NAPEO's 2020 Federal Legislative and Regulatory Agenda
The NAPEO Board of Directors has approved a federal legislative and regulatory agenda for 2020. The agenda was developed by the NAPEO Federal Government Affairs Committee (FGAC).
Improve/strengthen the CPEO program
- Continue to work with the IRS to fix administrative problems with the program.
- Work with Congress and the Administration to make regulatory improvements to the CPEO program with a focus on obtaining electronic signatures on Form 8973.
- Have bipartisan SBEA “fix” bill introduced by industry champions and look for opportunities to attach measure to appropriate legislative vehicle. Specific items to be corrected include:
- Prohibit the IRS from imposing reporting requirements on CPEO customers;
- Eliminate the 85 percent rule;
- Fix the CPEO contract requirements related to the (1) recruit, hire, and fire language, and (2) CPEO maintenance of employee records;
- Clarify that an individual performing services for more than one customer of a CPEO is only subject to a single wage base; and
- Establish due process procedures with respect to a proposed IRS denial or suspension/revocation of CPEO status.
Clarify that PEO clients who join a PEO-sponsored retirement plan are eligible for the enhanced pension plan start-up tax credit included in the SECURE Act
- NAPEO to seek regulatory or legislative clarification to ensure that PEO clients that provide – for the first time - retirement benefits to their employees through a PEO-sponsored 401(k) plan are eligible for a tax credit (up to $5,000 annually for three years) created by the SECURE Act.
- NAPEO to continue monitoring retirement legislation to ensure such proposals do not disadvantage PEOs or their clients.
Prevent the participating employers listed with PEO Form 5500s filings from being published on the Department of Labor Website
- NAPEO is to work with Congress to find a legislative fix that results in PEO participating employer information being protected from public disclosure.
- NAPEO is to reach out to other multiple employer plan sponsors to build support for this legislation.
Protect the ability of PEOs to sponsor health plans
- NAPEO is to look for legislative and regulatory opportunities to protect PEO-sponsored health plans.
- The NAPEO Healthcare Committee is to develop material to assist in federal and state lobbying efforts.
Clarify federal workplace safety compliance/responsibilities for PEOs and their client on a client’s worksite.
Continue to work with the Equal Employment Opportunity Commission to obtain a new policy that holds eligible PEO clients ultimately responsible for filing annual EEO-1 Forms.
Support federal regulations and legislation that prevent PEOs from being classified as joint employers
- Support legislation to overturn the Browning-Ferris joint employer standard and replace it with a standard that is based on the possession and exercise of substantial, direct and immediate control over the essential terms and conditions of employment.
- File comments in support of proposed rules that promote a joint employment standard based on the possession and exercise of substantial, direct and immediate control over the essential terms and conditions of employment.
- Oppose the PRO Act joint employer language.
Promote legislation and administrative actions that assists employees with repayment of their student loans
- Support/participate in the Tax Free/Debt Free Coalition;
- Support legislation to allow employers to contribute on a tax free basis money towards their employees student loan debt repayment; and,
- Work with the Department of Education to clarify that non-profits that use PEOs do not end their employee’s eligibility for the student loan debt retirement program.
Support banking legislation that allows PEOs to engage in business relationships with companies in states where such enterprises can legally sell cannabis/cannabis products.
Legislation to Monitor
- Mandatory auto enrollment retirement bills
- Federal leave legislation
- Any federal legislation affecting employers in a manner based on W-2 wages, employer size, or similar measures/thresholds