ESAC Program Overview

About ESAC

The Employer Services Assurance Corporation (ESAC) provides an accreditation and financial assurance program for the professional employer organization (PEO) industry. An independent non-profit corporation, ESAC is managed by a board of directors that includes PEO industry attorneys and CPAs as well as independent directors representing over 100 years of combined PEO industry regulatory experience. ESAC has been building integrity and trust for the PEO industry since 1995.

Today, ESAC is recognized nationally as the gold standard for PEO reliability and financial assurance!

ESAC Mission and Financial Assurance

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 ensures that accredited PEOs' performance of key employer responsibilities to their clients, employees, insurers and regulatory authorities is backed by over $15 million of surety bonds held in trust at a national bank!

ESAC Accreditation Services

ESAC's accreditation process verifies a PEOs' ongoing financial solvency and compliance with government regulations and important industry standards that demonstrate the PEO's financial stability, ethical business conduct and adherence to operational standards and regulatory requirements.

Accredited PEOs provide ESAC with 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 is then verified by independent financial and legal advisors, ESAC's surety carrier and ESAC staff, under the oversight of ESAC's independent directors.

Verifying a PEO's accredited status reduces the amount of due diligence required by prospective PEO clients, decreases the compliance verification burden for regulatory authorities, and is also now accepted by numerous states as a way to facilitate PEO licensing!