THE VALUE OF BELONGING

In February, I wrote that while we had enjoyed a lot of recent success, we remained committed to moving the chains forward. With your continued support, we’ve delivered on that promise.

As NAPEO’s 2027 membership renewal period opens this month, it’s a good time to take stock of our progress and consider the value of belonging to an association dedicated to strengthening your businesses and the PEO industry.

Research shows that trade association membership can deliver significant business value, from stronger financial performance and risk management to greater credibility and innovation. These aren’t simply abstract benefits, they are a true measure of the return on your investment in NAPEO.

NAPEO’s sustained engagement with the IRS has resulted in regular meetings with officials who oversee ERTC processing. These meetings create an opportunity to share your concerns directly with policymakers. The backlog of ERTC claims has dwindled, however, we remain focused on resolving all outstanding issues. Importantly, we continue to advance H.R. 3223 to ensure that administering future payroll tax credits will not cause the same problems to resurface.

We’ve also strengthened relationships with Department of Labor officials responsible for Form 5500 reporting, and produced a Congressional casework guide so you can seek assistance directly from your Member of Congress on matters impacting your business.

Across state capitals, we prevented harmful legislation from passing in Illinois, Kansas and Louisiana and prevented an abrupt unemployment insurance reporting change in Ohio. After years of advocacy, the New Mexico Superintendent of Insurance is aligned with NAPEO’s position that PEO-sponsored health plans are not MEWAs. We also secured PEO-specific provisions in Washington and New York’s state auto-IRA programs.

These efforts help protect your businesses from unfavorable policies, reduce regulatory uncertainty and create an environment where PEOs can thrive. These successes would be difficult for any individual business to pull off on their own, which is the entire purpose of an industry association: we can do a lot more together than we can apart.

We’ve also invested significantly in strengthening our industry’s credibility and visibility. Our new research released in September found that PEOs now support 5.4 million American workers. We’re putting those findings to work through a comprehensive industry narrative campaign and new advocacy resources that help members communicate the PEO value proposition to policymakers, business leaders and the media.

One of the greatest benefits of belonging to NAPEO is the community itself. The willingness of our members to share expertise, offer guidance and help one another succeed is something I’ve always admired about this industry. That collaboration makes individual companies stronger and our entire industry more resilient.

Your membership and active engagement are investments in all of this—in the advocacy that protects your business, the resources that help it grow, the relationships that strengthen it and the collective voice that advances our industry.

We’ve accomplished a great deal in 2026, but there’s much more work ahead. As we prepare for new legislative sessions, a new Congress and the next phase of our strategic plan, we’ll need all hands on deck to maintain our momentum.

I hope you’ll renew your NAPEO membership for 2027 and continue to be part of what we’re building together. We’ve built tremendous momentum this year, and I truly believe we’re just scratching the surface on what we can get done together.

Thank you for your continued support.