Business & Public Benefits
Adequately capitalized and well-managed PEOs provide valuable services to small to mid-size businesses and therefore further public interests. But because PEOs are capable of aggregating fiduciary responsibility on behalf of their clients, public interests must be protected from incompetent or unscrupulous operators.
Since its founding in 1995, ESAC has successfully detected and preemptively resolved financial and operational issues for accredited PEOs before such issues developed into a default. If a developing issue could not be resolved, ESAC has provided early warning to the PEO’s clients and to participating agencies in states in which the PEO has operations.
In addition to ensuring an accredited PEO’s compliance with important ethical, financial and operational standards, ESAC provides over $15 million of financial assurance backing each accredited PEO’s payment of wages, payroll taxes, health & workers’ compensation insurance premiums and contributions to employee retirement plans. This assurance is provided through an individual surety bond for each PEO plus a $15 million bond providing excess coverage. All bonds are held in trust at a major national bank for the benefit of PEO clients, employees, taxing authorities and insurers in the unlikely event of a default by an accredited PEO.