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Insperity Receives CPEO Designation from IRS

Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America’s best businesses, today announced that Insperity PEO Services, L.P., has been named a Certified Professional Employer Organization (CPEO) by the United States Internal Revenue Service (IRS). This designation is a result of the enactment of the Small Business Efficiency Act (SBEA), which creates a federal regulatory framework for the payment of wages to worksite employees and the reporting and remittance of payroll taxes on those wages paid by CPEOs under the statute. The certification provides additional regulatory certainty for CPEOs and their customers, which further enhances the value of Insperity’s PEO services.
“This recognition from the IRS represents a significant milestone for Insperity and the industry we helped to establish more than 30 years ago,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “We will no longer have to restart payroll tax wage bases for businesses that become new CPEO customers throughout the year. In addition, this will reduce our costs related to these payroll tax payments increasing profitability, and allow for more favorable pricing to prospects enhancing sales.”
The SBEA provides CPEOs with successor employer status for federal payroll taxes. This eliminates the potential for double taxation of FICA and FUTA when a business contracts with a CPEO during the year.
Additionally, the SBEA clarifies businesses’ continued eligibility for specified federal tax credits while utilizing CPEO services. This removes another sales hurdle for Insperity as it assures business prospects that they will not lose their eligibility for these federal tax credits solely by becoming a CPEO customer.
About Insperity
Insperity, a trusted advisor to America’s best businesses for more than 31 years, provides an array of human resources and business solutions designed to help improve business performance. Insperity® Business Performance Advisors offer the most comprehensive suite of products and services available in the marketplace. Insperity delivers administrative relief, better benefits, reduced liabilities and a systematic way to improve productivity through its premier Workforce Optimization® solution. Additional company offerings include Human Capital Management, Payroll Services, Time and Attendance, Performance Management, Organizational Planning, Recruiting Services, Employment Screening, Financial Services, Expense Management, Retirement Services and Insurance Services. Insperity business performance solutions support more than 100,000 businesses with over 2 million employees. With 2016 revenues of $2.9 billion, Insperity operates in 61 offices throughout the United States. For more information, visit