Definition
A PEO certified by the IRS under a program created in 2014, which makes it solely responsible for federal employment taxes on wages it pays.
Certified PEO explained
IRS certification requires bonding, audited financials and background checks. For clients, a CPEO takes on federal employment tax liability for wages it pays, and federal wage bases generally don't restart when you join or leave a CPEO mid-year, which can avoid paying some taxes twice.
Certification belongs to a legal entity, not a brand. Check the IRS list for the entity that will sign your contract. Justworks, TriNet, Insperity, ADP TotalSource and Paychex PEO entities appear on the IRS list we checked.
Where Certified PEO comes up
Also referenced in: NAPEO · Mid-year transition