| 7/8/2015
ALEXANDRIA, Va., July 8, 2015 -- The National Association of Professional Employer Organizations (NAPEO) today hailed the enactment of a New Hampshire bill that will allow small business clients of professional employer organizations (PEOs) to take advantage of the state’s business enterprise tax (BET) credits. It was signed into law yesterday by Governor Maggie Hassan (D).
“This legislation is a tremendous victory for New Hampshire businesses because it allows them to reap both the benefits of working with a PEO and the benefits of the state’s BET credit,” said NAPEO President & CEO Pat Cleary. “We truly commend Governor Hassan, Senate President Pro Tempore Sharon Carson (R-Londonberry), Senate Majority Leader Jeb Bradley (R-Wolfeboro), and Rep. Jackie Cilley (D-Stafford) for working together in a bipartisan manner to get this done.”
Under current law, all businesses in New Hampshire must pay the BET, which is calculated as a percentage of employee payroll. Businesses can then apply the amount paid as a tax credit against business profits. Since PEOs in New Hampshire are considered the employer of record, only they have been able to take the credit against profits, while the companies they serve have been unable to do so. PEOs work with more than 250 small and mid-sized businesses in the state.
“From the beginning, this has been a fairness issue. The tax credits were intended to help businesses in New Hampshire grow and thrive, and those growing businesses shouldn’t be penalized for partnering with a PEO for payroll, benefits and other HR services,” said Bob Burbidge, chairman of NAPEO’s New England Leadership Council and CEO of Genesis HR Solutions. “We’re thrilled that this wrong has been righted.”
About NAPEO:
The National Association of Professional Employer Organizations (NAPEO) is the Voice of the PEO Industry, with a membership of 300 PEOs of all sizes and 250 industry service partners. PEOs provide payroll, benefits, regulatory compliance assistance, and other HR services to small and mid-sized companies. Through PEOs, the employees of small businesses gain access to employee benefits such as 401(k) plans; health, dental, life, and other insurance; dependent care; and other benefits typically provided by large companies. PEOs provide services to between 156,000 to 180,000 businesses employing between 2.7 and 3.4 million people and generate between $136 and $156 billion in gross revenues annually. For more information about the PEO industry and NAPEO, please visit www.napeo.org.