Section 199A 20% Tax Deduction

Department of Treasury Guidance a Victory for the PEO Industry

The U.S. Department of Treasury and the Internal Revenue Service issued a noticed of proposed rulemaking that contains guidance for pass-through entities that are clients of PEO's.  The guidance clearly states that eligible pass-through entities that are clients of a PEO can take the 20% tax deduction created by Section 199A of tax reform.  

The guidance affirms what NAPEO has been advocaing this year:  BEING A PEO CLIENT DOES NOT AFFECT ELIGIBILITY OF A PASS-THROUGH ENTITY FOR THE 20% TAX DEDUCTION IN SECTION 199A OF THE TAX CODE.


  • By admin
  • 08/08/2018
  • PEO (Professional Employer Organization), Employee Benefits, Payroll Administration, Workers' Compensation, Human Resource, Co-Employment, Employee Leasing