle the financial and regulatory demands through serious background checks, detailed financial reporting, regular third-party audits, and more. The PEO must also be bonded.
Why does this matter to you?
It’s all about less risk for your business and knowing that your PEO partner is trustworthy. When a PEO earns CPEO status, it shows they’ve met strict standards.
It also means savings. “This certification,” notes Nextep CEO Brian Fayak, “offers clients greater financial protection and IRS-recognized tax advantages that go even beyond our Employer Services Assurance Corporation (ESAC) certification.” One often overlooked benefit is the elimination of the wage base restart. Switch PEOs? You may face a potential double tax hit. Not with a CPEO.
Are you shopping for a PEO partner for your company and your people? Don’t skip this step. Ask about the CPEO designation. It clearly indicates a PEO’s commitment to compliance and financial stability. This designation isn’t just about ticking boxes. It’s about safeguarding your business.
The IRS does not endorse any particular certified professional employer organization. For more information on certified professional employer organizations, please visit www.IRS.gov.
Additional Resources:
