NAPEO Study Confirms Small Businesses Using PEO's Grow Faster

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Press Release

NAPEO Study Confirms Small Businesses Using PEO's Grow Faster

October 10, 2013 - The National Association of Professional Employer Organizations (NAPEO) recently released a study that found small businesses using PEOs have a ten percent higher growth rate than businesses that do not use PEOs. The study was conducted by economists Laurie Bassi and Dan McMurrer. As PEOs are able to provide HR services at lower costs, the study also found small business save at least 21 percent on HR administration when using a PEO.

According to Jay Starkman, CEO of Engage PEO, “The NAPEO study validates what we have been seeing in the industry for years. By aligning with PEOs like Engage, small businesses have an immediate and clear competitive advantage through HR solutions and other services that are delivered with precision and unmatched expertise.  Small business owners are then able to focus on the things that matter like their bottom line, growth, customer retention and recruiting talent.”

NAPEO has over 300 PEO members and 200 service member providers. Approximately 250,000 businesses and more than 2.5 million people are part of a PEO arrangement, according to NAPEO. To learn more about the findings, visit NAPEO’s website.

About Engage PEO

Engage PEO delivers comprehensive HR solutions to small and mid-sized businesses, sharpening their competitive advantage. Comprised of the industry’s most respected veteran professional employer organization executives, certified HR professionals and attorneys, Engage PEO provides hands-on, expert HR services and counsel to help clients minimize cost and maximize efficiency for stronger business performance.   The company’s superior service offering includes a full range of health and worker’s compensation insurance products, payroll technology and tax administration, risk management services and best-of-breed technology as part of an extensive suite of HR services.  For more information visit www.EngagePEO.com    

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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.

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