NAPEO: National Association of Professional Employer Organizations

Government Affairs
What We Advocate

PEOs Improve Access to Benefits

PEOs provide human resource services to their small business clients-paying wages and taxes and assuming responsibility and liability for compliance with myriad state and federal laws. PEOs also provide worksite employees with access to 401(k) plans, health insurance, dental coverage, life insurance, dependent care and other benefits not typical for small businesses. The cost to small or mid-sized businesses for individually administering this range of employee benefits is prohibitive. However, due to economies of scale and efficiency of administration, PEOs can make available an improved benefit package. By taking care of the complex details of employment, smaller business clients can focus on the "business of their business" generating increased profits while remaining competitive by attracting the best employees with a rich benefit package.

PEOs Are Part of the Solution to Health Care Coverage
Improving health care access is an urgent national priority. Millions of Americans lack coverage and escalating costs are undermining the ability of small businesses to afford employee coverage.

PEOs are highly experienced in providing healthcare benefits for employees working at client small businesses. A recent NAPEO member survey demonstrated that PEOs substantially improve the health benefits of clients. About half of member PEOs report that 50% or more of their small business clients receive a more extensive health care offering as result of the PEO engagement. Almost a third state that 20% or more of new clients did not provide health benefits prior to engaging the PEO.


State-by-State Expansion of Legal & Operational Certainty

PEO or Employee Leasing-specific registration or licensing requirement was enacted.

State law recognition generally as an employer without a registration or licensing requirement.

Pending licensing or registration legislation.






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