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PEO PROVISION INCLUDED IN CAMP TAX PROPOSAL

House Ways and Means Committee Chairman Dave Camp released his proposed tax plan in early March. The document titled "The Tax Reform Act of 2014" included many provisions to change both business and personal tax reporting. Many of the provisions are aimed at simplifying the tax code and making things easier for US small businesses and American taxpayers.

Included in the many business proposals is PEO specific language similar to the earlier proposed tax bill, The Small Business Efficiency Act. The proposal discusses how a PEO would be treated as the employer of record and held responsible for the withholding and remittance of payroll taxes on behalf of their clients. Certified PEOs would be required to meet certain conditions (covering at least 85% of a client's workforce, annual independent financial statement audits, quarterly payroll tax compliance audits and posting of a bond). These provisions would give certainty to the PEO industry and provide assurances to new companies looking to outsource their employee administration.

Being an election year for many members of Congress, it is unlikely that a major tax proposal would be passed and enacted. However, many of the provisions included in the overall proposal have already sparked much debate within Congress and in the public. Some aspects of this tax proposal may end up becoming smaller bills that are more favorable to the overall populous and have a better chance of enactment in the new Congress.

For more details on the Camp tax proposal, please contact a member of the firm's National PEO Practice in Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040 or visit us on the web at www.uhy-us.com.

Published by UHY LLP News.

Our firm provides the information in this newsletter as tax information and general business or economic information or analysis for educational purposes, and none of the information contained herein is intended to serve as a solicitation of any service or product. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

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