NEW YORK, NY--(Marketwired - Jun 5, 2017) - Justworks, the benefits, payroll, and HR support platform for small businesses, today announced that it has been recognized as a Certified Professional Employer Organization (CPEO) by the Internal Revenue Service (IRS). Under the Small Business Efficiency Act (SBEA), CPEOs are subject to stringent operational and financial standards. The CPEO designation is statutory recognition that Justworks has the wherewithal and integrity to protect its customers.
"We are proud to be one of the first PEOs to achieve this certification," said Justworks founder and CEO, Isaac Oates. "The federal government's formal recognition is a milestone for our industry, and by meeting this standard, Justworks has demonstrated that the services we provide to our customers are at the highest level."
The SBEA amended the Internal Revenue Code to recognize CPEOs and provide potential benefits to CPEO customers, such as:
- Confidence in working with a CPEO.
- CPEOs are subject to ongoing bonding, audits and IRS reporting.
- CPEOs can take on sole liability for the payment of federal payroll taxes.
- Confirmation of tax credits.
- CPEOs may apply the newly available R&D payroll tax credit on behalf of customers.
- CPEOs remain entitled to various employment-based federal tax credits.
- Limiting double taxation.
- CPEO customers are not required to restart federal payroll tax wage bases when joining or leaving a CPEO in the middle of a calendar tax year.
- CPEOs are entitled to FUTA tax reductions for customer SUTA contributions.
Justworks will continue to work fearlessly in supporting its customers, now with national recognition and benefits available to an IRS-certified PEO.
The IRS does not endorse any particular certified professional employer organization. For more information on certified professional employer organizations, please visit www.IRS.gov.
About Justworks
Justworks helps entrepreneurs bolster their growing businesses with transparency, integrity and simplicity in mind. Justworks believes in leveling the playing field and offering large company benefits for small businesses -- so they can provide the care their teams deserve and compete for top talent. The ultimate goal is to free entrepreneurs to focus on what matters: building their business and creating a great place to work. To learn more about Justworks' fast and simple-to-use HR and payments platform, visit www.justworks.com and follow us on Twitter @JustworksHR.
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