The "One Big Beautiful Bill Act" (OBBBA) has fundamentally changed the business landscape, creating new opportunities and compliance requirements that will set apart businesses that are prepared, and those caught off-guard. If you're working with a Professional Employer Organization (PEO), you might assume you're covered. But not all PEO providers are created equal, and the difference in how they are prepared to handle this large piece of new legislation could make or break your business's success.
The OBBBA is a comprehensive overhaul that touches every aspect of HR services, including payroll, benefits, and compliance. For businesses, the stakes couldn't be higher. A PEO that's scrambling to understand new tax credits could cost you thousands in missed opportunities. One that's unprepared for enhanced enforcement could leave you exposed to devastating audits. How can you stay ahead of the curve? Here are four questions to ask your PEO provider to see if they are ready for the new rules:
1. How Are You Handling the New Tax Credits?
The legislation introduces multiple new tax credits that can significantly impact your bottom line. But these benefits are only valuable if your PEO knows how to properly track, document and claim them on your behalf.
Ask specifically about their updated payroll systems, how they'll track qualifying expenses, and whether they've already implemented the changes needed to maximize your credits..
2. What's Your Plan for Enhanced Compliance?
The bill strengthens enforcement across multiple areas, making rigorous compliance more critical than ever. Your PEO solutions provider should have already conducted proactive audits and implemented enhanced verification processes.
3. How Are You Adapting Our Benefits Strategy?
The legislation creates new healthcare options that could dramatically improve your benefits offerings and/or reduce costs. Your PEO should be actively analyzing whether these new options are right for your business, and whether your business can capitalize on these benefits sooner rather than later.
4. How Will You Keep Us Apprised of Future Changes?
Your PEO solutions partner should be your early warning system for what's coming next. They should have a clear process for monitoring regulatory changes, staying ahead of them, and updating clients proactively.
What happens if your current PEO can't confidently answer these four questions? Consider what's at stake: missed tax opportunities, compliance penalties, competitive disadvantage, and administrative burden that defeats the purpose of outsourcing HR services. It may be time to consider a change. BestFit PEO Solutions can help you evaluate whether your current PEO is the right fit and maximize your competitive advantage in a changing business-opportunity environment.
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