PEO and Staffing
2023 RECAP
2023 Recap
PEOs and Staffing Heard “Will You Delete My Data?” in 2023 One challenge many PEOs and staffing agencies faced in 2023 came from a deceptively critical request: “Will you delete my data?” As more people are armed with information about their data privacy rights, and lawmakers and regulators continue to create additional obligations for businesses, this became a crucial challenge to manage this past year – especially since PEOs and staffing agencies face unique challenges given the amount and types of data they maintain. We provided some steps to consider when preparing and responding to such a question. Pay Transparency Rules Created Unique Challenges Pay transparency remained one of the hottest trends impacting the workforce in 2023, and staffing companies and PEOs needed to keep up with new laws and evolving expectations to stay compliant and competitive this past year. This created significant technology challenges for the industry. Pay transparency affects all aspects of workplace relationships – including hiring, recruitment, and retention efforts; supervision and leadership; and compensation and benefits. We gave you three questions to set you on the right path. Employee Benefits and Payroll Tax Served as a Value Proposition Employee benefits are a major part of the value proposition offered by most PEOs and staffing companies. In addition to unlocking access to Fortune-100-style benefits for the employees of small- and medium-sized businesses, PEOs and staffing companies continue to shoulder the extensive compliance burdens of employees benefits, which increase each year with new legislation, such as SECURE 2.0. However, the silver lining of SECURE 2.0 will be the ability of PEOs and staffing companies to enhance the features of their 401(k) plans in ways that will help to attract and retain clients and talent. Payroll tax services are also a key part of the value proposition for PEOs and staffing companies. With the continued payroll tax complexity driven by remote work and payroll tax credits like the ERTC, PEOs and staffing companies will continue to drive business with payroll tax solutions.
Sheldon Blumling Partner Irvine sblumling@fisherphillips.com
John Polson Chairman & Managing Partner Irvine/Los Angeles jpolson@fisherphillips.com
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