New Federal Legislation Enhances Value of Insperity Services and Removes Sales Obstacles
December 17 2014 - 1:23PM
Business Wire
Insperity, Inc. (NYSE: NSP), a leading provider of human
resources and business performance solutions for America’s best
businesses, today commented on the U.S. Congress’ approval of the
federal Small Business Efficiency Act (SBEA), which will provide
additional regulatory certainty and creditability to Professional
Employer Organizations (PEO) and enhance the value of Insperity’s
PEO services. The SBEA passed the Senate along with the tax
extenders bill Tuesday evening and is on its way to the president
for signature.
“The passage of the Small Business Efficiency Act represents a
major milestone for the PEO industry in general and Insperity in
particular, providing a stamp of approval on the industry we helped
to establish in 1986,” commented Paul J. Sarvadi, Insperity
chairman and chief executive officer. “The SBEA will provide
certified PEOs with successor employer status for federal payroll
taxes which eliminates the potential for double taxation of FICA
and FUTA when a business contracts with a PEO during the year. When
the SBEA is fully implemented, we expect this provision to reduce
our first year costs associated with this double taxation and
eliminate a sales hurdle that we have historically faced during the
year with many prospects.”
Mr. Sarvadi added, “We commend the action of Congress in showing
its support of small and medium-sized businesses throughout America
by passing this significant legislation and thank all of the
co-sponsors of the legislation. In particular, we would like to
acknowledge the leadership of Congressman Kevin Brady, who has long
recognized the vital role that these businesses serve in our
communities and the many ways in which a PEO such as Insperity
helps businesses succeed.”
“For over 10 years, Insperity has been strongly advocating for
the passage of a federal PEO bill, and we are very pleased that the
SBEA has become a reality,” said Sarvadi. “The SBEA will provide a
federal regulatory framework and certification program in which
defined financial standards will enhance the reputation and value
of the PEO industry and provide assurances to clients, prospects
and their advisors.”
Additionally, the SBEA will clarify businesses’ continued
eligibility for federal tax credits while utilizing certified PEO
services. Mr. Sarvadi further added, “This removes another sales
hurdle as it provides assurance to our business prospects that they
will not lose their eligibility for federal tax credits when
becoming our client.”
The SBEA was originally included as part of H.R. 647, the
Achieving a Better Life Experience (ABLE) Act of 2014, which
overwhelmingly passed a vote in the House of Representatives. The
bill was then merged with H.R. 5771, the Tax Increase Prevention
Act of 2014, which also passed the House and then the Senate.
About Insperity
Insperity, a trusted advisor to America’s best businesses for
more than 28 years, provides an array of human resources and
business solutions designed to help improve business performance.
Insperity® Business Performance Advisors offer the most
comprehensive suite of products and services available in the
marketplace. Insperity delivers administrative relief, better
benefits, reduced liabilities and a systematic way to improve
productivity through its premier Workforce Optimization® solution.
Additional company offerings include Human Capital Management,
Payroll Services, Time and Attendance, Performance Management,
Organizational Planning, Recruiting Services, Employment Screening,
Financial Services, Expense Management, Retirement Services and
Insurance Services. Insperity business performance solutions
support more than 100,000 businesses with over 2 million employees.
With 2013 revenues of $2.3 billion, Insperity operates in 57
offices throughout the United States. For more information,
visit http://www.insperity.com.
The statements contained herein that are not historical facts
are forward-looking statements within the meaning of the federal
securities laws (Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934). You can
identify such forward-looking statements by the words “expects,”
“intends,” “plans,” “projects,” “believes,” “estimates,” “likely,”
“possibly,” “probably,” “goal,” “opportunity,” “objective,”
“target,” “assume,” “outlook,” “guidance,” “predicts,” “appears,”
“indicator” and similar expressions. Forward-looking statements
involve a number of risks and uncertainties. In the normal course
of business, Insperity, Inc., in an effort to help keep our
stockholders and the public informed about our operations, may from
time to time issue such forward-looking statements, either orally
or in writing. Generally, these statements relate to business plans
or strategies, projected or anticipated revenues, earnings, unit
growth, profit per worksite employee, pricing, operating expenses
or other aspects of operating results. We base the forward-looking
statements on our expectations, estimates and projections at the
time such statements are made. These statements are not guarantees
of future performance and involve risks and uncertainties that we
cannot predict. In addition, we have based many of these
forward-looking statements on assumptions about future events that
may prove to be inaccurate. Therefore, the actual results of the
future events described in such forward-looking statements could
differ materially from those stated in such forward-looking
statements. Among the factors that could cause actual results to
differ materially are: (i) adverse economic conditions; (ii)
regulatory and tax developments and possible adverse application of
various federal, state and local regulations; (iii) the ability to
secure competitive replacement contracts for health insurance and
workers’ compensation contracts at expiration of current contracts;
(iv) increases in health insurance costs and workers’ compensation
rates and underlying claims trends, health care reform, financial
solvency of workers’ compensation carriers, other insurers or
financial institutions, state and federal unemployment tax rates,
liabilities for employee and client actions or payroll-related
claims; (v) failure to manage growth of our operations and the
effectiveness of our sales and marketing efforts; (vi) changes in
the competitive environment in the PEO industry, including the
entrance of new competitors and our ability to renew or replace
client companies; (vii) our liability for worksite employee
payroll, payroll taxes and benefits costs; (viii) our liability for
disclosure of sensitive or private information; (ix) our ability to
integrate or realize expected returns on our acquisitions; (x)
failure of our information technology systems; and (xi) an adverse
final judgment or settlement of claims against Insperity. These
factors are discussed in further detail in Insperity’s filings with
the U.S. Securities and Exchange Commission. Any of these factors,
or a combination of such factors, could materially affect the
results of our operations and whether forward-looking statements we
make ultimately prove to be accurate.
Except to the extent otherwise required by federal securities
law, we do not undertake any obligation to update our
forward-looking statements to reflect events or circumstances after
the date they are made or to reflect the occurrence of
unanticipated events.
Insperity, Inc.Investor Relations Contact:Douglas S.
Sharp, (281) 348-3232Senior Vice President of Finance,Chief
Financial Officer and TreasurerorNews Media Contact:Jason
Cutbirth, (281) 312-3085Senior Vice President of
Marketingjason.cutbirth@insperity.com
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