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Senate Bill 0506


Senate Bill 0506

ARCHIVE (2013)

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DIGEST OF SB 506 (Updated March 19, 2013 3:43 pm - DI 84)


Unemployment insurance. Requires a professional employer organization (PEO) to use the client level reporting method for purposes of reporting and paying all required contributions to the unemployment compensation fund unless the PEO elects the PEO level reporting method. Provides that a PEO that initially elects the PEO level reporting method may subsequently elect the client level reporting method by notifying the department of workforce development (department) not later than December 1 of the calendar year before the calendar year in which the election is effective. Provides that a PEO using the client level reporting method may not change its reporting method. Requires a PEO and its related entities to use the same reporting method for all clients. Establishes a procedure for an acquirer or a PEO to request and receive a statement from the department indicating whether an account being acquired or transferred is in good standing, and provides that, if the statement shows that the account is in good standing and the department later discovers an outstanding liability associated with the acquired or transferred account, the department: (1) may not assess a delinquent employer rate modification based on the account for which a statement was received; and (2) in the case of a PEO, shall administratively separate the acquired or transferred client account from the PEO until the liability is recovered. Makes a technical correction concerning successor employer contribution rates. Repeals in Title 27 and establishes in Title 22 language concerning the determination and payment of employer contribution rates by a PEO. Voids obsolete department rules concerning PEOs.
    Current Status:
     Law Enacted
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