NAPEO: National Association of Professional Employer Organizations



February 2015
SPECIAL FEATURE
The U.S. Senate passed the Small Business Efficiency Act (SBEA), NAPEO's top federal legislative priority, on December 16, 2014. The House of Representatives previously approved it as an amendment to the Achieving a Better Life Experience (ABLE) Act to offset the costs associated with that proposal, then incorporated it into the tax extenders legislation. President Obama signed the tax extenders legislation, which included the SBEA, on Friday, December 19. The SBEA defines PEOs in the federal tax code and creates a voluntary certification program for PEOs within the IRS...
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FEATURE
The Affordable Care Act (ACA) is a colossal law made up of a massive number of bits and pieces—or to use the technical term, rules and regulations. To help their clients comply, PEOs must understand both the ACA as a whole—what needs to be accomplished—and the ACA down to the cellular level—how it is to be accomplished.
    As rules, regulations, and guidance are released, a better picture of this cellular structure comes into view. Each cell layer, put in the context of the whole, provides the structure through which PEOs can achieve compliance for their clients, adapt as the ACA shifts to enforcement, implement the rules and regulations with new clients, maintain affordability, and ensure delivery of healthcare options...

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DEPARTMENTS

human resources
Avoiding Burnout in a PEO HR Department
A Different Experience than Being a Dedicated HR Person for One Company, and Oftentimes Much More Challenging

Beckie Porter
Because of the nature of the business, PEOs find themselves constantly switching gears to deal with different clients, thus challenging their HR consultants (HRCs). To further the challenge, a PEO's HRCs may not have first-hand knowledge of what a client company's morale and day-to-day struggles are in the intimate way an onsite HR person would. A company's internal HR staff has to make sure solutions are implemented, whereas a PEO doesn't have absolute control, thus true implementation still rests upon the PEO client. The biggest difference comes down to authority. Internal HR has more final authority in implementing processes.
    PEO HRCs must take time to...

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marketing
Content Marketing: Staying Ahead of the Curve
Marketing Trends and Opportunities for the PEO Industry

Ruth T. Cyrus
Effective marketing is fundamentally based on getting the right information to the right people at the right time, and in the right way. While this basic concept has been around for ages, we must keep up with the shifting B2B marketing landscape to better attract and engage our prospective clients.
    Over the past several years, content marketing has likely been a...

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operations
Options for Serving Clients Expanding Overseas
Javier Romeu
Over recent years, more and more U.S.-based companies are exploring opportunities to expand internationally. Instead of managing sales and business development remotely from their headquarters in the U.S. or setting up local subsidiaries, many companies are looking at alternative methods of employment and payroll throughout their international operations and are turning to PEOs to help them manage their foreign workforces...
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start-up guide
Capital and Funding Sources for PEO Start-Ups
Favorable Market Conditions Fuel Renaissance of New Entrants to the PEO Space

Dan McHenry
The PEO industry is once again attracting the attention of new entrants. Along with the additional complexities small businesses face, the Affordable Care Act (ACA) has been a catalyst for the steady arrival of new entrants in the PEO space. Other factors include a steadily improving economy, stabilizing unemployment rates, a successful TriNet HR Corporation IPO, and NAPEO's landmark accomplishment of the passage of the Small Business Efficiency Act (SBEA) in December 2014...
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  COLUMNS

the inside word
Law of the Land
Brent R. Tilson
2015 NAPEO Chairperson

On December 19, we ushered in a new era for the PEO industry, and with the stroke of his pen, President Obama signed the Small Business Efficiency Act (SBEA) and forever memorialized the PEO industry in federal law. This simple act by the president is in stark contrast to the past 17 years of time, money, and effort spent on this goal. Yet, as we have all learned, good things come to those who wait, and who are relentlessly focused.
    This new law creates...

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napeo notebook
SBEA: Now the Real Work Begins
Patrick J. Cleary
"Those who enjoy good sausage or legislation," goes the adage, "should never watch either being made." And so it was with the passage of the Small Business Efficiency Act (SBEA), passed first by the House and then by the Senate in December, and finally signed into law by the president.
    As most of you know, the effort to pass this bill has spanned some 17 years and an enormous expenditure of money. In the end, it emerged as part of the Achieving a Better Life Experience (ABLE) Act, a bill establishing tax-free savings accounts for people with disabilities...

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up front
NAPEO Announces New and Improved Regulatory Database for PEO Members
Brendan W. Williams, Esq.
"In a 2011 member survey of NAPEO members, the association's state regulatory database tied with legal analyses as the resources most valuable to members.
    While legal analyses have continued to be published on a variety of topical issues—most particularly the Affordable Care Act (ACA)—the appearance of the state regulatory database has belied the effort to keep it up-to-date, an effort that has also been complicated by the database's outdated, less-than-user-friendly format. That is among the reasons why, in 2014, NAPEO partnered with the Alliance for PEO Electronic Compliance (APEC) to build a new regulatory database...

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napeo advisor
Wellness Program Pitfalls, Union Organizing Rules
Brendan W. Williams, Esq.
Q. Can encouraging wellness get you a federal fine?
    A. Perhaps. As the number of medically obese Americans has swelled to record numbers–comprising 35 percent of the population at a medical cost of $147 billion, according to the Centers for Disease Control and Prevention—the Equal Employment Opportunity Commission (EEOC) has filed suits against employer wellness programs, alleging that they violate the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA)...

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peo community
Mentoring with the Moxxie Mentoring Foundation
Dawn Davidson Drantch, Esq.
I began mentoring with the Moxxie Mentoring Foundation, a young women's mentoring organization, at its inception in 2012. The foundation, a 501(c)3 nonprofit corporation, is an outgrowth of the Moxxie Network, a women's business network community, which is how I originally got involved. The foundation was created to expand the mentoring program activities of the Moxxie Network, which began in 2009.
    I began in the "Jr Moxxie" program about five years ago (the first year any of the Moxxie mentoring programs existed), which is one-on-one mentoring of young women attending local colleges. About five local colleges send several young female students to the program each year. My mentee would accompany me to networking events, we'd email and meet for coffee or breakfast, and just chat a lot about things she was doing, or contemplating doing, such as classes and advanced degrees. The program included...

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small business perspective
Small Business Owners Share their Favorite Productivity-Boosting Apps
Clare Curley
Knowing task management can be a real time sucker, Cody McLain, owner of WireFuseMedia, is growing his startup in Austin, Texas, with the help of Redbooth, a task collaboration app available on iOS, Android, and Web. For $49 per month, it provides him a platform for assigning and tracking tasks by instant messaging and chatting one-on-one with team members...
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peo spotlight
UniqueHR: Garry Bradford
Uniquely Driven

Stephanie Oetjen
Anyone who knows Garry Bradford is not surprised that he gets up at 4 a.m. every day, runs/walks seven miles, and gets into his office at UniqueHR by 7:15. Just as he packs a lot into every day, he has packed a lot into his professional life.
    Starting in 1967, at age 22, Garry entered the U.S. Army as a private. When he retired from the Army in 1997, he was a colonel. These years included both active and reserve duty.
    "In the Army, I went in as a spoiled brat and came out very humble," Garry said. "It taught me how to manage budget, inventory, and equipment. It taught me leadership skills, people skills, and planning skills. It taught me confidence in my abilities, it taught me the value of teamwork, and a strong commitment to my country."...

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global insights
The Right to Risk and Be Rewarded
Thomas J. Donohue
What if failure was never an option in our country?
    Thomas Edison might not have brought the world-changing advancement of electricity into our lives—he went through 1,000 failed attempts before achieving a successful prototype of the light bulb. Henry Ford might not have pioneered the assembly line and precipitated one of the most significant industrial transformations in history—his first two attempts to establish the Ford Motor Company collapsed under partner dispute and bankruptcy. Bill Gates might have missed out on important lessons, or even thrown in the towel, before founding Microsoft and helping make computing possible for the masses. His first venture was a flop...

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NAPEO Medallion Partners
NAPEO Thanks its 2015 Medallion Partners
Black Diamond Partners

F.W. Davison and Company         Slavic401k.com
Diamond Partners

Artex Risk Solutions, Inc.         Compass Consulting Group, Inc.

Massachusetts Mutual Life Insurance         McHenry Consulting

Risk Transfer Insurance Agency, LLC
Platinum Partners

MetLife        Summit Software         ThinkWare Corporation

Transamerica Retirement Solutions
Gold Partners

ALLInsurance Solutions Management, LLC         EAP Consultants, LLC

PayPlus Software, Inc.         Pinnacle Financial Services, Inc.

Stonehenge Insurance Solutions
Silver Partners

Barrow Group, LLC         Eflexgroup, Inc.

Fisher & Phillips LLP         Kronos SaaShr, Inc.
Bronze Partners

Capital Alliance Corporation         Jackson Lewis P.C.

NetWise Technology         U. S. Risk Insurance Group, Inc.

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