2014 Indiana Code TITLE 27. INSURANCE ARTICLE 16. PROFESSIONAL EMPLOYER ORGANIZATIONS CHAPTER 6. FINANCIAL REQUIREMENTS
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IC 27-16-6
Chapter 6. Financial Requirements
IC 27-16-6-1
Financial requirements
Sec. 1. (a) A PEO or PEO group shall do one (1) of the following:
(1) Maintain positive working capital, as reflected in the
financial statement submitted to the department by the PEO or
PEO group under IC 27-16-4.
(2) If the PEO or PEO group does not meet the requirement of
subdivision (1), maintain any of the following with a minimum
aggregate value in an amount that is at least sufficient to
eliminate the PEO's or PEO group's negative working capital
plus one hundred thousand dollars ($100,000):
(A) A surety bond.
(B) An irrevocable letter of credit.
(C) Cash.
(D) A combination of items listed in clauses (A) through (C).
(b) An instrument or cash described in subsection (a)(2) must be
held by an institution designated by the department, securing
payment by the PEO or PEO group of all taxes, wages, benefits, or
other entitlement due to or with respect to covered employees in the
event that the PEO or PEO group does not make the payments when
due.
As added by P.L.245-2005, SEC.7. Amended by P.L.11-2011,
SEC.44.
IC 27-16-6-2
Calculation of positive working capital
Sec. 2. An instrument or cash described in section 1(a)(2) of this
chapter must not be included in the calculation of the positive
working capital described in section 1(a)(1) of this chapter.
As added by P.L.245-2005, SEC.7. Amended by P.L.11-2011,
SEC.45.
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