Daily Tax Update - June 3, 2016: IRS Issues Guidance on Application Process for CPEO Program

IRS Issues Guidance on Application Process for CPEO Program:  Today, the IRS issued Revenue Procedure 2016-33, which sets forth detailed procedures for applying to be a certified professional employer organization (CPEO).  Under the Stephen Beck, Jr., Achieving a Better Life Experience (ABLE) Act of 2014, the IRS is required to establish a voluntary certification program for professional employer organizations.  Such organizations manage various payroll administration and tax reporting responsibilities for their business clients and are usually paid a fee based on payroll costs.  The IRS will begin accepting CPEO applications beginning on July 1.  A future revenue procedure will address requirements for a CPEO to remain certified and the procedures relating to suspension and revocation of CPEO certification.