Legislative and Regulatory Agenda

Tax reform will be NAPEO’s top priority in 2025, and we will lobby for the following :

IRS Modernization – NAPEO will lobby Congress to ensure that the IRS updates antiquated technologies and processes, such as fax machines and paper forms.
Payroll tax liability clarification: NAPEO will lobby for Inclusion of language in tax reform that clarifies the liability for payroll tax credits between PEOs and their clients.
Section 199A tax deduction – NAPEO will support legislation to extend and make permanent Section 199A tax deductions, and work to add language to this provision that makes clear that PEO clients are eligible for this tax deduction.
The R&D Tax Credit – NAPEO will support legislation to make permanent the R&D tax credit for small businesses.

Publication of PEO customer lists on the Department of Labor website – NAPEO will continue working to stop the publication of PEO-sponsored health insurance and retirement plan participants on the Department of Labor website.
Paid Family Leave – NAPEO will work with the proponents of paid leave in Congress to ensure that these bills do not place undue compliance burdens on PEOs or their clients.
Retirement Savings – NAPEO will continue to support legislation that creates incentives for PEOs to offer retirement benefits and for small businesses to participate in PEO-sponsored retirement plans.
Joint Employer – NAPEO will continue to support legislative and regulatory efforts to tighten the definition of joint employer.

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.
Healthcare – NAPEO will monitor federal health policy for potential PEO industry impact.