Growing PEO Industry Continues to Raise Its Standards

Louis Basso, and Barry Shorten

With 400 member-companies operating in 50 states, the National Association of Professional Employer Organizations (NAPEO) has successfully fostered the growth and development of the PEO industry. As this $68 billion industry has gained momentum, operational requirements and standards have risen as well. Industry leaders realize that it is critical to provide assurance to a client that a PEO has the necessary competencies, financial resources, and ethical standards to perform at the highest level. For CPAs, understanding the evolving PEO regulatory landscape and the various levels of certification is important, especially as more middle-market companies are gravitating toward human resources outsourcing (HRO) relationships.