ESAC accreditation means a PEO is verified to be compliant with government regulations, including hiring, benefits and tax laws. Currently, only about 16% of PEOs are ESAC accredited. This doesn’t mean non-accredited PEOs are untrustworthy. Rather, ESAC accreditation can give you assurance about smaller and lesser-known companies that may not otherwise have a reputation.
It’s also important to point out that the federal government recently launched their own PEO certification process. Under the Small Business Efficiency Act (SBEA), the IRS has begun to monitor participating PEOs. Justworks was among the first PEOs to receive this certification in June 2017.