Federal 2010 Budget Provisions Effect Employee Leasing and PEO Arrangements.

Bruce Silver
Employers Rx LLC

President Barak Obamas recently announced 2010 budget proposal contains some payroll-related provisions that will have a major impact on the way that payroll taxes are reported after December 31, 2009.
Currently, there is uncertainty as to whether the employee leasing company or its client is liable for unpaid federal employment taxes arising with respect to wages paid to the client’s workers. When an employee leasing company or professional employer organization files employment tax returns using its own name and employer identification number, but fails to pay some or all of the taxes due, or when no returns are filed with respect to wages paid by a taxpayer that uses an employee leasing company, there can be confusion as to how federal employment taxes are assessed and collected.

The proposal establishes standards for holding employee leasing companies jointly and severally liable with their clients for federal employment taxes. The proposal also sets standards which will place responsibility for, and hold employee leasing companies and PEOs solely liable, for payment of taxes in some cases. The provision would be effective for employment tax returns required to be filed with respect to wages paid after December 31, 2009.

Employers Rx Among Odesk.com's 100 Best Outsourcing Blogs

HR Outsourcing consulting firm Employers Rx LLC, is proud to announce that their blog, HR Outsourcing Solutions, was included among the top blogs in the HRO and PEO field. The blog was recently named by Odesk.com as one of their 100 Best Outsourcing and Offshoring Blogs, and was recognized as one of only four in the category of Human Resources. Odesk.com’s Tamara Rice observed “Of course, Employers Rx is not just offering their services, but advice for HRO agents too. Go straight to this HR outsourcing archive and start reading–not all articles are original content, but all are relevant.”. Also honored were blogs from HR Outsourcing, Outsourcing-HR, and industry-leading professional employer organization TriNet HR.

The popular blog, HR Outsourcing Solutions, has been an informative online resource from it’s first entry in July 2007. On an early Sunday morning, company founder Bruce Silver sat down at his computer. “I had just finished reading an article on Bnet.com about Google’s website Blogger. I came up with the crazy idea that I could do that too. The result wasn’t pretty, but it was a start” he said. From that time forward the blog has provided it’s readers with helpful tips for small business owners and entrepreneurs. Topics have included saving on group health insurance, HR compliance, payroll, workers compensation, and how to shop for an employee leasing company or professional employer organization.

HR Outsourcing Solutions will be incorporated into their newly redesigned Employers Rx LLC website, which is scheduled for launch next month. Make sure to visit us by bookmarking our website: http://www.employers-Rx.com.