Good News For PEO Clients Eligible for the 20% Pass-Through Deduction

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Good News For PEO Clients Eligible for the 20% Tax Deduction for Pass-Throughs
Press Release

Good News For PEO Clients Eligible for the 20% Pass-Through Deduction

The Treasury Department and IRS issued formal guidance today clarifying that being a client of a PEO does not affect the eligibility of pass-through entities for the 20 percent tax deduction in Section 199A of the tax code.

The tax reform bill passed at the end of 2017 created Section 199A—allowing taxpayers to deduct the "combined qualified business income amount" from a pass-through entity in an amount up to 20 percent of the taxpayer’s taxable income.

As noted in a press release issued by the National Association of Professional Employer Organizations (NAPEO), some accountants had erroneously advised clients that are pass-through entities that a PEO relationship might jeopardize their eligibility for this tax deduction. Today’s announcement provides the needed clarification for current and prospective PEO clients.

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Relevant language of the proposed rule can be found here

IRS news release found here.

Press Release

Engage PEO Continues Growth in Southern California; Adds Crissy Thomas as Vice President of Sales

Fort Lauderdale, Fla. – September 16, 2019 – Engage PEO, a leading professional employer organization providing HR outsourcing solutions to small and mid-sized businesses across the U.S., today announced Crissy Thomas has joined its growing national sales team as Vice President of Sales for Southern California.

Press Release

Engage Adds Vice President of Sales for New England, Michael Stanley

Fort Lauderdale, Fla. – Sept 9, 2019 – Engage PEO, a leading professional employer organization providing HR outsourcing solutions to small and mid-sized businesses across the U.S., today announced Michael Stanley has joined the company as Vice President of Sales for New England. Mr. Stanley will be based in Northeastern Massachusetts and Southern New Hampshire and will focus on adding new business to Engage’s established and growing roster of clients in New Hampshire, Massachusetts and Connecticut.

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