(a) "Administrative fee" means the fee charged to a client bya professional employer organization for professional employer services. Theadministrative fee shall not be deemed to include any amount of a fee by theprofessional employer organization that is for wages and salaries, benefits,workers' compensation, payroll taxes, withholding, or other assessments paid bythe professional employer organization to or on behalf of covered employeesunder the professional employer agreement.
(b) "Client" means any person who enters into a professionalemployer agreement with a PEO.
(c) "Co-employer" means either a PEO or a client.
(d) "Co-employment relationship" shall mean:
(1) As between co-employers, a relationship whereby therights, duties, and obligations of an employer which arise out of an employmentrelationship have been allocated between co- employers pursuant to aprofessional employer agreement and this chapter and which is intended to be anongoing relationship, rather than a temporary or project specific relationship;
(2) As between each PEO and a covered employee as to which aprofessional employer agreement applies, an employment relationship wherebysuch PEO is entitled to enforce those rights, and obligated to perform thoseduties and obligations, allocated to such PEO by the professional employeragreement and this chapter;
(3) As between each client and a covered employee to which aprofessional employer agreement applies an employment relationship whereby suchclient is entitled to enforce those rights, and obligated to provide andperform those employer obligations allocated to such client by the professionalemployer agreement and this chapter and whereby such client is responsible forany employer right or obligation not otherwise allocated by the professionalemployer agreement or this chapter;
(4) As to rights enforceable by an employee under state law,covered employees shall be entitled to enforce against the PEO those rights:(i) allocated to such PEO by the professional employer agreement and thischapter; or (ii) shared by the PEO and the client and the PEO under theprofessional employer agreement and this chapter. All other rights, duties andobligations enforceable by an employee under the state shall continue to beenforceable against the client pursuant to state law.
(e) "Covered employee" means an individual having aco-employment relationship with a PEO and a client who meets all of thefollowing criteria: (1) the individual has executed an employment agreementwith the PEO; (2) the individual is a party to a co-employment relationshipwith a PEO and a client; and (3) the individual's co-employment relationship ispursuant to a professional employer agreement subject to this chapter.Individuals who are officers, directors, shareholders, partners, and managersof the client will be covered employees to the extent the PEO and the clienthave expressly agreed in the professional employer agreement that suchindividuals would be covered employees and provided such individuals meet thecriteria of this paragraph and act as operational managers or perform servicesfor the client.
(f) "Department" means the department of administration,division of taxation.
(g) "Director" means the tax administrator.
(h) "Person" means any individual, partnership, corporation,limited liability company, association, or any other form of legally recognizedentity.
(i) "Professional employer agreement" means a writtencontract by and between a client and a PEO that provides:
(1) For the co-employment of covered employees;
(2) For the allocation and sharing between the client and thePEO employer responsibilities (including hiring, firing and disciplining) withrespect to the covered employees; and
(3) That the PEO and the client assume the responsibilitiesrequired by this chapter.
(j) "Professional employer organization" or "PEO" means anyperson engaged in the business of providing professional employer services. Aperson engaged in the business of providing professional employer servicesshall be subject to registration under this chapter regardless of its use ofthe term "professional employer organization," "PEO," "staff leasing company,""registered staff leasing company," "employee leasing company," or any othername.
The following shall not be deemed to be professional employerorganizations or professional employment services for purposes of this chapter:
(1) Arrangements wherein a person, whose principal businessactivity is not entering into professional employer arrangements and which doesnot hold itself out as a PEO, shares employees with a commonly owned companywithin the meaning of sections 414(b) and (c) of the Internal Revenue Code of1986, as amended;
(2) Arrangements by which a person assumes responsibility forthe product produced or service performed by such person or his/her agents andretains and exercises primary direction and control over the work performed bythe individuals whose services are supplied under such arrangements; or
(3) Providing temporary help services.
(k) "Professional Employer Services" shall mean the serviceof entering into co- employment relationships under this chapter in which allor a majority of the employees providing services to a client or to a divisionor work unit of client are covered employees.
(l) "Registrant" means a PEO registered under this chapter.
(m) "Temporary help services" means a service consisting of aperson:
(1) Recruiting and hiring its own employees;
(2) Finding other organizations that need the services ofthose employees;
(3) Assigning those employees to perform work at or servicesfor the other organizations to support or supplement the other organizations'workforces, or to provide assistance in special work situations such as, butnot limited to, employee absences, skill shortages, seasonal workloads, or toperform special assignments or projects, and
(4) Customarily attempting to reassign the employees to otherorganizations when they finish each assignment.
(a) "Administrative fee" means the fee charged to a client bya professional employer organization for professional employer services. Theadministrative fee shall not be deemed to include any amount of a fee by theprofessional employer organization that is for wages and salaries, benefits,workers' compensation, payroll taxes, withholding, or other assessments paid bythe professional employer organization to or on behalf of covered employeesunder the professional employer agreement.
(b) "Client" means any person who enters into a professionalemployer agreement with a PEO.
(c) "Co-employer" means either a PEO or a client.
(d) "Co-employment relationship" shall mean:
(1) As between co-employers, a relationship whereby therights, duties, and obligations of an employer which arise out of an employmentrelationship have been allocated between co- employers pursuant to aprofessional employer agreement and this chapter and which is intended to be anongoing relationship, rather than a temporary or project specific relationship;
(2) As between each PEO and a covered employee as to which aprofessional employer agreement applies, an employment relationship wherebysuch PEO is entitled to enforce those rights, and obligated to perform thoseduties and obligations, allocated to such PEO by the professional employeragreement and this chapter;
(3) As between each client and a covered employee to which aprofessional employer agreement applies an employment relationship whereby suchclient is entitled to enforce those rights, and obligated to provide andperform those employer obligations allocated to such client by the professionalemployer agreement and this chapter and whereby such client is responsible forany employer right or obligation not otherwise allocated by the professionalemployer agreement or this chapter;
(4) As to rights enforceable by an employee under state law,covered employees shall be entitled to enforce against the PEO those rights:(i) allocated to such PEO by the professional employer agreement and thischapter; or (ii) shared by the PEO and the client and the PEO under theprofessional employer agreement and this chapter. All other rights, duties andobligations enforceable by an employee under the state shall continue to beenforceable against the client pursuant to state law.
(e) "Covered employee" means an individual having aco-employment relationship with a PEO and a client who meets all of thefollowing criteria: (1) the individual has executed an employment agreementwith the PEO; (2) the individual is a party to a co-employment relationshipwith a PEO and a client; and (3) the individual's co-employment relationship ispursuant to a professional employer agreement subject to this chapter.Individuals who are officers, directors, shareholders, partners, and managersof the client will be covered employees to the extent the PEO and the clienthave expressly agreed in the professional employer agreement that suchindividuals would be covered employees and provided such individuals meet thecriteria of this paragraph and act as operational managers or perform servicesfor the client.
(f) "Department" means the department of administration,division of taxation.
(g) "Director" means the tax administrator.
(h) "Person" means any individual, partnership, corporation,limited liability company, association, or any other form of legally recognizedentity.
(i) "Professional employer agreement" means a writtencontract by and between a client and a PEO that provides:
(1) For the co-employment of covered employees;
(2) For the allocation and sharing between the client and thePEO employer responsibilities (including hiring, firing and disciplining) withrespect to the covered employees; and
(3) That the PEO and the client assume the responsibilitiesrequired by this chapter.
(j) "Professional employer organization" or "PEO" means anyperson engaged in the business of providing professional employer services. Aperson engaged in the business of providing professional employer servicesshall be subject to registration under this chapter regardless of its use ofthe term "professional employer organization," "PEO," "staff leasing company,""registered staff leasing company," "employee leasing company," or any othername.
The following shall not be deemed to be professional employerorganizations or professional employment services for purposes of this chapter:
(1) Arrangements wherein a person, whose principal businessactivity is not entering into professional employer arrangements and which doesnot hold itself out as a PEO, shares employees with a commonly owned companywithin the meaning of sections 414(b) and (c) of the Internal Revenue Code of1986, as amended;
(2) Arrangements by which a person assumes responsibility forthe product produced or service performed by such person or his/her agents andretains and exercises primary direction and control over the work performed bythe individuals whose services are supplied under such arrangements; or
(3) Providing temporary help services.
(k) "Professional Employer Services" shall mean the serviceof entering into co- employment relationships under this chapter in which allor a majority of the employees providing services to a client or to a divisionor work unit of client are covered employees.
(l) "Registrant" means a PEO registered under this chapter.
(m) "Temporary help services" means a service consisting of aperson:
(1) Recruiting and hiring its own employees;
(2) Finding other organizations that need the services ofthose employees;
(3) Assigning those employees to perform work at or servicesfor the other organizations to support or supplement the other organizations'workforces, or to provide assistance in special work situations such as, butnot limited to, employee absences, skill shortages, seasonal workloads, or toperform special assignments or projects, and
(4) Customarily attempting to reassign the employees to otherorganizations when they finish each assignment.
(a) "Administrative fee" means the fee charged to a client bya professional employer organization for professional employer services. Theadministrative fee shall not be deemed to include any amount of a fee by theprofessional employer organization that is for wages and salaries, benefits,workers' compensation, payroll taxes, withholding, or other assessments paid bythe professional employer organization to or on behalf of covered employeesunder the professional employer agreement.
(b) "Client" means any person who enters into a professionalemployer agreement with a PEO.
(c) "Co-employer" means either a PEO or a client.
(d) "Co-employment relationship" shall mean:
(1) As between co-employers, a relationship whereby therights, duties, and obligations of an employer which arise out of an employmentrelationship have been allocated between co- employers pursuant to aprofessional employer agreement and this chapter and which is intended to be anongoing relationship, rather than a temporary or project specific relationship;
(2) As between each PEO and a covered employee as to which aprofessional employer agreement applies, an employment relationship wherebysuch PEO is entitled to enforce those rights, and obligated to perform thoseduties and obligations, allocated to such PEO by the professional employeragreement and this chapter;
(3) As between each client and a covered employee to which aprofessional employer agreement applies an employment relationship whereby suchclient is entitled to enforce those rights, and obligated to provide andperform those employer obligations allocated to such client by the professionalemployer agreement and this chapter and whereby such client is responsible forany employer right or obligation not otherwise allocated by the professionalemployer agreement or this chapter;
(4) As to rights enforceable by an employee under state law,covered employees shall be entitled to enforce against the PEO those rights:(i) allocated to such PEO by the professional employer agreement and thischapter; or (ii) shared by the PEO and the client and the PEO under theprofessional employer agreement and this chapter. All other rights, duties andobligations enforceable by an employee under the state shall continue to beenforceable against the client pursuant to state law.
(e) "Covered employee" means an individual having aco-employment relationship with a PEO and a client who meets all of thefollowing criteria: (1) the individual has executed an employment agreementwith the PEO; (2) the individual is a party to a co-employment relationshipwith a PEO and a client; and (3) the individual's co-employment relationship ispursuant to a professional employer agreement subject to this chapter.Individuals who are officers, directors, shareholders, partners, and managersof the client will be covered employees to the extent the PEO and the clienthave expressly agreed in the professional employer agreement that suchindividuals would be covered employees and provided such individuals meet thecriteria of this paragraph and act as operational managers or perform servicesfor the client.
(f) "Department" means the department of administration,division of taxation.
(g) "Director" means the tax administrator.
(h) "Person" means any individual, partnership, corporation,limited liability company, association, or any other form of legally recognizedentity.
(i) "Professional employer agreement" means a writtencontract by and between a client and a PEO that provides:
(1) For the co-employment of covered employees;
(2) For the allocation and sharing between the client and thePEO employer responsibilities (including hiring, firing and disciplining) withrespect to the covered employees; and
(3) That the PEO and the client assume the responsibilitiesrequired by this chapter.
(j) "Professional employer organization" or "PEO" means anyperson engaged in the business of providing professional employer services. Aperson engaged in the business of providing professional employer servicesshall be subject to registration under this chapter regardless of its use ofthe term "professional employer organization," "PEO," "staff leasing company,""registered staff leasing company," "employee leasing company," or any othername.
The following shall not be deemed to be professional employerorganizations or professional employment services for purposes of this chapter:
(1) Arrangements wherein a person, whose principal businessactivity is not entering into professional employer arrangements and which doesnot hold itself out as a PEO, shares employees with a commonly owned companywithin the meaning of sections 414(b) and (c) of the Internal Revenue Code of1986, as amended;
(2) Arrangements by which a person assumes responsibility forthe product produced or service performed by such person or his/her agents andretains and exercises primary direction and control over the work performed bythe individuals whose services are supplied under such arrangements; or
(3) Providing temporary help services.
(k) "Professional Employer Services" shall mean the serviceof entering into co- employment relationships under this chapter in which allor a majority of the employees providing services to a client or to a divisionor work unit of client are covered employees.
(l) "Registrant" means a PEO registered under this chapter.
(m) "Temporary help services" means a service consisting of aperson:
(1) Recruiting and hiring its own employees;
(2) Finding other organizations that need the services ofthose employees;
(3) Assigning those employees to perform work at or servicesfor the other organizations to support or supplement the other organizations'workforces, or to provide assistance in special work situations such as, butnot limited to, employee absences, skill shortages, seasonal workloads, or toperform special assignments or projects, and
(4) Customarily attempting to reassign the employees to otherorganizations when they finish each assignment.
