amsource® Earns Prestigious ESAC Accreditation
Highest Achievement for a Professional Employer Organization
amsource, a human resource outsourcer (HRO) and professional employer organization (PEO) headquartered in Birmingham, Ala., has accomplished the most prestigious performance achievement for a PEO – accreditation by the Employer Services Assurance Corporation (ESAC). This signifies that the company continuously meets the highest standards applied to firms in the $51 billion PEO industry.
"The ESAC Board is proud to announce the accreditation of amsource," said Jane McCoggins, ESAC's executive director. "This company's achievement not only demonstrated its compliance with important ethical, financial and operational standards but also its commitment to the sound growth, dependability and credibility of the PEO industry."
amsource is one of only 24 PEOs that have achieved ESAC accreditation. The company underwent rigorous examination by ESAC's outside experts, who will continue to monitor the company's compliance with the standards to maintain its accreditation.
"We have worked hard over the past 15 years to build the amsource Employer Operating System, an operating system that consistently executes on our promises to clients. I get to work with an incredible group of people at amsource, and take great pride in their ability to obtain the ESAC accreditation," said Lee Lichtenstein, president/CEO.
amsource is a member of the National Association of Professional Employer Organizations (NAPEO). Leaders of NAPEO established ESAC 10 years ago to build trust and provide assurance to PEO clients, worksite employees, insurers, taxing authorities, state and federal regulators, and the general public. ESAC provides the ability for PEOs of any size to have independent verification that their companies are being operated legally and in a financially stable manner by competent and ethical leaders based on sound professional practices.
As an accredited PEO, amsource is backed by financial assurance through the ESAC Client Assurance Program. This assurance consists of an individual $1 million surety bond plus a $3 million excess bond covering all accredited PEOs. In early 2006, the excess bond amount will be increased to $5 million, providing a total of $6 million in financial assurance.
ESAC is the only bonded, independent and qualified assurance organization for the PEO industry. ESAC's PEO Client Assurance Program is similar to the assurances offered by the FDIC for the banking industry. The program provides for reimbursement to clients, worksite employees, taxing authorities, and insurers in the unlikely event of a default by the PEO to pay wages, payroll taxes, contributions to employee retirement plans, workers' compensation premiums and group life and health insurance premiums or plan contributions. ESAC provides an unprecedented level of assurance, because during its 10 years of operation, there has never been a default involving an accredited PEO.
Increasingly, states with PEO licensing or registration statutes are recognizing ESAC accreditation as an alternative for their compliance requirements. Many state regulators regard ESAC accreditation as an effective, efficient method of performance monitoring and verification.
"NAPEO applauds Lee Lichtenstein for his leadership and commitment that led his company to achieving accreditation," said Milan P. Yager, executive vice president of NAPEO. "He joins an elite corps of PEO leaders who recognize that accreditation builds trust in the PEO marketplace and among regulators and insurers. This is a remarkable achievement within a remarkable industry."
SOURCE: NAPEO, the National Association of Professional Employer Organizations