2014 Indiana Code TITLE 27. INSURANCE ARTICLE 16. PROFESSIONAL EMPLOYER ORGANIZATIONS CHAPTER 2. DEFINITIONS
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IC 27-16-2
Chapter 2. Definitions
IC 27-16-2-1
Application of definitions
Sec. 1. The definitions in this chapter apply throughout this article.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-2
"Administrative fee"
Sec. 2. (a) "Administrative fee" means the fee charged to a client
by a professional employer organization for professional employer
services.
(b) The term does not include any amount charged to a client by
a professional employer organization for wages and salaries, benefits,
worker's compensation, payroll taxes, withholding, or other
assessments paid by a professional employer organization to or on
behalf of a covered employee.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-3
"Client"
Sec. 3. "Client" means a person that enters into a professional
employer agreement with a professional employer organization.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-4
"Co-employed"
Sec. 4. "Co-employed" means that an individual is
contemporaneously employed by both a client and a professional
employer organization.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-5
"Co-employer"
Sec. 5. "Co-employer" refers to a client or a professional employer
organization that has entered into a professional employer agreement
and has a relationship with a co-employed individual.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-6
"Co-employment relationship"
Sec. 6. "Co-employment relationship" means a relationship:
(1) between a:
(A) client and a professional employer organization; or
(B) co-employer and a covered employee; and
(2) that results from the client and the professional employer
organization entering into a professional employer agreement.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-7
"Commissioner"
Sec. 7. "Commissioner" refers to the insurance commissioner
appointed under IC 27-1-1-2.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-8
"Covered employee"
Sec. 8. (a) "Covered employee" means an individual who is
co-employed.
(b) The term includes an individual who is an officer, a director,
a shareholder, a partner, or a manager of a client to the extent the
professional employer organization and the client expressly agree that
the individual:
(1) is described in subsection (a); and
(2) acts as an operational manager or performs day to day
operational services for the client;
as reflected in the professional employer agreement.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-9
"Department"
Sec. 9. "Department" refers to the department of insurance created
by IC 27-1-1-1.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-10
"PEO group"
Sec. 10. "PEO group" means two (2) or more professional
employer organizations that are majority owned or commonly
controlled by the same entity, parent, or controlling person.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-11
"Person"
Sec. 11. "Person" means an individual, a partnership, a
corporation, a limited liability company, an association, or another
legally recognized entity.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-12
"Professional employer agreement"
Sec. 12. "Professional employer agreement" means a written
contract between a person and a professional employer organization:
(1) under which all or a majority of the person's employees
become covered employees;
(2) that provides for the allocation of employer rights and
obligations between the person and the professional employer
organization with respect to the covered employees; and
(3) that specifies the professional employer services that will be
provided.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-13
"Professional employer organization" or "PEO"
Sec. 13. (a) "Professional employer organization" or "PEO" means
a person engaged in the business of providing professional employer
services.
(b) The term does not include the following:
(1) An arrangement through which a person:
(A) whose principal business activity is an activity other than
entering into professional employer agreements; and
(B) that does not hold the person out as a professional
employer organization;
shares employees with a commonly owned company within the
meaning of Section 414(b) and 414(c) of the Internal Revenue
Code of 1986, as amended.
(2) An independent contractor arrangement through which a
person:
(A) assumes responsibility for a product produced or a
service performed by the person or the person's agent; and
(B) retains and exercises primary direction and control over
the work performed by an individual whose services are
supplied under the independent contractor arrangement.
(3) The provision of temporary help services.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-14
"Professional employer services"
Sec. 14. "Professional employer services" means the services that
are provided to a client by a professional employer organization
under a professional employer agreement.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-15
"Temporary help service"
Sec. 15. "Temporary help service" means a service consisting of
a person that:
(1) recruits and hires the person's own employees, not including
an officer, a manager, or a controlling person of a client to
which the person's own employee is assigned by the person;
(2) identifies organizations that need the services of employees
described in subdivision (1);
(3) assigns employees described in subdivision (1) to:
(A) perform work or services for organizations described in
subdivision (2);
(B) support or supplement the workforces of organizations
described in subdivision (2); or
(C) provide assistance in special work situations, including
employee absences, skill shortages, seasonal workloads, and
special assignments or projects; and
(4) customarily attempts to reassign the employees described in
subdivision (1) to other organizations when an assignment
described in subdivision (3) is completed.
As added by P.L.245-2005, SEC.7.
IC 27-16-2-16
"Working capital"
Sec. 16. "Working capital" means the difference between a
person's:
(1) current assets; and
(2) current liabilities;
determined in accordance with generally accepted accounting
principles.
As added by P.L.11-2011, SEC.40.
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