On November 18, 2011, Senator Grassley (R-IA) and Senator Bill Nelson (D-FL) introduced the Small Business Efficiency Act into the Senate (S. 1908). This bill is the Senate version of the House Bill, H.R. 2466. Senator Pryor (D-AR), Senator Portman (R-OH), Senator Bingaman (D-NM) and Senator Conrad (D-ND) have also joined as co-sponsors.
The House version was introduced by Representative Kevin Brady and Representative Mike Thompson and is co-sponsored by Representatives Rob Andrews, Tim Bishop, Dennis Cardoza, Sean Duffy, Blake Farenthold, Nan Hayworth, Wally Herger, Ralph Hall, Sam Johnson, Pete Olson, William Owens, Erik Paulsen, Ted Poe, Tom Reed, Paul Tonko,and Allen West.
The Small Business Efficiency Act of 2011, H.R. 2466/S.1908, would provide clear rules for Professional Employer Organizations (PEOs) that are voluntarily certified by the IRS to collect and remit federal employment taxes for their small business clients. It will provide certainty for small businesses that use certified PEO services and will allow those small businesses to do what they do best- focus on their core business, grow their businesses, and create more jobs.