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PEOs
Regulators

Reduce errors…

Because of the complexity and manual nature of the PEO registration and licensing process, often coupled with client demands to serve new employees in another state with limited advanced notice, PEOs occasionally experience errors, omissions or late filings in one or more states. These instances of non-compliance not only result in warnings, citations and/or fines for the PEO, but also result in significant extra work for regulatory agencies.

While many of these violations are relatively minor in nature in terms of potential public harm, they all result in significant costs both to PEOs and regulatory agencies. Even more important is the fact that these relatively minor violations in terms of public harm take up a significant percentage of agency staff resources, which typically also are responsible for regulating other industries. If it were not for the frequency of relatively minor violations, these agency resources could more beneficially be focused on preemptively detecting compliance issues that have the potential of developing into a major default.

 

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