Glossary · PEO basics
ESAC (Employer Services Assurance Corporation)
An independent accreditation body that audits PEOs for financial reliability, ethical standards, and regulatory compliance.
All terms
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ESAC accreditation is awarded to PEOs that meet ongoing financial, ethical, and operational standards verified through independent audit. Accredited PEOs post surety bonds backing client payroll and tax obligations.
ESAC accreditation is a common procurement filter for sophisticated PEO buyers and brokers, particularly for clients moving meaningful payroll or where tax-remittance assurance is a board-level concern.
Related terms
- CPEO (Certified PEO)A PEO certified by the IRS under the Small Business Efficiency Act, providing client businesses explicit federal employment-tax liability assurance.
- NAPEO (National Association of Professional Employer Organizations)The U.S. trade association for the PEO industry, publishing research, advocacy, and standards used by buyers and brokers to evaluate PEOs.
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