Today, the National Association of Professional Employer Organizations (NAPEO) thanked Texas Governor Greg Abbott for signing a bill that protects small businesses from paying double employment taxes. Small businesses across Texas that enter into a relationship with a professional employer organization after January 1st will now be protected from overtaxation.
“We thank Governor Abbott for his support of this bill, which will enable PEOs to continue to help small businesses in Texas grow and thrive while eliminating what was essentially a double tax on small business and maintaining the integrity of the UI trust fund at the same time,” said NAPEO President and CEO Pat Cleary. “PEOs provide valuable services to the small business community and play a role in the creation of Texas jobs, so enactment of this legislation was critical to the continued strength of the small business sector in the state.”
House Bill 3150 is also in line with the federal Small Business Efficiency Act (SBEA), which became law in December of 2014. Under the rules of SBEA, wage bases tied to federal wage-based employment taxes will not be required to restart when the employer either leaves or joins a SBEA-certified professional employer organization.
Professional employer organizations provide payroll services and other human resources benefits to small and medium sized businesses. The National Association of Professional Employer Organizations has 148 members doing business in Texas with many small businesses which employ more than 132,000 people.
“Governor Abbott has always been a strong proponent of small business, and this legislation is yet more evidence of his commitment to making Texas a great state for small business,” said Cleary.