- Cost are up.
- Administration burden and complexity of compliance is a nightmare for smaller employers.
- The IRS has strengthened the common ownership laws and has increased audits to assure employers with 50 or more employees are not shifting employees into corporations owned by friends / associates in order to avoid compliance with ACA.
- As a result, employers with 50 or more employees have looked for alternatives and PEO’s have grown substantially since the roll out of the ACA.
- PEO plan guidance and administration can reduce employer worry about the ACA. The large group contract, coupled with good risk selection can also lower medical plan costs. Lower costs plus reduced administration provides a powerful value.
