Momentum Building for Small Business Efficiency Act of 2011

Lou Basso, president of Alcott HR Group is encouraged by the building support for the passage of the “Small Business Efficiency Act of 2011” (H.R. 2466). The bipartisan legislation, which was sponsored by Congressmen Mike Thompson (D-CA) and Kevin Brady (R-TX), and co-sponsored by Representative Paul Tonko (D-NY), a longtime advocate of small businesses, was recently introduced into the U.S. House of Representatives. Momentum is building among legislators and small business advocates who are urging its passage. Chief among the proponents of H.R. 2466 is the National Association of Professional Organizations (NAPEO) which also endorsed the proposed legislation.

According to Basso, who currently serves as NAPEO Leadership Council Chair for New York State, and a Member of the Board of ESAC, the PEO credentialing body and who has served as NAPEO President and Chairman of its Federal Legislation Committee, “The Small Business Efficiency Act is a vital piece of legislation and another step in the right direction following the passage of other PEO legislation at the state level, including our state’s  PEO registration legislation – the New York Professional Employer Act – for which Rep. Paul Tonko also took a leading role. H.R. 2466, in conjunction with state legislation and other industry measures such as ESAC accreditation, helps protect the interests of small businesses, enable them to rely on a PEO with confidence and focus on growing their businesses and creating new jobs for America.”

Basso noted that H.R. 2466 specifically would clarify the rights and responsibilities of PEOs pertaining to their role in withholding and remittance of payroll taxes and regulatory tax compliance on behalf of their clients.

Basso continued, “Since the New York Professional Employer Act became effective in September of 2002, we have seen a direct correlation between the growth and job creation of small businesses being served by registered PEOs. That legislation, which was championed by one of our state’s most dedicated small business and job growth advocates, Representative Paul Tonko (D-NY), recognized PEOs as being valuable catalysts to commerce through their services to small businesses. By establishing minimum requirements for companies who call themselves PEOs in New York State, the legislation and similar laws passed in other states gave further credibility to the industry and reassurance to businesses who want to establish relationships with fiscally responsible PEOs.”

He continued, “By providing statutory clarity in the Internal Revenue Code regarding the PEO arrangement and the PEO’s role in the employment tax withholding and remitting for its clients, H.R. 2466 takes it to another level and more importantly, provides even greater assurances for small businesses who want to turn over their HR and employee management function to a resource dedicated to this area.”

On November 18, 2011, Senators Charles Grassley (R-IA) and Bill Nelson (D-FL) introduced their version of the “Small Business Efficiency Act”, S. 1908 and then referred to the Committee on Finance.

Currently, there are an estimated 350 PEO members of NAPEO serving in all 50 states and representing over 90% of the industry’s entire 2010 $81 billion in gross revenues. Businesses in diverse industries turn to PEOs to alleviate the burden of employment administration and to access a comprehensive and competitively-priced employee benefits and services solution beyond what they could offer on their own. Through the services of a PEO, owners and executives of small businesses can improve their overall productivity by focusing on core revenue-producing functions, growing their business and, in turn, creating new employment opportunities for their region.

For additional information on the “Small Business Efficiency Act of 2011,” click here or visit www.napeo.org

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On November 23rd, 2011, posted in: Alcott News, Small Business Tips by
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