Full-Service HR

The Value of ESAC Accreditation

Ella Baker
The Value of ESAC Accreditation
Reading time 3 Mins
Published on May 14

Assuring the quality of your PEO partner

Not every Professional Employer Organization is willing to go the extra mile to prove its dedication to providing financial assurance and confidence in services, as reflected in the Employer Services Assurance Corporation accreditation.

Of the 780 to 980 PEOs currently in operation, fewer than five percent have achieved the gold standard in accreditation.

What is ESAC?

As the official accreditation and financial assurance organization of the Profession Employer Organization industry, the Employer Services Assurance Corporation (ESAC) is an independent nonprofit organization managed by a board of directors that includes PEO industry attorneys, CPAs and independent directors. With more than 100 years of combined PEO industry experience, the industry experts work with the independent directors to evaluate all candidates for accreditation.

The independent directors make the final decisions regarding PEO accreditation. Demonstrating a PEOs financial stability, ethical business conduct and adherence to operational standards and regulatory requirements, the standards for accreditation are high and only achieved by about five percent of PEOs.

According to their website, ESAC’s mission is to help the PEO industry reach its full potential in supporting small and mid-size businesses by building integrity and trust and providing assurance to businesses by:

  • Establish standards for ethical conduct, professional competency, and financial and operational reliability
  • Provide a credible program of accreditation based on independent verification of standards compliance, so PEOs can voluntarily demonstrate they meet the industry’s gold standard of reliability
  • Provide financial assurance and notification programs to assure clients, employees, insurers, and government authorities that accredited PEOs are meeting their contractual and fiduciary responsibilities
  • Provide services to make PEO compliance with state and federal laws and regulations more efficient and reliable
  • Educate the employer services industry, the public, and state and federal regulators about the importance of ESAC’s mission

Importance of Accreditation for Business Owners

Providing independent verification and financial assurance of the reliability of your PEO, ESAC accreditation requires compliance with over 40 best practices and quarterly verifications of key functions, including federal and state employment taxes, workers’ compensation premiums, retirement plan contributions, and others. PEO service providers voluntarily undergo the rigors of the certification process and are bonded at their own expense.

The ESAC logo on a PEOs website is a badge of trust and confidence, ensuring that a PEO can meet the needs of your company. ESACs website allows you to verify the accreditation and continued status of your PEO on their website. If your partner PEOs accreditation is terminated or lapses for any reason, ESAC will notify you.

A partner you know you can trust

Accredited by ESAC and Certification Institute, and backed by a $3 million Employment Practices Liability Insurance policy, Sheakley’s 120 years of combined PEO experience and expertise are unrivaled in the industry. As your company continues to grow and become subject to more stringent labor laws, Sheakley’s PEO services allow you to remain compliant and focused on the daily demands of your business.

Learn more about how Sheakley’s PEO services can give your business the competitive advantage or contact us today for free consultation. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. Join in the discussion by commenting below.

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