For immediate release:
Axcet HR Solutions Among the First to Receive IRS Certification
LENEXA, KS - Axcet HR Solutions (Axcet) has been awarded Certified Professional Employer Organization (CPEO) status by the Internal Revenue Service (IRS). Axcet is honored to be among the first 84 professional employer organizations to receive this designation.
The IRS established this voluntary certification program for PEOs as part of the Small Business Efficiency Act (SBEA) of 2014. To be certified under the new program, CPEOs must have a documented history of federal, state, and local tax compliance, financial responsibility, as well as organizational integrity. The voluntary, yet rigorous, certification process is aimed at identifying the PEOs that meet the high standards for compliance set by the IRS.
CPEO clients benefit from this certification several ways:
- Client Protection. With the new quarterly reporting requirements to the IRS, CPEO clients can rest assured that employment-related taxes are being handled appropriately.
- Tax liability. The IRS cannot hold CPEO clients liable for unpaid taxes in the event the CPEO doesn’t pay the required taxes. CPEOs take sole liability for their clients’ federal employment related taxes.
- Tax credit eligibility. The SBEA confirms that clients of CPEOs will continue to qualify for specified federal tax credits such as the Work Opportunity Tax Credit (WOTC).
- No double taxation when a company joins a PEO mid-year. Under the SBEA, a CPEO can be treated as a successor employer for the purposes of Social Security/Medicare (FICA) and Federal Unemployment (FUTA) taxes. This will eliminate the restarting of the FICA and FUTA wage bases when joining a CPEO.
- Ongoing Assurance. To remain certified, CPEOs must comply with IRS requirements including annual verification, bonding from a qualified surety, and annual audited financial statements; as well as quarterly assertions, attestations, and working capital statements.
“Axcet has always maintained high standards for financial reporting and accountability. This IRS certification is yet another reason for our clients to have confidence in their partnership with Axcet.” Gerald Diddle, President and Founder, Axcet HR Solutions.
Axcet HR Solutions has been administering human resources, benefits, payroll, safety, and workers' compensation duties for small to mid-sized businesses in the Greater Kansas City metro area since 1988.
The IRS does not endorse any particular certified professional organization. For more information on certified professional organizations go to www.irs.gov.
For information on how Axcet HR Solutions - Kansas City's hometown PEO - can help, visit About PEOs.