House Bill 1253
Introduced House Bill (H)
DIGEST
Professional employer organizations. Provides that for purposes of the unemployment compensation system law a professional employer organization (PEO): (1) that enters into a professional employer agreement is not treated as a successor employer or as receiving a transfer of a trade or business; (2) that elects to use the PEO level reporting method is liable for contributions, interest, penalties, and surcharges for the duration of a professional employer agreement unless the PEO elects to change to the client level reporting method; and (3) is permitted to apply certain wages to the maximum amount of wages that are subject to contributions
Professional employer organizations. Provides that for purposes of the unemployment compensation system law a professional employer organization (PEO): (1) that enters into a professional employer agreement is not treated as a successor employer or as receiving a transfer of a trade or business; (2) that elects to use the PEO level reporting method is liable for contributions, interest, penalties, and surcharges for the duration of a professional employer agreement unless the PEO elects to change to the client level reporting method; and (3) is permitted to apply certain wages to the maximum amount of wages that are subject to contributions
to the system. Provides that certain changes in a PEO relationship do not make a client a successor employer. Provides that a PEO that has made an election to use the client level reporting method may file a request for clearance with the department of workforce development.
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