What Is the NAPEO?

If you’re a small business owner considering your HR outsourcing options, you may be researching the benefits of using a PEO. One of the best resources to learn more about the PEO industry is the National Association of Professional Employer Organizations (NAPEO). As a trade association, NAPEO conducts research on the efficacy of PEOs, lobbies state and federal governments, and provides support for PEOs.

When you determine that HR outsourcing is right for your company, connect with the experts at NetPEO by calling (678) 376-1212. Our brokers can help you navigate the expanding PEO industry, determine what HR functions will benefit you most, and get you the services you need at a price that won’t bust your budget.

Related: Do the Business Owners Lose Control of Their Businesses When They Work With a PEO?

Professional Employer Organizations (PEOs)

If you run an expanding small business, you know how challenging administrating HR can become over time. PEOs offer services designed to aid businesses with fewer than 500 employees manage their HR challenges. A PEO can provide outsourcing solutions for a variety of HR functions, including:

• Regulation compliance
• Workers’ compensation
• Payroll
• Self-service options for employees
• Benefits administration
• Risk management

When you partner with a PEO, you enter into a co-employment agreement. The co-employment agreement allows the PEO to manage the HR paperwork for your employees by making the organization the employer of record. While you still handle your business as normal, the PEO takes over responsibility for the HR functions you’ve determined to outsource to the organization.

As an added benefit to the co-employment arrangement, both you and your employees enjoy a range of perks. Your employees receive access to the benefits of the PEO, which are often comparable to much larger companies. Likewise, you shift some liability for legal compliance to the PEO, allowing you to rest easier that you’re much less likely to be facing fines for HR mistakes.

Related: What Are the Most Common Litigations Small Companies Face?

NAPEO

NAPEO is the leading organization for the PEO industry. NAPEO is run by a rotating line of industry veterans, including NetPEO’s own Layne Davlin. The organization is responsible for advocating on behalf of the PEO industry, as well as providing critical resources to industry professionals.

Advocacy

As its premier trade organization, NAPEO has taken a leadership role in monitoring regulations that could impact the PEO industry. NAPEO does this by working at the state and federal level to protect industry members, as well as their clients.

At the state level, NAPEO monitors state legislatures for new bills that might impact how PEOs operate. NAPEO’s state leadership focuses on issues including:

• Unemployment insurance
• Workers’ compensation
• Minimum wage
• Paid sick leave
• Taxes
• State-run retirement plans

NAPEO is similarly active at the federal level. NAPEO’s Federal Government Affairs Committee (FGAC) has worked with members of Congress and officials within the Executive branch on:

• Improvements to the IRS’s Certified Professional Employer Organization (CPEO) program
• Securing tax credits for PEO retirement plans
• Protecting PEO employer privacy
• Fighting for protections for PEO-sponsored health plans
• Clarifications to federal regulations on PEO’s workplace safety compliance and responsibilities
• Promoting governmental actions to ease student loan burdens

NAPEO also has a formal political action committee (PAC) to lobby on behalf of PEOs, as well as advocate for the election of officials who support legislation that advances the PEO industry.

Industry Resources

On top of their advocacy work, NAPEO is only responsible for providing tools to help members of the industry. NAPEO does this through:

• Helping PEOs obtain CPEO status with the IRS
• Providing information on regulations and compliances that affect the daily operation of PEOs
• Summarizes how new legislation could impact the industry
• Generating marketing material for members to use
• Publishing PEO Insider, a trade magazine
• Hosting PEO University to train industry professionals

NAPEO also provides bylaws and a code of ethics for its member organizations to follow.

Research

NAPEO is also responsible for funding research into the efficacy of PEOs. Key research findings include:

• The average return on investment (ROI) of using a PEO is 27%
• Businesses using a PEO have a growth rate of 7% to 9% higher than similar competitors
• PEOs help the survival rate of their clients’ businesses
• Clients experience an average decrease in administrative costs of $450 per employee
• Businesses partnered with a PEO see a decreased likelihood of employee departure

Related: How Do PEOs Help Their Clients Control Costs and Grow Their Bottom Line?

Choosing a PEO

Despite the resources that NAPEO can provide, it can still be difficult for a small business owner to find the right PEO partner. As the industry continues to grow, more options will become available, making the process even harder.

NetPEO has the solution to your PEO search problem. The experts at NetPEO can help your business by analyzing your needs and connecting you with high-quality services. As a PEO brokerage, our mission is to make sure that you have the solution to all your HR challenges.

To schedule your free initial needs analysis, call (678) 376-1212 today!