Why We Aim to Serve as Your Trusted Advisor
Posted on February 7, 2011 by Matt Meigs in Best Practices
There’s a payroll tax fraud case about to go to trial in Texas, where an executive is accused of keeping $66 million that should have gone to the IRS. As he operated under at least a dozen PEO names, the news certainly caught our attention, and we’re keeping tabs on any developments.
This news highlights why it’s really important for small business owners to do their homework before hiring a vendor, to ensure they’re dealing with a reputable company; in the PEO industry, best practices include having audited financial statements and ESAC accreditation, whose assurances are similar to the ones offered by the FDIC for the banking industry. These are examples of the ethical, financial, and operational checks and balances a business owner or manager can research to separate the legitimate vendors from the fraudulent ones.
At TriNet, we’re able to claim with credibility that we’re here to serve you as a trusted advisor in part because our financials are audited by Ernst & Young, and we are one of only 6 PEOs who have received continuous accreditation every year since ESAC’s founding in 1995. The situation highlighted in this case wouldn’t happen under TriNet’s watch.
It’s also important to highlight the last line of the article: “the clients of the PEOs would not be on the hook for the tax losses.” This is big. When a company aligns itself with a PEO, they absolve themselves of risk. The IRS has recognized our industry, and in the event of this type of situation, TriNet holds its clients harmless for these issues, and backs it up with insurance. For further explanation, check out page 8 of our white paper, “Financial Opportunities of Human Resources Outsourcing.”