2025 HALF-TIME REPORT

As we head into the second half of the year, it’s worth reflecting on the progress we’ve made so far. Just to hit a few highlights: we’ve completely turned the tide in Oregon on workers’ comp. and UI reporting, celebrated the third annual National PEO Week, convened the first NAPEO Operations Workshop and NextGen Leadership Workshop, introduced a new strategic plan, and our PAC is on pace for a record-breaking fundraising year. As if that wasn’t enough to keep us busy, we also just wrapped up our annual PEO Capitol Summit. In addition to providing quality legal education, this year’s event offered an opportunity to advocate for the first pro-PEO bill to be introduced in the U.S. House of Representatives since the SBEA.

I appreciate all of you who came to Washington and took to Capitol Hill to push for H.R. 3223.

In mid-May, Reps. Mike Thompson (D-CA) and Beth Van Duyne (R-TX) introduced a bill which would codify in federal statute that tax credit liability belongs with those who benefit from it, not a PEO. We’re optimistic this bill will be included in a year-end tax administration bill.

The introduction of this bill was a direct result of a sustained advocacy effort, including the strategic use of NAPEO PAC dollars. We’re on pace to raise more money than ever in a single year thanks to the enthusiasm and commitment all of you share for advancing industry interests. I hope more of you will consider becoming involved with NAPEO PAC; we need all the support we can get.

Also on the legislative front, a bill in Oregon would codify existing PEO unemployment insurance reporting practices (and prevent a change to solely client level reporting). It has passed the House and the Senate and (at the time of writing) only awaits the Governor’s signature. It will be signed by the end of June and effective September 27, 2025. This effort has been a labor of love, and I appreciate all of you who have stepped up and engaged in the process.

Speaking of member engagement, our inaugural Operations Workshop combined our previous Risk Management Workshop and CFO Seminar events into one big, beautiful event. The new format allows for improved content and educational programming and allows us to serve a wider segment of members. The event also featured our first NextGen Leadership Workshop which offered a forum for future industry leaders to network and learn from industry veterans. I look forward to seeing this initiative grow and encourage all of you in the NextGen group (under 45 years old) to participate. Stay tuned for 2026 location and dates!

The momentum and success we’ve seen so far this year reflects the energy that you and your peers bring to the association and industry. We’ve worked hard (with the board and leadership) to develop a new strategic plan to channel this energy and guide us forward the next few years. I’m confident the plan that our board unanimously adopted in May sets us up for continued growth and success. NAPEO HQ has been busy all year long, but here’s to an even stronger second half!