2005 Idaho Code - 72-1349B — FINANCING OF BENEFITS PAYMENTS BY PROFESSIONAL EMPLOYERS AND THEIR CLIENTS

                                  TITLE  72
                      WORKER'S COMPENSATION AND RELATED
                        LAWS -- INDUSTRIAL COMMISSION
                                  CHAPTER 13
                           EMPLOYMENT SECURITY LAW
    72-1349B.  FINANCING OF BENEFITS PAYMENTS BY PROFESSIONAL EMPLOYERS AND
THEIR CLIENTS. (1) Nonprofit organizations and governmental entities excepted.
Financing of benefits for workers assigned by a professional employer to a
nonprofit organization or a governmental entity shall be paid as provided in
section 72-1349A, Idaho Code. Financing of benefits for workers assigned by a
professional employer to any entity other than a nonprofit organization or
governmental entity shall be made in accordance with the provisions of this
section.
    (2)  Liability for contributions. Unless a professional employer meets the
minimum requirements of this chapter, its client shall remain liable as a
covered employer for any payments due under the provisions of this chapter.
During the term of a professional employer arrangement, a professional
employer is liable for the payment of all moneys due pursuant to this chapter
as a result of wages paid to employees assigned to a client company, except
compensation paid to sole proprietors or partners in the client company.
    (3)  Joint and several liability. A client is jointly and severally liable
for any unpaid moneys due under the provisions of this chapter from the
professional employer for wages paid to workers assigned to the client.
    (4)  Reporting requirements. The professional employer shall report and
make all payments under its state employer account number. The professional
employer shall keep separate records and submit separate quarterly wage
reports for each of its clients. The professional employer shall pay
contributions for its clients collectively using the professional employer's
contribution rate unless it elects to pay the contribution for certain clients
individually in which instance the contribution shall be paid using the
individual client's contribution rate.
    (5)  Interested party. As between a professional employer and its client,
the professional employer company shall be deemed to be the interested party
for purposes of section 72-1323, Idaho Code, and all proceedings to determine
rights to benefits under the provisions of this chapter.
    (6)  Temporary workers. The provisions of this section do not apply to an
entity that provides temporary workers on a temporary help basis, provided
that the entity is liable as the employer for all payments due under the
provisions of this chapter as a result of wages paid to those temporary
workers.
    (7)  Rebuttable presumption. When a professional employer assigns workers
to only one (1) client and its affiliates, there is a rebuttable presumption
that the client entered into a professional employer arrangement to avoid
calculation of the proper taxable wage rate. If the professional employer
fails to rebut this presumption, the director, pursuant to section 72-1353,
Idaho Code, shall issue an administrative determination of coverage holding
the client to be the covered employer for purposes of this chapter.
    (8)  A client ceasing to pay wages. Whenever a client ceases to pay wages,
such client shall be subject to termination of its employer account and
experience rating records in the same manner as any other employer, in
accordance with the provisions of sections 72-1351 and 72-1352, Idaho Code. If
a client which has ceased to pay wages subsequently becomes subject to this
chapter because it resumes paying wages, it will be assigned the appropriate
experience rate in accordance with the provisions of section 72-1351, Idaho
Code.
    (9)  Succession of experience factors. Whenever a professional employer
arrangement is entered, the separate account and experience factors of payroll
and reserve shall be transferred to the professional employer for the purpose
of determining the professional employer's contribution rate to be paid on
behalf of the client. Upon the expiration or termination of the professional
employer arrangement, so much of the professional employer's separate account
and experience factors of payroll and reserve as is attributable to the client
shall be transferred to the terminating client for the purpose of determining
the client's subsequent rate of contribution. In the event the professional
employer elects to pay the client's contribution separately as provided in
subsection (4) of this section, then the client's experience factors of
payroll and reserve shall remain with the client employer for the duration of
the professional employer arrangement.