Comprehensive, effective compliance verification
Strong PEOs give businesses reliable access to more efficient administrative systems, compliance with ever-changing employment laws, and help attracting and retaining the right employees. These services help strengthen local economies and serve public interests. But the current PEO regulatory framework has not proven reliable for detecting PEO issues that begin in another state before the problem unexpectedly impacts other states. And almost all PEOs operate in multiple states. Since 1995, ESAC’s compliance verification processes have reliably detected PEO issues regardless of entity or state of origin before they caused a default. In addition to verifying a PEO’s compliance with important ethical, financial and operational standards for all affiliated entities in all states of operation, ESAC provides over $15 million of financial assurance backing each accredited PEO’s payment of important employer obligations. There has never been a single claim although accredited PEOs pay billions of dollars of wages, payroll taxes, insurance premiums and contributions to employee retirement plans on behalf of their clients.
ESAC services for regulators
An increasing number of states are taking advantage of ESAC’s compliance verification services to strengthen their PEO registration or licensing processes. The benefits are compelling. The agency retains full authority to license, verify compliance, investigate, discipline and terminate licensure. ESAC provides, at no cost to the state, independent verification of the PEO’s compliance with not only the state’s requirements but also ESAC’s requirements and those of all other states in which the PEO is doing business. By monitoring the compliance of all related PEO entities in all states of operation, ESAC is able to detect a developing problem long before it irreversibly impacts the PEO’s financial solvency and works with the PEO (and with partnering states as needed) to resolve the issue. The state gains an added level of compliance verification at no additional cost, and agency staff has more time to focus on higher priority compliance issues.
Efficient integration and customization
ESAC’s eFile and electronic multi-state application and compliance (eMac) systems provide regulatory agencies with efficient access to additional levels of PEO data and compliance verification, including quarterly monitoring that escalates to monthly monitoring if a PEO has financial issues requiring frequent monitoring. ESAC’s services also can help states reduce manual data entry and paper storage of compliance filings, with these services customized to meet your agency’s needs.