Small Business Owners Rejoice at Some Sense in Government
Bemoaning the lack of empathy for small business in the corridors of power in Washington D.C. has long been a futile enterprise. For a very long time, a seemingly endless litany of laws and regulations would routinely spew forth from government agencies like the IRS. The laws made sense in an ivory tower sort of way but were often overbearing and impractical. In short, while the politicians and bureaucrats set policy, they rarely considered or understood the ramifications that their policies would have on their unwitting subjects.
Fortunately, there are some Congressmen who do listen to their constituents. Recently, a bipartisan bill, the Small Business Efficiency Act (S. 479), was introduced by Senators Chuck Grassley (R-IA) and Bill Nelson (D-FL) with the aim of reducing some of the administrative headaches on small and medium sized businesses.
The bill is intended to clarify some of the uncertainties that surround the business service entities known as Professional Employer Organizations (PEOs). These private companies provide a wide array of services to the small business community such as HR and benefits administration, payroll services and tax compliance.
In particular, the bill sets a voluntary certification program for the PEOs. The certification requires bonding and independent financial audits but, once completed, the PEOs can completely administer the payroll tax aspects of a company. In addition, PEOs bring greater negotiating power when dealing with healthcare providers, expert recruiting and training procedures and expertise in the latest changes in tax and employment law.
These benefits are a huge boon to small business. Through them, PEOs develop better and more satisfied employees, ensure greater compliance with company and governmental policies and leave management free to concentrate on growing the business instead of just administering it. It’s a winning solution for everyone and one that doesn’t often appear in Washington.
