A YEAR OF MOMENTUM

As we close out 2025, I find myself reflecting on a year defined not just by progress, but by momentum—real, sustained momentum that is shaping the future of the PEO industry. We started the year by setting organizational and industry priorities, and I’m proud of the meaningful progress we’ve already made across all four pillars of our strategic plan.

It’s been a landmark year for our federal advocacy efforts. H.R. 3223—the bill that clarifies liability for payroll tax credit claims—was introduced with strong bipartisan support which continues to grow with a Senate companion bill on the way. This is one of the most significant federal policy advances our industry has seen in years, and I look forward to moving the bill across the finish line next year. Additionally, we engaged with the IRS, OMB and the Department of Labor to strengthen our standing as a trusted, credible voice in Washington. Our efforts helped secure IRS commitments on penalty relief for new “no tax on tips” requirements, and public acknowledgment from key members of Congress about the need for IRS modernization.

Through nearly 150 meetings with policymakers on Capitol Hill we expanded our network of PEO champions and broadened the level of understanding about the value PEOs bring to small businesses. NAPEO PAC continues to be our strongest asset to build these important relationships. We participated in 68 fundraisers, ensuring lawmakers hear directly from us about the issues that matter most. I’m grateful for everyone who supported NAPEO PAC this year. Together, we raised nearly $180,000 which makes 2025 our second-strongest fundraising year ever.

Our advocacy success was not limited to Washington. We passed pro-PEO legislation in Kansas, Oregon (twice), Montana, New Jersey and Texas; we defeated threats to PEOs in Indiana, Maine and Nebraska. As if that wasn’t enough, we made positive progress on pro-PEO initiatives in California and Georgia. Our model act efforts moved further than ever before in these two states, laying strong foundations for success in 2026.

This year’s annual industry research report examined PEO clients in the most comprehensive study to date. The report dissected PEO client penetration by each Congressional district; data that will amplify our advocacy efforts. We also undertook an industry-wide communications audit for the first time ever. These findings will underpin our efforts to define and drive a compelling industry narrative. The new website we launched in April serves as the backdrop for all NAPEO resources and information about PEOs. Traffic has surged to the site since the launch, indicating you’re finding more value than ever before.

Of course, delivering member value lies at the core of everything we do. With record attendance at our Annual Conference & Marketplace, nearly 9,000 profiles now active in our database, growing participation in WIN and NextGen and a record year for NAPEO Gives Back, member engagement is stronger than ever.

All of the success I describe above is indicative of a high-performing team and an engaged membership that is in lockstep as we tackle our industry’s highest priorities. And that is what I’m most proud of. Thank you for your partnership and your continued commitment to playing team ball: there is no limit to what we can accomplish together. 2025 was a year of momentum. In 2026, we’ll turn that into impact.