Skip to main content

Market Overview

Who's Got Your Paycheck? New IRS Rule Removes Tax Risk and Is Expected to Fuel Further Growth of Professional Employer Organizations

Share:

WICHITA,, Kan., July 10, 2017 (GLOBE NEWSWIRE) -- Hundreds of businesses of all types and sizes across Kansas have been drawn to the efficiency of handing over the cost and complexity of human resources and payroll to a specialized outside firm. Now, the Small Business Efficiency Act (SBEA) has created a certification program, facilitated by the Internal Revenue Service (IRS), to ensure protection for businesses from fraudulent activity and tax payment mistakes performed by a Certified Professional Employer Organization (CPEO). Human resources company Syndeo, located in Wichita, Kan., has been approved as the first, and currently only, Kansas-based CPEO.  "Before, if a company dealt with a PEO, there were no government protections put in place if that PEO were to miss payments, or worse, perform fraudulent activity," said Todd Matheny, Vice President of Finance for Syndeo Outsourcing. "Now, Syndeo customers can rest assured knowing that we've passed the rigorous certification set by the IRS, and we are held 100 percent liable for all tax payments."  To gain and maintain certification under the new program, Syndeo had to meet rigorous requirements, including tax history, background checks, financial audits, working capital, bonding, and quarterly testing. Currently, it is estimated that up to 180,000 businesses nationally utilize a PEO to outsource employment management functions such as HR, payroll, benefits administration, employment tax withholding, and tax reporting responsibilities. An uncertified PEO is the employer-of-record for tax filing purposes, but the actual employer could be left at fault for missing tax payments. Now, employers dealing with a Certified Professional Employer Organization (CPEO) have the security of knowing the CPEO has tax liability in the event of a missed payment. This arrangement allows clients to shift key employer responsibilities to the PEO, while maintaining day-to-day control over employee activities. The certification, Matheny continues, helps set the tone for PEOs in the nation. "While this is a voluntary program, many clients are already beginning to ask how they can limit as much risk as possible in dealing with a PEO. This certification is the best assurance a PEO can give to their customers and every business using a PEO should ask that they are certified."  

0_int_syndeo_StaffingHRPayrolllogo.png



About Syndeo

Syndeo is a Kansas-based, human resources company. Headquartered in Wichita, Kan., Syndeo has developed expertise in the region's diverse economy, along with a solid background in what works for Kansas businesses. The Syndeo family of companies consists of Syndeo Outsourcing – a human resources outsourcing provider, Syndeo Payroll Solutions – a full-service payroll services provider, and Syndeo Staffing – a full-service recruiting and staffing services provider. Syndeo also provides consultation and services in workers compensation administration, benefits administration and more.

Attachments:

A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/ae8b946a-6a65-4e6f-9ea8-4f31257e86e8

Garion Masterson
Syndeo Outsourcing
3169779600
gmasterson@rsmconnect.com

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com