IRS Certified PEO and ESAC Accreditation Explained
What CPEO certification and ESAC accreditation mean and how to verify them.
IRS Certified Professional Employer Organization (CPEO)
A CPEO is a PEO the IRS has certified. A CPEO is generally treated as the employer for federal employment tax purposes for the workers it covers, which can protect clients from some payroll tax liability. The IRS publishes the list of certified PEOs: active CPEO list (August 7, 2026).
ESAC accreditation
ESAC (Employer Services Assurance Corporation) is a nonprofit that accredits PEOs on financial strength and compliance standards. Accredited status is reported by providers and third-party reviews; confirm it with ESAC or the provider.
How we show badges
An IRS Certified PEO badge means the provider appears on the IRS list under a related legal entity name. An ESAC Accredited badge means a source we reviewed reports accreditation. A missing badge only means we could not confirm it.
Questions
Does ACA accreditation exist?
ACA usually means the Affordable Care Act, which is a law and not an accreditation. The PEO industry accreditation you may be thinking of is ESAC (Employer Services Assurance Corporation).
Does a missing badge mean a PEO is not certified?
No. It means we could not confirm it in the sources we reviewed. The IRS lists legal entities, so a PEO may appear under a different name. Always ask the provider.