Following are a few frequently asked questions from PEOs interested in ESAC's accreditation services.
Please
contact us if you have other questions or need additional information.
Are startup PEOs eligible for accreditation?
Startups can qualify for accreditation by using ESAC standards as a foundation for their new operations and by providing evidence of sufficient capital and reasonable financial projections. Accreditation provides a great opportunity for start-ups to develop a solid operational foundation, obtain valuable assistance with regulatory compliance requirements, increase sales using proven sales and marketing tools, and benefit from the credibility that comes from ESAC's independent verification of your PEO's reliability.
Will my competitors who serve on the ESAC board see all the confidential information about my PEO?
No one affiliated with any PEO is involved in ESAC's application review or approval processes. Completed applications are reviewed and approved by ESAC's Independent Directors who are not affiliated with any PEO.
I want to apply for accreditation but what happens if my PEO doesn't meet all the ESAC standards?
If your PEO and Responsible Persons have a verifiable history of ethical and legal conduct and financial reliability, ESAC can work with you to successfully complete the application process and help you resolve items required for approval and ongoing accreditation.
I’ve been told that ESAC requires quarterly financial audits in addition to annual audits.
An independent CPA is required to audit your PEO's financial statements only on an annual basis. Internally-produced financial statements are submitted for quarterly ongoing monitoring.
My PEO has a self-insured and/or loss-sensitive plan. Can I qualify?
There is no prohibition against self-insured or loss-sensitive policies or plans, so long as adequate reserves are reflected in your PEO's financials according to ESAC's standards and your plan is in compliance with state requirements.
Is there an additional charge per state for ESAC's regulatory compliance services?
ESAC's regulatory compliance services are included in the cost of your PEO's annual accreditation fee. Your PEO will still pay each state's licensing/registration fees as required by state statutory requirements and/or regulations.
Which credential should I choose: ESAC accreditation or IRS certification?
IRS certification focuses on payment of federal employment taxes, federal payroll tax liability certainty and clarification of eligibility for IRC 3511(d)(2) federal tax credits for qualified customer work sites and employees.
Because PEO clients are equally concerned with confirmed payment of all key employer liabilities, ESAC's accreditation processes verify payment of not only federal employment taxes, but also employee wages, state employment taxes, health and workers’ compensation insurance, and retirement plan contributions. ESAC's >$15M financial assurance program assures accredited PEO clients of the payment of these important liabilities. Accreditation also confirms that all affiliated PEO entities are financially reliable and meet ethical and operational industry standards.
PEOs have told us that their ESAC accreditation provides the most sales and client retention values, but several of these PEOs have also elected to hold both credentials to maximize options for meeting potential requests from prospective clients. Click here for more information about the requirements and values of these two credentials.