I think I've read that the wages paid to employees via a PEO are going to be allowed as a business expense for 199A, right?
What comes up in a search here are two older discussions that are inconclusive. I have a client whose employee leasing expense this year is over a million dollars. Of that, $781241 is considered to be gross wages, the rest of the charges are payroll taxes, medical costs, WC, TDI , admin fees, etc. Which will not be used in the calculation for 199A. It also looks like someone was paid WC benefits of $7,508. I'm not sure why that would be on the list of what is included in the leasing fee. If someone is on WC, they get a completely separate W-2 from the insurance company.