PEO - Professional Employer Organizations Licensing by State

PEOs operate currently in all fifty states. The following chart includes only the more comprehensive registration and licensing acts that are applicable to the PEO industry. Other states have legislation specifically referencing the PEO or employee leasing industry but do not have comprehensive registration or licensing requirements specific to the industry (see e.g. Georgia Code section 34-7-6 or the Washington Master Business Application Revised Code of Washington § 19.02.010). In addition, state unemployment codes, workers’ compensation acts, and other statutes may have PEO specific references. Colorado and Rhode Island have specific certification requirements with regard to benefits and taxes respectively. Information courtesy of NAPEO.

View The StaffMarket National PEO Directory

License Required
Registration Required
None

State:

Alabama

License Required

Registration Required

State:

Alaska

License Required

None

State:

Arizona

License Required

Registration Required

State:

Arkansas

License Required

License Required

State:

California

License Required

Registration Required

State:

Colorado

License Required

Registration Required

State:

Connecticut

License Required

Registration Required

State:

Delaware

License Required

None

State:

District of Columbia

License Required

None

State:

Florida

License Required

License Required

State:

Georgia

License Required

None

State:

Hawaii

License Required

Registration Required

State:

Idaho

License Required

None

State:

Illinois

License Required

Registration Required

State:

Indiana

License Required

Registration Required

State:

Iowa

License Required

None

State:

Kansas

License Required

Registration Required

State:

Kentucky

License Required

Registration Required

State:

Louisiana

License Required

Registration Required

State:

Maine

License Required

Registration Required

State:

Maryland

License Required

None

State:

Massachusetts

License Required

Registration Required

State:

Michigan

License Required

License Required

State:

Minnesota

License Required

Registration Required

State:

Mississippi

License Required

None

State:

Missouri

License Required

None

State:

Montana

License Required

License Required

State:

Nebraska

License Required

Registration Required

State:

Nevada

License Required

Registration Required

State:

New Hampshire

License Required

License Required

State:

New Jersey

License Required

Registration Required

State:

New Mexico

License Required

Registration Required

State:

New York

License Required

Registration Required

State:

North Carolina

License Required

License Required

State:

North Dakota

License Required

License Required

State:

Ohio

License Required

Registration Required

State:

Oklahoma

License Required

Registration Required

State:

Oregon

License Required

License Required

State:

Pennsylvania

License Required

None

State:

Rhode Island

License Required

Tax Certificate Required

State:

South Carolina

License Required

License Required

State:

South Dakota

License Required

None

State:

Tennessee

License Required

Registration Required

State:

Texas

License Required

License Required

State:

Utah

License Required

Registration Required

State:

Vermont

License Required

License Required

State:

Virginia

License Required

Registration Required

State:

Washington

License Required

None

State:

West Virginia

License Required

License Required

State:

Wisconsin

License Required

Registration Required

State:

Wyoming

License Required

None

Alabama

Reporting
Client additions and terminations must be reported within 30 days to Director of DIR and PEO's Workers compensation carrier.

Quarterly Reports. The state sends Quarterly Contribution and Wage reports to be completed and returned with payment. Due the last day of the month following the quarter. Wage reports can be filed electronically.
Bonding
The director will determine,by rule, the financial requirements for a renewal registration. The rule:

-may require submission of securities or guarantees securing payment of all unemployment taxes and workers compensation claim payments due to or with respect to covered employees

-may require that the security or assets to secure payments be kept at a financial institution located in Alabama.

-Director may eccept net worth based on audited financial statements in whole or in part for the financial requirements
-Requirements shall not exceed $100,000
Financial
No
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Alabama.

http://www.sos.state.al.us/BusinessServices/Default.aspx}
Benefit Plans
PEO and/or client can sponsor retirement and welfare benefit plans; however, the service agreement must specify the sponsor of each plan.

Agency Web Site: Alabama Department of Insurance

Alaska

Reporting
File an Employers Registration form
-Maintain accurate payroll records
-File Quarterly contribution reports, Quarterly reports are due the last day of the following month of the end of the quarter.
-Pay unemployment insurance taxes
-Report changes in ownership or closure of the business
-Report changes in corporate officers
-Employment Security Tax is required by state law to maintain separate accounts for each employing unit. Aggregation of reports, as in employee leasing is NOT allowed.
Biennial Reports-because we filed on an even numbered year (2012) then our report is not due until 2014. This report will keep our COA up to date.
Bonding
N/A
Financial
N/A
License Required
None
License Extra
General Business Requirements
Apply to the Department of Commerce for a Certificate of Authority to conduct business in Alaska.

Business Entity Registration Forms
License Regulations
None required.
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

PEO sponsored self-funded benefit plans are not specifically addressed in Alaska laws or regulations, but will most likely to be considered MEWAs.

Agency Web Site: Alaska Division of Insurance

Arizona

Reporting
Provide notice of all new and terminated clients to its workers compensation insurance carrier and the workers compensation commission.
Bonding
Must maintain either a minimum net worth of at least $100,000 or a bond, an irrevocable letter of credit or securities that have a minimum market vale of $100,000.
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Corporation Commission for a Certificate of Authority to conduct business in Arizona.

Arizona Business Entity Registration Forms
License Regulations
Arizona PEO Registration - DELAYED Until June 30, 2023
Benefit Plans
A PEO sponsored fully insured benefit plan is not subject to additional regulation.

A PEO sponsored self-funded benefit plan may be considered a MEWA.

MEWA Provisions − A self funded MEWA is considered an "unauthorized insurer".

Agency Web Site: Arizona Dept. of Insurance

Arkansas

Reporting
Filing and Reporting. Quarterly Contribution and Wage Report on official forms. Due the 15th of the month following the end of the quarter.

Employers required to submit W-2 data to the Social Security Administration must likewise submit its quarterly wage information to the state Employment Security Department on magnetic media tape in accordance with agency requirements.
Bonding
Yes, To exempt the Client from joint & several liability for SUI taxes, the PEO must post a $100,000 Surety Bond, reduced to $35,000 after 3 years. This is in addition to the licensing bond.
Financial
N/A
License Required
License Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Arkansas.

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor benefit plans.

A PEO sponsored self-funded benefit plan is allowed if: a) a licensed TPA is used; b) all plan assets are held in a separate trust account; and c) sound reserves are provided for the plan.

A PEO will not be considered a MEWA if a benefit plan is offered only to the PEO's employees.

Go to: Subchapter 4. Arkansas Professional Employer Organization Recognition and Licensing Act and scroll down to ACA 23-92-409(f)(1) through (f)(4).

Agency Web Site: Arkansas Insurance Dept.

California

Reporting
Only applies to PEO's with licenses, which is only required in the garmet industry.
Bonding
No
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in California.

Business Entity Registration Forms & Fees
License Regulations
Registration requirement only for PEOs involved in the garment industry.

See: Registration of Employee Leasing Companies and Temporary Agencies
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan will likely be deemed a MEWA and will be subject to California insurance regulations.

Healthcare mandate in City of San Francisco: See San Francisco Health Care Security Ordinance FAQ (questions 17 & 34 address PEOs)

Agency Web Site: California Dept. of Insurance

Colorado

Reporting
Annual Legal Opinion. Each PEO must obtain an independent opinion of counsel to the Department that the PEO is in compliance

Requires an employee leasing company to annually file a renewal of its certification along with evidence that the employee leasing company meets specified financial criteria. Authorizes the department to reduce or waive the bonding requirement for an employee leasing company.

Maintain and have open for inspection a listing of work-site employers and their collective employees.

Maintain records and reports.
Bonding
N/A
Financial
Quarterly Reports. Can be submitted on-line or electronically. It is due the last day of the month that follows the quarter.

Co-Employer Annual Report. After PEO is registered, SUI office will send the Annual Report to the address on record.

This needs to be completed and returned within 30 days.
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Colorado.

Colorado Business Registration (Form CR 0100)

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan will be deemed a MEWA and will be subject to Colorado insurance regulations.

Agency Web Site: Colorado Division of Insurance

Connecticut

Reporting
Annual registration.

Notify Commission of any change to the beginning and ending date of its fiscal year.

Notify commissioner of any change in address for each office.

Quarterly Reports-The PEO may file quarterly returns for each Client as they are issued. (perhaps more frequently if determined)
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Connecticut.

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans, however an insurance provider must file certain information with the insurance commissioner prior to offering coverage to a PEO.

See: Employee Leasing Statute: CT Insurance Department BULLETIN HC-61

Agency Web Site: Connecticut Insurance Department

Delaware

Reporting
Quarterly Reports must be filed with the Division of Unemployment Insurance using the Client's name and number.
Bonding
N/A
Financial
N/A
License Required
None
License Extra
General Business Requirements
Apply to the Division or Corporations for a Certificate of Authority to conduct business in Delaware.

Business Entity Registration Forms
License Regulations
Not required.
Benefit Plans
PEO and/or client fully insured benefit plans not addressed in Delaware laws or regulations.

PEO sponsored self-funded benefit plans are not specifically addressed in Delaware laws or regulations, but may be considered a MEWA.

Agency Web Site: Delaware Insurance Department

District of Columbia

Reporting
Quarterly. Employers must file quarterly the Contribution & Wage Report (Form UC-30). Quarterly filers are mailed the UC-30 each quarter, although employer of 250 or more must file electronically.
Bonding
N/A
Financial
Quarterly .Employers must file quarterly the Contribution & Wage Report (Form UC-30). Quarterly filers are mailed the UC-30 each quarter, although employer of 250 or more must file electronically.
License Required
None
License Extra
General Business Requirements
Apply to the Dept. of Consumer & Regulatory Affairs - Corporations Division for a Certificate of Authority to conduct business in the District of Columbia.

Business Entity Registration Forms
License Regulations
None required.
Benefit Plans
PEO-sponsored and Client-sponsored plans are not addressed in District of Columbia laws or regulations.

Agency Web Site: D.C. Dept. of Insurance, Securities & Banking

Florida

Reporting
License Renewal

Annual Assessment-This assessment fee is used to fund BELC and is assessed every year based upon gross annual payroll. Statements are usually mailed out in March to all licensees and the assessment is due by April 1 (delinquent after April 30), along with a copy of the UCT-6 form

Annual Report-Submit to BELC no later than 120 days after end of fiscal year. For Florida payrolls of more than $2,500,000, the financial report must be audited, otherwise they must be reviewed, and must show the minimum required working capital Part of the annual reporting requirement is a workers compensation liability statement.

Semi-Annual Report-The Florida Unemployment Compensation Law requires a licensed PEO to submit a report listing clients with Florida employees, followed by the names of the Florida employees and their social security numbers. Due dates are July 31 or February 28. Submit to Unemployment Division, Employer Registration.

Quarterly Report-Due 75 Days after the end of the qaurter. Signatures and attachments are required and evidence of working capital is required. Quarterly Compliance Form must be submitted with the Quarterly Report.
Bonding
N/A
Financial
N/A
License Required
License Required
License Extra
General Business Requirements
Apply to the Department of State for a Certificate of Authority to conduct business in Florida.

Business Entity Registration Forms
Benefit Plans
PEO sponsored fully insured benefit plan is not subject to additional regulation.

A PEO sponsored self-funded benefit plan must be approved by the Board of Employee Leasing Companies as being permitted by the Florida Insurance Code or by ERISA. See: 468-529 Licensee's insurance; employment tax; benefit plans.

MEWA Provisions - Do not necessarily apply to PEO.

Agency Web Site: Office of Insurance Regulation

Georgia

Reporting
Ongoing, Separation Notice. The employer must provide the separating employee with a Separation Notice or mail it to the last known address, in order for the employee to present it to the SUI office to obtain benefits.

Quarterly. At least quarterly, the PEO must report to the Georgia DOL any additions, deletions, or corrections to the above data under Records Requirements.
Bonding
N/A
Financial
N/A
License Required
None
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Georgia.

Business Entity Registration Forms
License Regulations
Not required. However, there are statutes, regulations, rules and/or forms applicable to PEOs in Georgia.
Benefit Plans
A PEO sponsored fully insured benefit plan is not subject to additional regulation.

MEWA Provisions - A PEO sponsored self-funded health plan is considered a MEWA by the Georgia Dept. of Insurance and is subject to the MEWA Statutes (Title 33, Chapter 50 of the Georgia Code).

Agency Web Site: Georgia Dept of Insurance

Hawaii

Reporting
Quarterly contribution reports and an Annual reconciliation report.
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
Not implemented
General Business Requirements
Apply to the Department of Commerce and Consumer Affairs for a Certificate of Authority to conduct business in Hawaii.

Business Entity Requirement Forms
License Regulations
None required.
Benefit Plans
PEO-sponsored and Client-sponsored health plans are subject to the Hawaii Prepaid Health Care Act and its requirements.

See: Hawaii - Prepaid Health Care (PHC) Act

Agency Web Site: Hawaii Department of Insurance

Idaho

Reporting
No PEO reports, although there are SUI reports and Tax reports that are required of all employers.
Bonding
If the Client or PEO is a government contractor and the contract is for $1000 or more, then the PEO must execute a surety bond to cover the SUI liability.
Financial
The PEO must report and make SUI payments under its state employer account number on a quarterly basis. However, it must keep separate records on all Clients and submit separate quarterly wage reports for each Client. It pays contributions for all Clients collectively on the PEOs rate unless it elects to pay for certain Clients individually. In that case, it will use the Client's rate.

Quarterly reports are due even if no wages were paid in the quarter. Penalty for Noncompliant UI Reports.
License Required
None
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to
conduct business in Idaho. Secretary of State
Business Entity Registration Forms
License Regulations
Not required.

However, certain minimum standards for PEOs have been set forth in the: Idaho Professional Employer Recognition Act
Benefit Plans
A PEO sponsored fully insured benefit plan is not subject to additional regulation.

A PEO sponsored self-funded benefit plan is allowed per the Minimum Standards section 44-2405}
Labor Code, PEO Minimum Standards,
Statute 44-2405,
http://www.legislature.idaho.gov/idstat/TOC/IDStatutesTOC.htm}
scroll to Labor (Title 44)
MEWA Provisions - Do not apply to PEO.

Agency Web Site: Idaho Dept. of Insurance

Illinois

Reporting
Client Drops and Adds. The PEO must report all new clients to IDES within 30 days of the drop or add date, or by the end of the quarter, whichever is later. It must also report dropped clients as well. Reports can either be mailed or faxed.
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Illinois.

Application for Authority to Transact Business in Illinois

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan will likely be deemed unauthorized insurance and will be subject to Illinois insurance regulations.

Agency Web Site: Illinois Division of Insurance

Indiana

Reporting
A written notice to employees is required.
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Indiana.

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan is allowed, but must meet certain reporting and funding requirements.

See: Indiana PEO Statute - Benefit Plans
Agency Web Site: Indiana Dept. of Insurance

Iowa

Reporting
Quarterly Reports
Bonding
N/A
Financial
N/A
License Required
None
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Iowa.

Business Entity Registration Forms
License Regulations
None required.
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan is not specifically addressed in Iowa laws or regulations, but may be considered a MEWA.

Agency Web Site: Iowa Insurance Division

Kansas

Reporting
Yes. Status Report for Clients. (Form K-CNS 010). This form must be completed for each Client when the PEO arrangement is formed. If it is necessary to submit a Wage Report with the Status Report, at the box on the Wage Report where the account number belongs, write applied for with the correct FEIN number of the PEO, and include the PEO name and Client's name followed by the word (Client) so the state can properly identify the account and attach wages to the correct Client account.

Quarterly Reports will be mailed to the employer by the state.
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Kansas.

Business Entity Registration Forms
License Regulations
None required.
Benefit Plans
PEO-sponsored and Client-sponsored health plans are not addressed in Kansas laws or regulations; however, a PEO sponsored self-funded benefit plan will likely be deemed a MEWA.

Agency Web Site: Kansas Insurance Department

Kentucky

Reporting
Annual Reports
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Kentucky.

Business Entity Registration Forms
Benefit Plans
PEO-sponsored and Client-sponsored health plans are not addressed in Kentucky laws or regulations.

Agency Web Site: Kentucky Department of Insurance

Louisiana

Reporting
The PEO must identify the Clients with co-employees in Louisiana.

Electronic filing. The Director may require all employers to electronically file all registrations and status reports due after January 31, 2014.

Quarterly Reports: These forms are mailed to the employer by the SUI office. The PEO must keep separate records and submit separate quarterly contribution and wage reports on each of its Clients using the Client's account number and rate unless the PEO posts a $100,000 bond with the Department of Insurance as the beneficiary.

RS 23:1531.1 requires employers to file tax and wage reports electronically and pay using Electronic Fund Transfers.
Bonding
None with DOI
Financial
N/A
License Required
Registration Required
License Extra
Dual with DOI/DOL
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Louisiana.

Louisiana Business Entity Registration Forms
Benefit Plans
A PEO sponsored fully insured benefit plan is allowed, subject to Insurance Dept approval,but each "Client's employees shall be considered as a separate group for purposes of eligibility, rating, and coverage."
See: LA Revised Statutes - RS 22:1745

A PEO sponsored self-funded benefit plan is not allowed in Louisiana.

MEWA Provisions - Apply to PEO. See: Bulletin No. 01-01

Agency Web Site: Louisiana Dept. of Insurance

Maine

Reporting
Changes must be reported. $35 fee Registration must be renewed in January of each year.

Quarterly Reports.
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Maine.

Business Entity Registration Forms
Benefit Plans
A registered PEO and/or Client can sponsor fully-insured benefit plans.

A PEO sponsored self-funded benefit plan may be allowed if certain statutory requirements are met and approval is obtained from the Insurance Commissioner.

See: Maine Insurance Code - MEWA/Employee Leasing Statute

Agency Web Site: Maine Bureau of Insurance

Maryland

Reporting
Contribution Return (DLLR/DUI 15) and Employment Report (DLLR/DUI 16). These reports are mailed each quarter to the employer and must be returned to DLLR in the month following the quarter being reported, indicating total gross wages paid, up to the Wage Limit

Electronic Reporting. Employers of 100 or more employees must report electronically; employers of fewer than 100 may do so using diskettes.

On-Going Reporting. Whenever a PEO signs a new Client, it must notify the SUI office within 30 days of moving the workers to the PEO payroll. There is no official form for this purpose; the PEO can submit the information in the form of a letter, including Client name, Client's SUI number, FEIN, and other identifying information, to:

Maryland Dept. of Labor, Licensing, and Regulation.

Experience Rate Unit

Annual Report. On or before the end of each calendar year, the PEO must file an annual report listing all Clients (name and address).

It is advised the PEO notifys the state of a drop client so the state does not look to the PEO to pay the SUI taxes, this is not required though.
Bonding
N/A
Financial
N/A
License Required
None
License Extra
General Business Requirements
Apply to the Department of Assessments & Taxation for a Certificate of Authority to conduct business in Maryland.

Maryland Foreign Corporation Qualification Form
Business Entity Registration Forms
License Regulations
None required:
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan is not specifically addressed in Maryland, and may be considered a MEWA or unauthorized insurance.

Agency Web Site: Maryland Insurance Administration

Massachusetts

Reporting
Quarterly Reports. The employer must report SUI totals quarterly on behalf of the Client. This can include the Health Insurance report required by the Universal Health Care Act.

Each employer that is subject to SUI and has 6 or more employees is also subject to health insurance contribution reporting requirements.

Annual Reports: The PEO must submit a list of Clients on or before December 31, including Client name, address, state SUI number, and FEIN. Employer Filing of the Fair Share Contribution (FSC) Report and the Employer Health Insurance Responsibility Disclosure (HIRD) Report Has Begun at Division of unemployment Assistance (DUA).
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of the Commonwealth for a Certificate of Authority to conduct business in Massachusetts.

Business Entity Registration Form
License Regulations
Registration & reporting requirements for Unemployment Tax purposes only.

See: Massachusetts - Employee Leasing Regulations
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans; however, the Employer Surcharge for State-funded Health Costs under Massachusetts universal healthcare law is assessed at the client level.

A PEO sponsored self-funded benefit plan is considered a MEWA and will be subject to state insurance regulations.

Agency Web Site: http://www.lawlib.state.ma.us/source/mass/cmr/cmrtext/211CMR66.pdf}

Michigan

Reporting
Quarterly Tax report, complete an electronic employer registration, file a single quarterly wage report and unemployment contribution report and pay contributions of its client employers based on the account information of each client employer.
Bonding
N/A
Financial
Send in audited financials with renewal application.
License Required
License Required
License Extra
General Business Requirements
Apply to the Dept. of Energy, Labor & Economic Growth for a Certificate of Authority to conduct business in Michigan.

Business Entity Registration Forms
License Regulations
PEO Licensing PEO License Application
PEO Limited License Application

The Michigan Bureau of Commercial Services PEO Forms
http://www.legislature.mi.gov/(S(vbi1qo3lxvlsnp55awfmfq45))/mileg.aspx?page=getobject&objectname=mcl-Act-370-of-2010 | MICHIGAN PROFESSIONAL EMPLOYER ORGANIZATION REGULATORY ACT
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan may be considered a MEWA, but is not specifically addressed by Michigan law or regulation.

Agency Web Site: Michigan Office of Financial & Insurance Regulation

Minnesota

Reporting
Quarterly Tax Report

Quarterly Wage Detail Report

Annual Tax Report
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Minnesota.

Business Entity Registration Forms
Benefit Plans
PEO-sponsored and Client-sponsored health plans are not addressed in Minnesota laws or regulations, except that an agent or broker cannot market a PEO-sponsored plan before filing certain information with the Insurance Commissioner.

See - Minnesota Statutes - Employee Leasing Arrangements

Agency Web Site: Minnesota Department of Commerce

Mississippi

Reporting
Monthly. The PEO must inform MDES monthly of all dropped and added Clients, including (a) Client name, (b) FEIN, mailing address, (d) physical location, (e) telephone number, (f) effective date, (g) whether the Client is dropped or added.
Bonding
N/A
Financial
N/A
License Required
None
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Mississippi.

Business Entity Registration Forms & Instructions
License Regulations
None Required.
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan is not addressed in Mississippi statutes or regulations.

Agency Web Site: Mississippi Insurance Dept.

Missouri

Reporting
Report any changes

Quarterly Contribution and Wage Report

Quarterly Client List-must be submitted with Quarterly Contribution and Wage Report
Bonding
With respect to Unemployment, the PEO must post a bond, which protects the Client from joint and several liability. Bond size is “equivalent to the contributions or payments in lieu of contributions for which the lessor employing unit was liable in the last calendar year or $100,000, whichever amount is the greater." Acceptable substitutes are marketable securities, a letter of credit, or a certificate of deposit. (Statute 288-032.2(3), Reg. 8-10-4.160(2) to (8) and 4.170). {http://labor.mo.gov/div_pubs_forms.asp#LeasingForms | Forms for Lessor Employment Units}
Financial
N/A
License Required
None
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Missouri.

Missouri Business Entity Registration Forms
License Regulations
Benefit Plans
A PEO sponsored fully insured benefit plan is not subject to additional regulation.

A PEO sponsored self-funded health plan is considered a "multiple employer self-insured health plan" (MEWA).

MEWA Provisions - Multiple Employer Self-Insured Plan, Defined

Agency Web Site: Missouri Dept. of Insurance

Montana

Reporting
Notify the department in writing within 20 days of a change of business address or a change in partners, directors, officers, members, or controlling persons designated in the license; Use renewal application.

Annual. License is effective for one year. Must be renewed annually. Renewal application must be submitted 30 days or more prior to expiration of the license.
Bonding
Surety bond allowed to meet $50K net worth requirement. Ref 39-8-202(6) Montana Code Annotated (MCA)
Financial
Quarterly. Within 90 days of the end of each calendar quarter, the PEO must submit information certified by an independent CPA stating that all payroll-related taxes for the quarter have been paid.
License Required
License Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Montana.

Business Entity Registration Forms
Benefit Plans
The PEO is considered the employer for the providing of benefit plans. If the plans are only offered to the PEO's employees, the PEO will not be considered a MEWA.

Agency Web Site: Montana Insurance Division

Nebraska

Reporting
Notice to Employees of relationship.

Notice of discrimination claim. PEO and client have obligation to notify the other of a discrimination claim within ten business days after such receipt of notice.

Workers compensation notices and disclosures to client.

Workers compensation notices and disclosures to administrator of the Nebraska Workers' Compensation Court.

30 days notice to client required prior to any any fee increase on a client based on the actual or anticipated cost of workers' compensation coverage.

The state will mail a quarterly report form to be completed by the PEO and returned to the state.
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Nebraska.

Business Entity Registration Forms
License Regulations
None required.
Benefit Plans
PEO-sponsored and Client-sponsored health plans are not addressed in Nebraska laws or regulations.

Agency Web Site: Nebraska Department of Insurance

Nevada

Reporting
If any of the information on the registration changes, the PEO must amend the registration within 30 days of the change.

Quarterly Reports are due by the end of the month following the end of the quarter.
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Nevada.

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

PEO self-funded health plans are not allowed.

Agency Web Site: Nevada Division of Insurance

New Hampshire

Reporting
Annual. Must renew license annually, including audited financial statement showing min. working capital of $100,000; audit dated within 12 months or less from the date of license or renewal. ) If an employee leasing company has been continuously licensed without revocation or suspension for a period of 5 years or more, a license shall remain in force for 2 years from the date of issue provided that financial information required under RSA 277-B:8 is submitted to the department on an annual basis. Every licensee shall file an application for renewal 60 days before expiration of its license.

Quarterly. SUI Report of total payroll by SIC Code and Client, and including a certification by CPA stating all state and federal taxes have been timely paid. SUI must be paid monthly.

Notify the Commissioner of Labor in writing of all dropped or added Clients within 10 days of engagement or termination.

Weekly. The PEO must pay state Unemployment Taxes weekly, and must file a report by the 4th day after close of the previous week Magnetic Medium must be used for reporting 250 or more employees.
Bonding
N/A
Financial
N/A
License Required
License Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in New Hampshire.

Business Entity Registration Form
Benefit Plans
PEO and/or Client can sponsor fully-insured benefit plans.

A PEO sponsored self-funded benefit plan is allowed only if it has been qualified as a single employer plan under the provisions of ERISA.

See: Employee Leasing Companies - Employee Benefits

Agency Web Site: New Hampshire Insurance Department

New Jersey

Reporting
Annual Renewal of registration must be completed by January 31.

Quarterly Contribution Reports (Form UC-27). Required to be filed within 30 days of the end of the quarter.
Bonding
N/A
Financial
Quarterly certifications that all taxes are paid, signed by a CPA, due within 60 days after the end of each quarter.
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in New Jersey.

Business Entity Registration: Forms or On-line

Business Entity Registration Information & Instructions
License Regulations
New Jersey Department of Labor - Employee Leasing Forms

New Jersey Department of Labor - http://lis.njleg.state.nj.us/cgi-bin/om_isapi.dll?clientID=161374&Depth=2&TD=WRAP&advquery=%2234%3a8-67%22&depth=4&expandheadings=on&headingswithhits=on&hitsperheading=on&infobase=statutes.nfo&rank=&record=D5A7}&softpage=Doc_Frame_PG42&wordsaroundhits=2&x=33&y=16&z|Employee Leasing Statutes}
Benefit Plans
PEO and/or client fully insured benefit plans not addressed in New Jersey laws or regulations.

A PEO sponsored self-funded benefit plan is not specifically addressed in New Jersey laws or regulations, but may be considered a MEWA.

Agency Web Site: New Jersey Department of Banking & Insurance

New Mexico

Reporting
Quarterly Reports
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Public Regulation Commission for a Certificate of Authority to conduct business in New Mexico.

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans; however, certain filing requirements are necessary for PEOs.

See: New Mexico- Insurance Regulation 13.19.3.9

Agency Web Site: New Mexico Public Regulation Commission

New York

Reporting
Annual Licensing or Renewal. CPA audited or reviewed financial report required for licensing or renewal.

Quarterly. Within 60 days of the end of each financial quarter, the PEO must submit a letter by a CPA stating with reasonable assurance that the PEO has paid all applicable federal and state taxes on all New York employees for that quarter, and explaining the basis for that conclusion.
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Department of State for a Certificate of Authority to conduct business in New York.

Business Entity Registration Forms
Benefit Plans
A PEO sponsored fully insured benefit plan is considered a single employer plan and not subject to additional regulation. See: New York Professional Employer Act (Section 922.5)

A PEO sponsored self-funded health plan is not subject to additional regulation (not yet challenged as a MEWA).

MEWA Provisions - MEWA must be licensed as an insurance carrier.

Agency Web Site: NYS Insurance Department

North Carolina

Reporting
Annual renewals and periodic notification of drops and adds.

Must submit \"Employer Status Report\",Employers Quarterly Tax and Wage Report. If you have 100 or more employees, electronic transmittal is required.
Bonding
N/A
Financial
Employers Status Report: https://www.ncesc1.com/business/web604/company.asp

Quarterly Tax and Wage Report: http://www.ncesc1.com/business/UI/UiTax2.asp
License Required
License Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in North Carolina.

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan will likely be deemed a MEWA or unauthorized insurance and will be subject to North Carolina insurance regulations.

Agency Web Site: N.C. Dept of Insurance

North Dakota

Reporting
Renewal
Bonding
N/A
Financial
N/A
License Required
License Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in North Dakota.

Business Entity Registration Forms
Benefit Plans
PEO-sponsored and Client-sponsored health plans not addressed in North Dakota laws or regulations.

Agency Web Site: North Dakota Insurance Department

Ohio

Reporting
Quarterly Reports. In Ohio, employers are required to file a complete Quarterly Tax Return each quarter. The report consists of two sections, the Wage Detail and the Quarterly Summary. Advance permission is required to report via magnetic media.
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Ohio.

Ohio Business Entity Registration Forms
License Regulations
Benefit Plans
A PEO sponsored fully insured benefit plan is not subject to additional regulation.
A PEO sponsored self-funded health plan is not subject to additional regulation (not yet challenged as a MEWA).

MEWA Provisions - Ohio MEWA Statute

Agency Web Site: Ohio Dept. of Insurance

Oklahoma

Reporting
Renew annual Prior to the end of the PEO's fiscal year.

Monthly Reports & Service Contracts. The Employment Security Division has been known to request a monthly report of the names and addresses of all Clients that drop or add and a statement of whose SUI number the employees will be reported under. The Division has also been known to request a copy of the signed Service Contract for Clients that were added.

Quarterly Reports
Bonding
N/A
Financial
Quarterly. Payroll Tax Payments. The PEO must submit within 90 days after the end of each quarter a statement by an independent CPA that all state payroll taxes for covered employees located in Oklahoma have been paid on a timely basis for the quarter.
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Oklahoma.

Business Entity Registration Forms
License Regulations
PEO Registration Form - A PEO must register with the Oklahoma Department of Insurance.

PEO Group Application Form - For a PEO Group (two or more PEOs held under common control pursuant to 40 O.S. § 600.4(E)).

PEO Bond Form - Required if the PEO cannot demonstrate a net worth or provide marketable securities of at least $50,000.

PEO Exemption Application - De minimus exemption allowed if PEO 1) is domiciled and licensed or registered as a PEO in another state that has similar or greater requirements than the Oklahoma Statute; 2) does not maintain an office or solicit clients in Oklahoma; and 3) does not have more than 25 co-employees in Oklahoma.

Additional provisions regarding registration fees, service contracts, liability issues, required notices & reports, etc. can be found in the Statute at:

Oklahoma PEO Statute (scroll down to section 600.1 through 600.8)
Benefit Plans
"client and a PEO shall each be deemed an employer for purposes of sponsoring retirement and welfare benefit plans for its covered employees." ( 40 O.S. § 600.7(F)(1)).

MEWA Provisions - PEO shall not be considered a MEWA for purposes of providing retirement and other welfare benefit plans (pursuant to 40 O.S. § 600.7(F)).

Agency Web Site: Oklahoma Insurance Dept.

Oregon

Reporting
The PEO must notify the licensing agency of all changes in the legal existence of the PEO or any changes involving Controlling Persons

Adding a Client. For each new Client, a Worker Leasing Notice (Form 440-2465) must be filed with (1) the Dept. of Consumer & Business Services, and (2) the workers compensation carrier, providing the information requested, within 14 days of the effective date of the service contract.

Dropping a Client. Upon termination, a Worker Leasing Termination Notice (Form 440-3271) must be sent to (1) the Client, (2) the workers compensation carrier, (3) the Department of Consumer & Business Services. It informs them of the date of termination of workers compensation coverage, and it must be sent 30 days in advance of termination.

Note that there are two separate forms
Bonding
N/A
Financial
N/A
License Required
License Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Oregon.

Business Entity Registration Forms
Benefit Plans
PEO-sponsored and Client-sponsored fully-insured health plans are allowed.

PEO sponsored self-funded benefit plan will be considered a MEWA.

Agency Web Site: Oregon Division of Insurance

Pennsylvania

Reporting
Quarterly Reports, these forms are mailed to the employers. They must be completed and returned back to the state.

PEO have to file quarterly reports, which are different from employer quarterly reports. These reports need to be filed with the department. A report for a calendar quarter is due by the last day of the month following the end of the quarter. The PEO shall file a report with the Department of Labor and Industry for each calendar quarter. The report must be made on the Department of Labor and Industry's website.

PEO Quarterly Reports must disclose terminations during the quarter.
Bonding
N/A
Financial
N/A
License Required
None
License Extra
General Business Requirements
Apply to the Department of State for a Certificate of Authority to conduct business in Pennsylvania.

A Guide to Business Registration in Pennsylvania

Pennsylvania Business Entity Registration Forms
Benefit Plans
A PEO sponsored fully insured benefit plan is not subject to additional regulation.

A PEO sponsored self-funded health plan is not subject to additional regulation (not yet challenged as a MEWA).

MEWA Provisions - MEWA must be licensed as an insurance carrier.

Agency Web Site: Pennsylvania Dept. of Insurance

Rhode Island

Reporting
The Tax Certificate must be renewed annually.
Bonding
N/A
Financial
N/A
License Required
Tax Certificate Required
License Extra
Registration Act not implemented
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Rhode Island.

Business Entity Registration Forms
Benefit Plans
PEO and/or Client sponsored fully-insured benefit plans are not addressed in Rhode Island laws or regulations.

PEO sponsored self-funded benefit plans are not addressed in Rhode Island laws or regulations.

Agency Web Site: Rhode Island Department of Human Services

South Carolina

Reporting
Licensee must notify the department in writing of:

(1) a change in the location of its primary business office;

(2) the addition of more business offices; or

(3) a change in the location of business records maintained by the licensee.

You most also notify the department of any licensed name change, there is a fee for a name change.

Monthly. Must notify SC Employment Security Commission of all dropped and added Clients to the PEO roster of Clients.

Quarterly. Submit reports on the Departments form, and include balance sheet and income statement (not audited).

Quarterly. These forms are mailed by the department to the PEO. They are due back by the last day of the month following the end of the quarter. Returns are mandatory, regardless of amount owed. Instructions are provided with the forms.

Annual. Each licensed PEO shall submit a statement of total gross SC payroll along with copies of all SUI Compensation tax returns for the preceding calendar year.
Bonding
N/A
Financial
N/A
License Required
License Required
License Extra
Controlling persons register separately
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in South Carolina.

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan is not allowed.

Agency Web Site: S.C. Dept of Insurance

South Dakota

Reporting
Quarterly reports are required, Employers Quarterly Contribution, Investment Fee, and Wage Report, due 30 days after the end of the quarter.
Bonding
N/A
Financial
N/A
License Required
None
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in South Dakota.

Business Entity Registration Forms
License Regulations
None required.
Benefit Plans
PEO-sponsored and Client-sponsored health plans not addressed in South Dakota laws or regulations.

Agency Web Site: South Dakota Division of Insurance

Tennessee

Reporting
N/A
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Tennessee.

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A licensed PEO sponsored self-funded benefit plan may be allowed, if permission is granted by the Insurance Commissioner. Contact the Department to request the Insurance Commissioner's "Plan of Self-Insurance for Health Benefits for Staff Leasing Licensees".

Agency Web Site: Tennessee Dept. of Commerce & Insurance

Texas

Reporting
Quarterly Report. Within 30 days of the close of each quarter, the Employer must submit a report to show total wages and total taxable wages paid during the quarter. If over 10 employees are reported, it must be filed using automated media according to agency rules. Other reporting and payment rules.

Reports should not be submitted until wages are being paid.

All licensed PEOs, as employer of record, must submit to the Texas Workforce Commission on an official form a list to include each Client?s (a) name, (b) address, (c) telephone number, (d) FEIN, and (e) (SIC) code number.
Bonding
N/A
Financial
N/A
License Required
License Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Texas.

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan is not allowed.

Agency Web Site: Texas Dept. of Insurance

Utah

Reporting
Annual Renewal.

Quarterly. Employers must file Employer's Contribution Report (Form 3) and Employers Quarterly Wage List (Form 33H). The state sends forms to all employers during the last week of the quarter, which must be completed and returned within 30 days of the quarters end.
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Department of Commerce for a Certificate of Authority to conduct business in Utah.

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan is allowed if certain requirements are met; however, it may still be deemed a MEWA.

See: Utah - PEO Statute Section 31A-40-208.

Agency Web Site: Utah Insurance Department

Vermont

Reporting
The PEO must submit a copy of each signed service contract within 10 days after it is signed.

Quarterly reports (Form C-101). These must be submitted separately for each Client, even if no figures are to be reported. The commissioner may require the PEO to make weekly payments. Requirement to Report Quarterly Wage and Contribution Reports electonically (employers with more than 25 employees).

Annually. On or before December 31 of each year, the PEO must provide a list of each Client name and address, FEIN, and state account number.
Bonding
N/A
Financial
N/A
License Required
License Required
License Extra
Must register with SUI & Department of Employ
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Vermont.

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan is only allowed if it has been qualified as a single employer plan under ERISA.

See: Employee Leasing Statute - Employee Benefits

Agency Web Site: Vermont Dept. of Banking, Insurance, & Securities

Virginia

Reporting
Monthly. Each time a Client is dropped or added, the PEO must report the change (within 30 days). All changes in comp carrier must also be reported (violators can receive a civil fine). This will report the change to the Workers Comp Commission and to the Bureau of Insurance of the State Corporation Commission.

Annual. The PEO must produce an annual report of all Clients.
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the State Corporation Commission for a Certificate of Authority to conduct business in Virginia.

Business Entity Registration Forms
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans; however, PEO must be licensed and file as a fully insured MEWA.

See: Virginia - MEWA Rules

PEO sponsored self-funded benefit plan are not allowed.

Agency Web Site: Virginia Bureau of Insurance

Washington

Reporting
Quarterly. Total gross wages paid quarterly on all covered employees must be reported electronically. If that is not possible, the report can be filed using the Employers Quarterly Report (Form EMS 5208) provided by the Employment Security department quarterly.
Bonding
N/A
Financial
N/A
License Required
None
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Washington.

Business Entity Registration Forms
License Regulations
PEO must register with the Employment Security Department.

Washington State - PEO Forms & Information
Benefit Plans
PEO-sponsored and Client-sponsored health plans not addressed in Washington State laws or regulations.

Agency Web Site: Washington State Office of Insurance Commissioner

West Virginia

Reporting
To Drop a Client, the PEO must submit a 1-page form, Termination of Coverage.

Contribution Report and Wage Report (Forms WVUC-A-154 and WVUC-154-A) are due quarterly. For Forms: call the Compliance Enforcement Unit at 304-558-2451 or email ucworkforcecae@wv.gov.
Bonding
N/A
Financial
N/A
License Required
License Required
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in West Virginia.

Business Entity Registration Forms

West Virginia - Business Registration Applications & Instructions
Benefit Plans
Client-sponsored health plans and PEO-sponsored health plans are not addressed in West Virginia laws or regulations.

Agency Web Site: West Virginia Offices of the Insurance Commissioner

Wisconsin

Reporting
Annual Renewal
Bonding
N/A
Financial
N/A
License Required
Registration Required
License Extra
General Business Requirements
Apply to the Dept. of Financial Institutions for a Certificate of Authority to conduct business in Wisconsin.

Business Entity Registration Forms
License Regulations
PEO registration will be required effective July 1, 2009. Final rules and registration forms still in process.

Wisconsin - PEO Statute

Agency Web Site: Wisconsin Department of Regulation & Licensing
Benefit Plans
PEO and/or client can sponsor fully insured benefit plans.
A PEO sponsored self-funded benefit plan will be considered a MEWA.

See: Wisconsin - Bulletins to Insurers

Agency Web Site: Wisconsin Office of the Commissioner of Insurance

Wyoming

Reporting
PEOs must submit quarterly paperwork including client-specific information:

1. Submit a single consolidated quarterly contribution summary report containing summarizing information for all clients;

2. Submit a separate employee wage list for each client;

3. Submit a list of all clients that includes for each client:

Clients name

Clients contact person

Clients contact persons telephone number

Clients mailing address

Clients physical address in Wyoming

Quarterly Reports. Payroll reports and premium payments are due on or before the last day of the month following the end of the reporting period (usually the quarter, but sometimes monthly; the state will inform the employer of when payments are due).
Bonding
N/A
Financial
N/A
License Required
None
License Extra
General Business Requirements
Apply to the Secretary of State for a Certificate of Authority to conduct business in Wyoming.

Business Entity Registration Forms
License Regulations
None required.
Benefit Plans
PEO-sponsored and Client-sponsored health plans not addressed in Wyoming laws or regulations.

Agency Web Site: Wyoming Insurance Department