ESAC accreditation
ESAC accreditation is the PEO industry’s financial assurance program: accredited PEOs meet audited financial standards and client payrolls are backed by surety bonds.
The Employer Services Assurance Corporation (ESAC) audits accredited PEOs against financial, ethical, and operational standards and provides surety coverage for specified client losses if the PEO fails to remit payroll taxes, insurance premiums, or benefit contributions it collected.
ESAC and IRS certification (CPEO) answer overlapping but different questions. ESAC reviews financial and operational controls, while CPEO status changes specified federal employment tax treatment. If a candidate holds neither, request other evidence of financial condition, bonding, and remittance controls.