SUTA by State

Single Rate

Range of Rates

Alaska

SUTA

Client

SUTA Rates

1.000 - 5.400

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

35800 - 0

SUI Rates

1.000 - 5.400

SUI Extra Information

Entering

N/A

Exiting

There is no law requiring termination of SUTA or FUTA.

Since the PEO reports under the Clients account, no impact is likely when the PEO relationship is terminated. Keep in mind, Because there are severe penalties for not carrying Workers? Compensation coverage, it may not be possible for the PEO to cancel the service contract without giving a reasonable time for the client to obtain new coverage. If an issue should arise where the PEO needs to cancel quickly because of non-payment, it is suggested legal counsel should get involved.

All co-employees should recieve written notice.

SUI Details

Employers Reporting Unit for SUTA Contributions: Client, unless the PEO can pass direction & control test.
See: Alaska - Reporting Requirements for Employee Leasing Arrangements

Employer UI Registration: PDF Form or On-Line

Agency Web Site: Alaska Department of Labor

California

SUTA

PEO

SUTA Rates

3.400

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

7000 - 0

SUI Rates

1.500 - 6.200

SUI Extra Information

Entering

Where PEO obtains coverage for co-employees, Client experience, classification & rates must be used to determine premium paid by PEO for co-employees. A separate policy shall contain the name of the PEO as the named insured, but the experience modification, normal anniversary date, classification and rates applicable to the client shall apply to the policy.

The separate policy shall be endorsed with the client?s name and address, as well as an indication that the policy covers a PEO arrangement. By exception, if less than a majority of employees are transferred, or if the client is not eligible for experience rating, this rule does not apply.

The PEO will be the named insured under the policy, and the employee leasing endorsement naming the client must be attached to the policy. The experience modification, classification(s), and rates applicable to the client will be used to determine the premium for leased employees.

Exiting

There is no specific law involving termination of the SUTA or FUTA.

Must give sufficient notice to the client you are terminating.

A Client can reactivate its experience account within 3 years of the inactive date.

SUI Details

Employer/Reporting Unit for SUTA contributions: PEO

California Unemployment & Disability Tax Registration Form

Agency Web Site: California Employment Development Dept.

Iowa

SUTA

Client

SUTA Rates

1.000 - 8.000

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

26800

SUI Rates

0.000 - 9.000

SUI Extra Information

Entering

The PEO must inform the workers compensation carrier of the date and nature of any change, such as entering a new service contract.

Incoming Client experience for policy purposes: the experience mod of the party buying the coverage applies to the premium developed under the Policy.

Exiting

The PEO must notify the state of termination. Since the state requires that the PEO report under the Client's number and rate, if the service contract is terminated, it would have little effect on the reporting, except as to who would be preparing and receiving the report.

Calculation of Mod. Outgoing method for calculating the mod when the Client terminates the PEO relationship: if the carrier has extracted and reported Client data from the PEO policy, the NCCI will develop an experience mod utilizing the reported data. If the carrier does not report data in that way, the mod of the PEO will be applied to the Client policy until a mod is established for the Client (up to 3 years).

SUI Details

Employer/Reporting Unit for SUTA contributions: PEO can submit reports, but must use client account number and experience rate, unless it can prove it is the sole, common law employer of all client site employees.

Iowa - UI Tax Registration Form

Iowa - UI Tax Information for Employers

Agency Web Site: Iowa Unemployment Insurance (UI) Services Division

Louisiana

SUTA

Client

SUTA Rates

0.100 - 6.200

SUTA Extra Information

SUTA New Extra Information

New Employer rate is average rate for each SI

SUTA Subject Wage Max

7700 - 0

SUI Rates

0.100 - 6.200

SUI Extra Information

Entering

PEO must inform the carrier of the new Client. Who pays for and handles the duties involved in having workers' compensation coverage should be governed by the service contract.

Exiting

No law involving SUTA or FUTA.

Adding a Client. The PEO must file a Status Report on each new Client.

Dropping a Client. When a Client drops, the PEO is also advised to notify the SUI office (although this is not required), since the Client is required to file its own new Status Report (or have its new PEO file a new Status Report), which may or may not be done promptly. In accordance with 2012 amendments to the Employment Security Law: Notice of separation. Each employer will file with the Administrator a notice of separation from service with respect to each employee who leaves its employ for any cause that may be potentially disqualifying and will provide the date of separation, a full explanation of the cause, and all requested information about payments made to the separated employee. The notice will be mailed, delivered, or transmitted to the Administrator and the separated employee within three days after the date on which the separation from service occurred.

For cancellation of coverage-the state requires a 30 day notice.

Experience modification factor shall be calculated using the experience of the Client, which factor shall survive termination of the PEO contract, and shall, upon termination of the professional services agreement, be reported separately in accordance with the applicable rating plan.

SUI Details

Employer/Reporting Unit for SUTA contributions: PEO or each client/co-employer.

Employer Application for Louisiana Unemployment Account

Agency Web Site: Louisiana Workforce Commission - Unemployment Insurance

Massachusetts

SUTA

Client

SUTA Rates

2.830

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

14000

SUI Rates

1.260 - 12.270

SUI Extra Information

Entering

Upon signing a service contract, notice to the Department is required at least 60 days prior to the next due date for payment of SUI taxes. Notice must be signed by the Client and can be mailed by the PEO.

Exiting

SUTA- When a service contract is terminated, the former Client must notify the Department within 30 days of the termination.

Exiting Work Comp. No requirements to report terminations to the Workers Comp Rating Bureau. The PEO must inform the carrier and the affected clients when the PEO decides to discontinue coverage.

There is no aw involving FUTA.

SUI Details

Employers Reporting Unit for SUTA Contributions: Client; PEO can submit reports, but must use client account number and experience rate. Additional reporting requirements also apply.
See: http://www.mass.gov/lwd/unemployment-insur/resources/regulations/for-businesses/regulations-relating-to-leasing-companies-and.html}

Mississippi

SUTA

Client

SUTA Rates

1.500

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

14000

SUI Rates

0.950 - 5.400

SUI Extra Information

Entering

Client experience for policy purposes: experience mod of the party purchasing coverage applies to the premium developed under the policy.

Exiting

Since MDES requires the Client to be registered separately from the PEO, when the Client exits the PEO relationship, there is little impact on the Client's status with MDES. The Client will need to obtain another MDES account number.

Method for calculating mod: if the carrier extracts & reports the Client data from the PEO policy, the NCCI will develop an experience mod utilizing the reported data. If the carrier does not report data, the mod of the PEO will be applied to the Client policy until a mod is established for the Client (up to three years).

SUI Details

Employer/Reporting Unit for SUTA contributions: Client must maintain and report under its own SUTA account. PEO is not recognized as an employer or co-employer of client employees in Mississippi.

Mississippi - Employer UI Registration: PDF Form or On-line

Agency Web Site: Mississippi Dept. of Employment Security

Missouri

SUTA

PEO

SUTA Rates

3.510

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

13000

SUI Rates

0.000 - 7.800

SUI Extra Information

Entering

Experience mod of the party buying the coverage applies to the premium developed under the policy. PEO must maintain data by Client.

Exiting

Methodology for calculation of mod when Client terminates the PEO relationship: if the carrier extracts and reports Client data from the PEO policy, the NCCI will develop an experience mod utilizing the reported data. If the carrier does not report the data, the mod of the PEO will be applied to the Client policy until a mod is established for the Client (up to 3 years).

If the PEO is notified by the carrier that the policy is not renewed or cancelled, the PEO shall notify by certified mail, within 15 days of the receipt of the notice, all the Clients for which there is an employee leasing arrangement covered under the to-be-canceled policy. Notice must be 30-days.

If cancelling a 60 day notice is required.

SUI Details

Employer/Reporting Unit for SUTA contributions: PEO

Online Combined Business Registration Form

Rules Regarding Lessor Employing Units (scroll down to 8 CSR 10-4.160 − 4.170)

Lessor Employing Units Forms (scroll down to "Forms for Lessor Employing Units")

Agency Web Site: Missouri Dept. of Labor - Division of Employment Security

New Hampshire

SUTA

PEO

SUTA Rates

3.700

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

14000 - 0

SUI Rates

1.100 - 8.000

SUI Extra Information

Entering

Incoming Client Experience. Experience modification of party purchasing coverage applies to premium developed under the policy.

Exiting

SUTA-The PEO must notify Employment Security in writing within 20 days of termination (or signing) of a new service contract, providing Client's name, physical address, job sites (if more than one), industry, and primary product or service.

Employment Security

There is no law involving the termination of FUTA.

Upon exiting the PEO relationship, the Client will receive its claims data to be used in calculating the Client's premium.

Cancellation of Coverage. The carrier must provide a Certificate of Insurance to the licensing authority with a 30-day termination notice provision. The carrier must provide 30-day's notice prior to cancellation. The agency will then inform all Clients and may fine the PEO for failure to provide Workers Compensation coverage.

SUI Details

Employers Reporting Unit for SUTA Contributions: PEO, if licensed.

New Hampshire - Employer UI Registration Form

Agency Web Site: New Hampshire Department of Employment Security

New Mexico

SUTA

PEO

SUTA Rates

2.000

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

22400 - 0

SUI Rates

0.050 - 5.400

SUI Extra Information

Entering

For policy purposes, an incoming Client's experience is treated thus: the PEO modifier must be revised to incorporate the incoming Client's mod. Insurers will file proof of coverage with NCCI upon commencing the PEO arrangement.

Exiting

A Client may not recover its experience, but a partial transfer of experience can be done with the approval of both parties.

Methodology for calculating the mod when the Client terminates the PEO relationship: the mod is developed from the date and applied to a new policy.

Every covered employer must direct the carrier to issue a certificate of coverage to the director of workers compensation administration. If the policy is cancelled, the carrier must notify the director and NCCI within 10 days of such cancellation.

When any employee leasing arrangement terminates, all prior experience of the Client's own direct workers and its previously leased workers shall be used in rating the client. Every rating organization and insurer shall make a reasonable effort, including a special audit if necessary, to obtain and verify the information necessary to calculate a rating based upon experience, where premium is sufficient to make such rating applicable.

SUI Details

Employers Reporting Unit for SUTA Contributions: PEO

New Mexico - Employer UI Registration: PDF Form or On-Line

Agency Web Site: New Mexico Department of Workforce Solutions

North Carolina

SUTA

PEO

SUTA Rates

1.200

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

20400 - 0

SUI Rates

0.000 - 6.840

SUI Extra Information

Entering

Experience mod of party purchasing coverage applies to the premium developed under the policy.

Exiting

Method for calculation of mod when Client terminates: if carrier extracts and reports client data from the PEO policy, the NCCI will develop an experience mod utilizing the reported data; if the carrier does not report data, the mod of the PEO will be applied to the Client policy until a mod is established for the Client (up to three years).

There is no law involving the termination of SUTA, FUTA, or Workers Compensation.

SUI Details

Employer/Reporting Unit for SUTA contributions: PEO, if licensed.

N.C. Employer Status Report (SUTA Registration Form): PDF Form or https://www.ncesc.com/business/web604/web604main.asp?init=true|On-line Form

Agency Web Site: N.C. Employment Security Commission

Ohio

SUTA

Client

SUTA Rates

2.700

SUTA Extra Information

Employer of Record-Client

SUTA New Extra Information

SUTA Subject Wage Max

9000 - 0

SUI Rates

0.700 - 11.400

SUI Extra Information

Entering

Confidentiality of Client Lists. Ohio requires that the PEO report the names of its Clients, and this list is a public record and can be obtained by another PEO unless the submitting PEO states in a letter that the Client list is a trade secret. This should be done in order to protect the confidentiality of the list.

Within 30 days of forming the PEO arrangement, the PEO must notify the Bureau of the Client name, BWC risk number, and federal tax identification number.

Succeeding Employer. When a PEO arrangement is formed, the PEO becomes the succeeding employer for workers compensation purposes and receives the basic / manual rate.

Exiting

The PEO must report to BWC all Clients that drop from the PEO's client base.

For all drops and additions to the PEOs roster of Clients, the PEO must submit Form UA-3 to BWC Risk Technical Services by facsimile or mail.

SUI Details

Employer/Reporting Unit for SUTA contributions: PEO or Client/Co-employer, depending on "Employer of Record" determination.

Ohio - Employer UI Registration Form

Agency Web Site: Dept. of Job & Family Services - Office of Unemployment Comp.

South Carolina

SUTA

Client

SUTA Rates

2.210

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

12000

SUI Rates

0.098 - 8.686

SUI Extra Information

Entering

Treatment of incoming Client experience for policy purposes: experience mod of party buying coverage applies to the premium developed under the policy.

Exiting

The workers compensation carrier cannot plead as a defense to an employee's claim for benefits any defects in the performance of the service contract between the PEO and the Client.

Calculating mod when Client leaves: If the carrier extracts and reports Client data from PEO policy, the NCCI will develop an experience mod utilizing the reported data. If carrier does not report data, the mod of the PEO will be applied to the Client policy until a mod is established for the Client (up to 3 years).

SUI Details

Employer/Reporting Unit for SUTA contributions: Taxes reported by client account, but paid by licensed PEO.

S.C. Employer Status Report (SUTA Registration Form)

S.C. Unemployment Insurance - Forms & Information

Agency Web Site: S.C. Employment Security Commission

South Dakota

SUTA

Client

SUTA Rates

1.750

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

12000

SUI Rates

0.000 - 10.030

SUI Extra Information

Entering

Experience mod of the party purchasing coverage applies to the premium developed under the policy.

Exiting

Calculating mod when Client leaves: If the carrier extracts and reports Client data from the PEO policy, the NCCI will develop an experience mod utilizing the reported data. If the carrier does not report data, the mod of the PEO will be applied to the Client policy until a mod is established for the Client (up to 3 years).

SUTA-If the contractual relationship between the professional employer organization and the client company is terminated, then the co-employees employment with the professional employer organization is also terminated.

There is no law involving the termination of FUTA.

SUI Details

Employers Reporting Unit for SUTA Contributions: PEO, if it is considered the employer of record; otherwise, the client account number and experience rate must be used.

South Dakota - Employer UI Registration: PDF Form or On-Line

Agency Web Site: South Dakota Dept. of Labor - Unemployment Insurance

Tennessee

SUTA

PEO

SUTA Rates

2.700

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

9000

SUI Rates

0.500 - 10.000

SUI Extra Information

Entering

Incoming Client experience treatment for policy purposes: experience mod of the party purchasing coverage applies to premium developed under the policy.

Exiting

SUTA-PEO must apply for and report SUI taxes using separate account numbers for each Client. The contribution rate will be determined on an aggregate basis taking into account the contributions, benefit charges and payroll of the PEO and each Client during the time the Client was a Client of the PEO. Any PEO that does not have 36 months of history will be assigned the new employer rate. The account number for each client is obtained by filing an Application for Client Number.

Method for calculating the mod when the Client terminates the PEO relationship: if the carrier extracts and reports the Client data from the PEO policy, the NCCI will develop an experience mod using the reported data, but if the Carrier does not report the data, the mod of the PEO will be applied to the Client policy until a mod is established for the Client (up to three years).

There is no law involving the termination of FUTA.

SUI Details

Employer/Reporting Unit for SUTA contributions: PEO, using separate client account numbers. See: Amendment to Staff Leasing Code for SUTA Treatment

Tennessee Application for Employer Number (SUTA)

Tennessee Application for Client Number (SUTA)

Agency Web Site: Tennessee Dept. of Labor & Workforce Development

Texas

SUTA

PEO

SUTA Rates

2.700

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

9000

SUI Rates

0.610 - 7.580

SUI Extra Information

Entering

Experience mod of the party purchasing coverage applies to the premium developed under the policy.

Exiting

SUI Details

Employer/Reporting Unit for SUTA contributions: PEO (licensed).

Texas Unemployment Tax Registration (On-Line)

Texas Workforce Commission - Businesses & Employers Home Page

Agency Web Site: Texas Workforce Commission

Utah

SUTA

PEO

SUTA Rates

0.500 - 9.500

SUTA Extra Information

SUTA New Extra Information

Industry Average

SUTA Subject Wage Max

29500

SUI Rates

0.500 - 9.500

SUI Extra Information

Entering

Client modifiers must be applied to develop the premium under the policy.

Exiting

Termination. Method for calculating mod when Client leaves the PEO relationship: the mod must be developed based on experience of the Client. At the termination of the professional employer agreement, if requested by the client, the insurer shall provide the client records regarding the loss experience related to workers' compensation insurance provided to a covered employee pursuant to the professional employer agreement; and the insurer shall notify a client if the workers' compensation coverage for the client is terminated.

There is no law involving the termination of SUTA, FUTA or Workers Compensation.

SUI Details

Employers Reporting Unit for SUTA Contributions: Licensed PEO.

Utah - Employer UI Registration: PDF Form or On-Line

Agency Web Site: Department of Workforce Services

Vermont

SUTA

Client

SUTA Rates

1.000

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

16000

SUI Rates

1.300 - 8.400

SUI Extra Information

Entering

N/A

Exiting

The PEO must notify the SUI commission within 10 days after a service contract is terminated of the date of termination.

The workers compensation carrier must notify the Department and the Client 30 days prior to the date coverage is cancelled or it lapses. The PEO must notify the Department of the date when the PEO and Client arrangement is terminated. The carrier must notify the state and the Client of any lapsed coverage or request by the PEO to terminate coverage or of any other reason for termination.

There is no law involving the termination of FUTA.

SUI Details

Employer/Reporting Unit for SUTA contributions: PEO, using separate client account numbers and experience rating. See: Employee Leasing Statute - Dept. of Labor

Vermont - Employer UI Registration: PDF Form or On-Line

Agency Web Site: Vermont Department of Labor

Wisconsin

SUTA

PEO

SUTA Rates

3.600

SUTA Extra Information

SUTA New Extra Information

SUTA Subject Wage Max

12000

SUI Rates

0.270 - 9.800

SUI Extra Information

Payrolls $500,000+ .70%-9.80%

Entering

N/A

Exiting

SUTA-When the service contract terminates, both the PEO and the Client must notify the Department of Workforce Development within 10 working days of the termination. Since the Client is reported under its own number and rate, there will be little if any change in SUTA circumstances caused by the termination.

Workers Compensation- The PEO may cancel the WC policy during the policy period if both the PEO and the client agree to the cancellation, the cancellation is confirmed by the PEO promptly providing written confirmation of the cancellation to the client or by the client agreeing.

There is no law involving the termination of FUTA.

SUI Details

New Business Rate: 3.25% or 3.40% (payrolls $500,000 or more)
Employers Reporting Unit for SUTA Contributions: PEO, if certain criteria are met.
See: Wisconsin - UI / PEO Definition

Wisconsin - Business UI Registration: PDF Form or On-Line

Agency Web Site: Wisconsin Dept. of Workplace Development - Unemployment Insurance