What We’re Focused On
Top Priority: H.R. 3223
Our primary objective is passage of H.R. 3223, legislation that clarifies that liability for payroll tax credits belongs to the entity that benefits from the claim. Other top priorities include:
- IRS Modernization – NAPEO will lobby Congress to ensure that the IRS updates antiquated technologies and processes, such as fax machines and paper forms.
- Publication of PEO customer lists on the Department of Labor website (Form 5500) – Engagement with DOL and EBSA on Form 5500 will remain a priority. NAPEO will pursue opportunities with the department as well as oversight settings in Congress to elevate our concerns and priorities.
- H.R. 1 (One Big Beautiful Bill) Implementation – As agencies implement H.R. 1 (OBBB), we will continue to engage in rule making and guidance development to pursue outcomes that align with member interests. This includes monitoring agency actions and submitting comments.
Other Priorities
- Payroll Tax Credits – NAPEO will engage in and monitor issues related to payroll tax credits and other employer benefits to ensure PEOs are appropriately considered and that PEO clients remain eligible for all tax credits and benefits generally available to employers absent the PEO relationship.
- MEWA Clarification – NAPEO will begin raising awareness among industry stakeholders and policymakers regarding a potential ERISA legislative or regulatory change that would clarify that fully insured PEO health benefit plans are not considered multiple employer welfare arrangements (MEWAs).
Legislation to Monitor
- Immigration – NAPEO will monitor business immigration legislation and regulations and if necessary, engage with Congress and the Administration to make sure these proposals recognize the PEO business model and differentiate client and PEOs responsibilities.
- Privacy/AI legislation – NAPEO will monitor federal AI policy for potential PEO industry impact.