In this edition:
A federal court strikes down the Biden administration's overtime final rule and the IRS reportedly will consider arbitration for ERTC appeals.
The most recent publication of the Delaware Registration included amended regulations reflecting NAPEO's PEO-specific statutory change in the state's Paid Family and Medical Leave program. And in Texas, the state's Department of Licensing and Regulation reaches out to NAPEO as they look at clean-up language to the Texas PEO Statute in 2025.
In this edition:
A NAPEO-supported bill clarifying that the client, not the PEO, is liable for the new employee separation reporting requirements is introduced in the New Jersey Senate.
NAPEO and more than 90 other organizations write a letter to federal lawmakers supporting a bipartisan bill that would expand the Work Opportunity Tax Credit and make it easier to hire disadvantaged Americans.
In this edition:
The IRS announces a new PEO ERTC consolidation program and several more lawmakers speak publicly call on the IRS to quickly process its identified low-risk ERTC claims. Bills that would end the ERTC program are also introduced in both the House and Senate.
At the state level, we score a state unemployment tax reporting victory in Montana and we also submit comments on Maine's proposed rules for its new paid family and medical leave program.
In this edition:
As part of a multistakeholder working group, we urge the Department of Labor to create an e-delivery safe harbor for health and welfare plan disclosures under ERISA.
We also submit comments on the proposed rules for Vermont's state auto-IRA program. Similar to comments we recently submitted in Delaware and Maine, we ask that the client, not the PEO, be treated as the employer for program purposes.
In this edition:
NAPEO President and CEO Casey Clark writes an op-ed in The Hill on the ongoing ERTC delays and the dangers they continue to pose to small and mid-size businesses. Casey also joins Inside Sources on KSL NewsRadio in Salt Lake City to talk ERTC and the need for the IRS to clear the spiraling backlog. Virginia's Democrat senators write the IRS demanding greater transparency about the ERTC program.
We also write a letter to tax committee leaders outlining tax code changes that will benefit small businesses and PEOs as lawmakers consider tax reform in 2025.
In this edition:
NAPEO President and CEO Casey Clark is interviewed by Bloomberg on the Senate's failed bipartisan tax bill vote and its effect on the ongoing ERTC processing delays.
The IRS also announces that it is shifting the moratorium for processing new ERTC claims from September 14, 2023, to January 31, 2024. The agency also says it will soon process 50,000 "low-risk" ERTC claims and IRS officials tell us they are working on a consolidated ERTC return program for PEOs.
In this edition:
The National Labor Relations Board abandons its joint employer rule appeal, marking a major victory for our industry.
Ohio Gov. Mike DeWine signs into law a NAPEO-sponsored bill codifying a PEO's ability to offer large group health plans and NAPEO testifies before the Maryland Insurance Administration for its study on the PEO industry and our healthcare offerings. We also submit comments on Maryland's proposed family and medical leave insurance program as well as on proposed regulations from California's Civil Rights Council.
In this edition:
Delaware Governor John Carney signs into law a critical bill ensuring the state's new paid family and medical leave program is looking at the client, not the PEO, for program purposes.
NAPEO holds a call with the IRS to hear updates on the ERTC-related issues, and the agency also proposes changes to its "recapture" regulations that say erroneous refunds of ERTC credits will be treated as an underpayment of tax.
In this edition:
The IRS announced the end of its review of its ERTC backlog, notably stating that 10%-20% of the more than one million claims show "low risk" of fraud. We issued a statement urging the agency to process these claims, and NAPEO President and CEO Casey Clark is quoted in Politico's coverage of the ERTC.
In addition, the Delaware House passes important paid family and medical leave legislation, and a NAPEO-sponsored bill codifying a PEO's ability to offer large group health plans makes its way through the Ohio House.
In this edition:
We recap the 2024 PEO Capitol Summit, where hundreds of NAPEO members gathered in Washington for three days of meetings and memorable experiences with their colleagues from across the country. The second annual National PEO Week was also a resounding success!
In addition, we send letters to Pennsylvania lawmakers seeking amendments in paid family and medical leave program legislation. The Maryland Insurance Administration commission steps down and a new executive director of the Texas Department of Licensing and Regulation is selected.
In this edition:
The Federal Trade Commission votes to ban noncompete agreements. A coalition led by the U.S. Chamber of Commerce sues, arguing it "sets a dangerous precedent."
The Department of Labor issues fiduciary and overtime eligibility compensation final rules, raising the minimum annual salary threshold for overtime pay eligibility from $35,568 to $43,888 per year effective July 1 and increasing again to $58,656 on January 1, 2025.
NAPEO language is included in Delaware retirement regs and sick time and safety leave bill.
In this edition:
The Senate votes to block the National Labor Review Board's joint employer rule. NAPEO issues a statement in support of the passage, warning of the dangers of the NLRB's heavy-handed regulation.
Arizona Governor Katie Hobbs signs into law a bill that repeals registration requirements for PEOs in Arizona beginning July 19, while PEO bills also reach the governor's desk in both Kansas and Maryland.
In this edition:
A NAPEO-supported bill that would ensure equitable treatment for small businesses in a PEO relationship in Delaware was heard before the state's Senate Health & Social Services Committee, while the 2024 Florida legislative session ends with two positive outcomes for the PEO industry.
NAPEO President and CEO Casey M. Clark is also quoted on the ERTC in the March 22 PoliticoPro Morning Tax newsletter.
In this edition:
The Maryland House passes a bill to study PEOs, while NAPEO members spread industry awareness at Advocacy Day in Albany.
Following NAPEO member testimony, Kansas's Senate Commerce Committee passes a bill that would transfer PEO registrations from the Department of Insurance to the Secretary of State's office.
In this edition:PEO bills pass the Kansas House and Maryland Senate, while a Texas judge delays the effective date of the National Labor Relations Board's joint employer rule until March 11.
NAPEO also takes gold for best association social media at the annual TRENDY Awards in Washington.
In this edition:
Thanks to members' strong advocacy efforts, NAPEO defeats legislation that would have ended co-employment in Oregon.
We also host our Georgia Leadership Council Forum and Advocacy Day in Atlanta and submit comments on Paid Family and Medical Leave rules in Delaware.
In this edition:
We recap our Federal Government Affairs Committee's annual meeting in Washington, where we discussed key legislative priorities for the coming year like client payroll tax client liability, the National Labor Relations Board joint employer rule, and process reforms from the IRS.
The House passes a $78 billion bipartisan tax bill that exempts CPEOs from the definition of "ERTC promoters," while defining the latter in a manner that exempts non-certified PEOs.
In this edition:We submit comments in response to the New Jersey Department of Labor and Workforce Development’s proposed rules regarding an employer’s requirement to notify the department immediately and simultaneously upon separation of employment.
Illinois' retirement savings program also requests information from PEOs about client companies with employees in the state.
In this edition:
NAPEO writes a letter to IRS Commissioner Daniel Werfel urging the agency to reverse its recent payroll tax liability policy.
In Arizona, a bill is filed that removes registration requirements for PEOs, while several workers' compensation liability and licensing bills are filed in Florida that impact our industry.
NAPEO is also quoted in Politico Tax's ERTC coverage.