Tena Mayberry, Century II President, and Kim Troup, Century II Vice President, witnessed Tennessee Governor Bill Haslam sign legislation this week promoting small business growth. NAPEO issued the following press release on June 4, 2012.
NAPEO Applauds Passage of Tennessee Legislation Promoting Small Business Growth
New Act Provides Greater Clarity for Small Businesses that Use PEOs
Nashville, TN—The National Association of Professional Employer Organizations (NAPEO) today thanked lawmakers for passing industry-supported Senate Bill 2633 that was signed into law. The bill ensures that small businesses are not unfairly disadvantaged because they choose to use a professional employer organization (PEO) to meet their human resources needs. There are more than 13,000 workers in Tennessee receiving HR services through a PEO. A PEO provides payroll, benefits, and HR services to small and mid-sized businesses.
“NAPEO thanks Senator Jack Johnson and Representative Ryan Haynes for their leadership on this issue. Not only will this legislation better protect small businesses that engage PEOs to provide HR services to workers, but the new law streamlines the PEO registration process and provides a common sense approach for complying with those requirements,” said Adam Peer, NAPEO’s state government affairs director. Senate Bill 2633 passed overwhelming in both chambers.
PEOs partner with existing small businesses to manage all aspects of their human resources. This includes both employee benefits such as healthcare, Section 125 plans, retirement plans, as well as preparing payroll and remitting employment taxes. By providing this full-service HR solution to employers, a PEO allows small businesses to focus on its core competencies and grow their business.
The new act allows PEOs to meet their registration requirements electronically and provide greater flexibility on how to demonstrate compliance to regulators. It also ensures that small businesses that are otherwise qualified for tax credits or economic incentives are not disqualified because they engage a PEO.
“Streamlining the regulations and making registration more efficient allows me to better help my clients grow their business,” said Andrea Ball, President of HR Comp of Powell, TN.
Thirty-nine states regulate PEOs. This legislation brings Tennessee current with most other states that regulate PEOs as well as current industry practices. Pursuit of this legislation is a part of NAPEO’s Millennium Project that seeks to enact uniform state legislation for the industry.
Formed in 1984, the National Association of Professional Employer Organizations (NAPEO) is the national trade association for the PEO industry and the voice of the PEO industry. PEOs provide payroll, benefits and other HR services to mostly small and medium-sized businesses. NAPEO has approximately 500 members operating in all 50 states, representing more than 85% of the industry's estimated $81 billion in gross revenues. NAPEO’s PEO members range in size from start-up PEOs to large publicly held companies. For more information about NAPEO, please visit www.napeo.org. You can also follow us on Twitter @NAPEO. NAPEO Contact: Adam Peer 703-739-8179