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NAPEO’s Support of the Small Business Efficiency Act

February 2, 2012

On Monday, January 23, 2012, the National Association of Professional Employer Organizations (NAPEO) President Patrick J. Cleary participated in a conference call with the President of the United States, Barack Obama and Director of the National Economic Council, Gene Sperling. During the call they discussed issues vital to the small business market, which Obama has recognized is the backbone of the American economy.

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In a follow-up letter, Cleary stressed the importance of the Small Business Efficiency Act, which, if passed, would benefit Professional Employer Organizations (PEOs) and their clients. Clearly also outlined some of the strengths of PEOs and the services they offer to small businesses.




The following are some of the points Cleary outlined in his letter to President Obama:


  • PEOs provide enhanced access to healthcare for as many as 4 to 6 million people
  • PEOs allow their small business clients to offer benefits on par with their large-employer counterparts
  • By handling issues of compliance, payroll and benefits, PEOs allow small businesses to focus on their core mission and growth
  • Almost 15% of all private-sector employees in the state of Florida are employed by PEOs
  • While the Small Business Administration estimates that workers at small businesses with access to 401(k) plans dropped from 28% to just 19%, an estimated 95% of workers in PEO arrangements have access to pension plans
  • PEOs are popular in many of the industries that you have become a national priority, including tourism, construction and manufacturing
  • Some 38 states have adopted some form of NAPEO’s model legislation, sanctioning the PEO model in their states.
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