2013 Indiana Code TITLE 22. LABOR AND SAFETY ARTICLE 4. UNEMPLOYMENT COMPENSATION SYSTEM CHAPTER 6.5. PROFESSIONAL EMPLOYER ORGANIZATIONS
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IC 22-4-6.5
Chapter 6.5. Professional Employer Organizations
IC 22-4-6.5-1
"Client"
Sec. 1. As used in this chapter, "client" has the meaning set forth
in IC 27-16-2-3.
As added by P.L.33-2013, SEC.1.
IC 22-4-6.5-2
"Client level reporting method"
Sec. 2. As used in this chapter, "client level reporting method" has
the meaning set forth in section 11(a) of this chapter.
As added by P.L.33-2013, SEC.1.
IC 22-4-6.5-3
"Covered employee"
Sec. 3. As used in this chapter, "covered employee" has the
meaning set forth in IC 27-16-2-8.
As added by P.L.33-2013, SEC.1.
IC 22-4-6.5-4
"Professional employer agreement"
Sec. 4. As used in this chapter, "professional employer
agreement" has the meaning set forth in IC 27-16-2-12.
As added by P.L.33-2013, SEC.1.
IC 22-4-6.5-5
"Professional employer organization"
Sec. 5. As used in this chapter, "professional employer
organization" or "PEO" has the meaning set forth in IC 27-16-2-13.
As added by P.L.33-2013, SEC.1.
IC 22-4-6.5-6
"PEO level reporting method"
Sec. 6. As used in this chapter, "PEO level reporting method" has
the meaning set forth in section 9(a) of this chapter.
As added by P.L.33-2013, SEC.1.
IC 22-4-6.5-7
Covered employee of PEO is PEO employee for purposes of
unemployment compensation insurance
Sec. 7. (a) For purposes of this article, a covered employee of a
PEO is an employee of the PEO.
(b) A PEO is responsible for the payment of contributions,
surcharges, penalties, and interest assessed under this article on
wages paid by the PEO to the PEO's covered employees during the
term of the professional employer agreement.
As added by P.L.33-2013, SEC.1.
IC 22-4-6.5-8
PEO reporting methods; limitations
Sec. 8. (a) A PEO shall use the client level reporting method to
report and pay all required contributions to the unemployment
compensation fund as required by IC 22-4-10, unless the PEO elects
the PEO level reporting method under section 9 of this chapter.
(b) A PEO that initially elects the PEO level reporting method
under section 9 of this chapter may subsequently elect the client level
reporting method under section 11 of this chapter.
(c) A PEO using the client level reporting method may not change
its reporting method.
(d) Except as provided by IC 22-4-32-21(d), a PEO and its related
entities shall use the same reporting method for all clients.
As added by P.L.33-2013, SEC.1.
IC 22-4-6.5-9
PEO election of PEO level reporting method
Sec. 9. (a) A PEO may elect the PEO level reporting method,
which uses the state employer account number and contribution rate
of the PEO to report and pay all required contributions to the
unemployment compensation fund as required by IC 22-4-10.
(b) A PEO shall make the election required by subsection (a) not
later than the following:
(1) December 1, 2013, if the PEO is doing business in Indiana
on July 1, 2013.
(2) The first date the PEO is liable to make contributions under
this article for at least one (1) covered employee, if the PEO
begins doing business in Indiana after July 1, 2013.
(c) The election required by subsection (a) must be made in
writing on forms prescribed by the department.
(d) A PEO that does not make an election under this section shall
use the client level reporting method.
As added by P.L.33-2013, SEC.1.
IC 22-4-6.5-10
PEO use of PEO level reporting method
Sec. 10. (a) The following apply to a PEO that elects to use the
PEO level reporting method:
(1) The PEO shall file all quarterly contribution and wage
reports in accordance with IC 22-4-10-1.
(2) Whenever the PEO enters into a professional employer
agreement with a client, the PEO:
(A) shall notify the department not later than fifteen (15)
days after the end of the quarter in which the professional
employer agreement became effective; and
(B) is subject to IC 22-4-10-6 and IC 22-4-11.5, beginning
on the effective date of the professional employer
agreement.
(3) The PEO shall notify the department in writing on forms
prescribed by the department not later than fifteen (15) days
after the date of the following:
(A) The PEO and a client terminate a professional employer
agreement.
(B) The PEO elects the client level reporting method under
section 11 of this chapter.
After receiving a notice under this subdivision, the department
shall make any changes required by IC 22-4-10-6 and
IC 22-4-11.5.
(b) Except as provided by IC 22-4-32-21(d), a PEO that elects to
use the PEO level reporting method is liable for all contributions,
interest, penalties, and surcharges until the effective date of an
election under section 11 of this chapter by the PEO to change to the
client level reporting method.
As added by P.L.33-2013, SEC.1.
IC 22-4-6.5-11
PEO election of client level reporting method
Sec. 11. (a) A PEO using the PEO level reporting method may
elect the client level reporting method, which uses the state employer
account number and contribution rate of the client to report and pay
all required contributions to the unemployment compensation fund
as required by IC 22-4-10.
(b) A PEO shall make an election under subsection (a) not later
than December 1 of the calendar year before the calendar year in
which the election is effective.
(c) An election under subsection (a) must be made in writing on
forms prescribed by the department.
(d) An election under subsection (a) is effective on January 1 of
the calendar year immediately following the year in which the
department receives the notice described in subsection (c).
As added by P.L.33-2013, SEC.1.
IC 22-4-6.5-12
PEO use of client level reporting method
Sec. 12. The following apply to a PEO that elects to use the client
level reporting method:
(1) Whenever the PEO enters into a professional employer
agreement with a client, the PEO shall notify the department not
later than fifteen (15) days after the end of the quarter in which
the professional employer agreement became effective.
(2) If a client is an employing unit on the date the professional
employer agreement becomes effective, the client retains its
experience balance, liabilities, and wage credits, and
IC 22-4-10-6 does not apply to the client.
(3) If a client is not an employing unit on the date the
professional employer agreement becomes effective, the client
immediately qualifies for an employer experience account
under IC 22-4-7-2(f) and is subject to IC 22-4-11-2(b)(2) for
purposes of establishing an initial contribution rate.
(4) A client is associated with the PEO's employer experience
account by means of the PEO's primary federal employer
identification number (FEIN) for purposes of liability under this
article and federal certification.
(5) Upon the termination of a professional employer agreement
between the PEO and a client:
(A) the client retains the experience balance, liabilities, and
wage credits for the client's employing unit account;
(B) the client's federal employer identification number
(FEIN) becomes the primary FEIN on the employing unit's
account; and
(C) the PEO's FEIN is not associated with the client's
employing unit account after the date:
(i) all outstanding reports are submitted; and
(ii) all outstanding liabilities are paid in full.
As added by P.L.33-2013, SEC.1.
IC 22-4-6.5-13
Client transfers between PEOs; client use of payments in lieu of
contributions
Sec. 13. (a) A client that transfers between PEOs is not subject to
IC 22-4-10-6 and IC 22-4-11.5 whenever:
(1) the PEOs are not commonly owned, managed, or controlled;
and
(2) both PEOs have elected to use the PEO level reporting
method.
(b) The client of a PEO that has elected to use the client level
reporting method may elect to become liable for payments in lieu of
contributions (as defined in IC 22-4-2-32) whenever:
(1) the client is otherwise eligible to make the election; and
(2) the requirements of IC 22-4-10-1 are met.
As added by P.L.33-2013, SEC.1.
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