ESAC Program Overview

About ESAC

ESAC builds integrity and trust and provides assurance for the professional employer organization (PEO) industry. ESAC accomplishes its mission through programs of:

  • Accreditation,
  • Financial assurance, and
  • Services to make regulatory compliance more efficient and effective.

ESAC's accreditation program verifies accredited PEOs' ongoing financial solvency and compliance with government regulations and other important industry standards. The performance of key employer responsibilities by accredited PEOs is backed by bonds providing financial assurance for clients, worksite employees, insurers and regulatory authorities.

  • ESAC's mission for the PEO industry is similar to the missions of FDIC for the banking industry, SIPC for the securities industry, and state insurance guaranty associations for the insurance industry.
  • ESAC accreditation has been recognized as the PEO industry's gold standard since 1995 and is accepted by numerous states as a way to facilitate PEO licensing.
  • Accreditation reduces the amount of due diligence required by PEO prospects and clients and decreases the compliance verification burden for regulatory authorities.
  • Accredited PEOs are required to demonstrate financial stability, ethical business conduct and adherence to operational standards and regulatory requirements.
  • Financial assurance to clients, worksite employees, insurers and regulatory authorities is provided through $1 million individual surety bonds covering each accredited PEO plus a $10 million excess surety bond covering all accredited PEOs.
  • Accredited PEOs provide comprehensive compliance data including audited financial statements, quarterly independent CPA verification of payment of taxes, benefit contributions and insurance premiums, and evidence of required employer insurance coverages.
  • Compliance verification is provided by financial and legal advisors, ESAC's surety carrier and ESAC staff; and is overseen by ESAC's board of directors, including independent directors representing over 100 years of combined regulatory compliance experience.