§40-3-120. Required filings by professional employer organizations
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– Payment of contributions – Change of election.
REQUIRED FILINGS BY PROFESSIONAL EMPLOYER ORGANIZATIONS – PAYMENT OF CONTRIBUTIONS – CHANGE OF ELECTION.
A. Each Professional Employer Organization, or PEO, shall file all reports and pay all contributions required by the Employment Security Act of 1980 and the Rules of the Oklahoma Employment Security Commission under one of the following two options. The PEO may choose the option under which it will report and pay. All PEOs that do not exercise their option within the compliance date in subsections C and D of this section shall be assigned to option 1 below. All current client accounts and client accounts set up or acquired after the election shall be reported and paid according to the option elected by the PEO or the option assigned to the PEO if no election is made.
The two options are as follows:
1. The PEO shall file quarterly tax returns to report the wages of all covered employees of all its clients and pay all contributions due on those wages under one account of the PEO; or
2. The PEO shall file quarterly tax returns to report the wages of all covered employees under the direction and control of each client and pay all contributions due on those wages under the account assigned to that client by the Oklahoma Employment Security Commission; provided:
a. a PEO choosing this option shall notify the Oklahoma
Employment Security Commission in writing,
b. a PEO choosing this option shall assist the Commission
in the process of the separation and identification of
the contribution history, the benefit experience
history, and the payroll of each of its clients, and
the Commission shall transfer that experience to the
client account,
c. the Commission shall determine the tax rate of each
client account separately based upon the client's
contribution history, benefit experience history and
actual payroll,
d. if there is not sufficient experience in the client
account after the transfer of experience to establish
a tax rate, the account will be assigned a tax rate
pursuant to Section 3-110.1 of this title, and
e. a PEO choosing this option shall produce all
documentation and information necessary for the
Oklahoma Employment Security Commission to create the
client account within sixty
(60)days of choosing this
option. If the information needed by the Commission
is not produced within this sixty-day period, the PEO
shall revert to reporting under the option provided
for in paragraph 1 of subsection A of this section.
B. Within thirty
(30)days after the end of each calendar quarter, each PEO shall file a list of all its clients setting out the federal employer identification number, the name, the client's contact information and the current registration certificate of the PEO issued pursuant to Section 600.4 of this title. The client list shall be filed in a format prescribed by the Oklahoma Employment Security Commission. Materials submitted pursuant to this section shall be deemed records submitted pursuant to the Oklahoma Professional Employer Organization Recognition and Registration Act and shall be treated as confidential and subject to the provisions of subsection C of Section 600.6 of this title and Section 4-508 of this title.
C. Any PEO with a current employer tax account with the Oklahoma Employment Security Commission as of the effective date of this act shall comply with the provisions of this section no later than January 1, 2015.
D. Any PEO that does not have a current employer tax account with the Oklahoma Employment Security Commission as of the effective
date of this act shall comply with the provisions of this section upon becoming liable for contributions under the Employment Security Act of 1980.
E. After the initial election or assignment of the option provided for in subsection A of this section, a PEO shall be permitted to change its election one time only. The change of election shall be made by the PEO in writing. The election shall become effective in the calendar year following the date the Commission approves the election of the PEO. If the Commission approves a change of election, all contribution history, benefit experience history and payroll of each client shall be transferred to the pooled account, if the option in paragraph 1 of subsection A of this section is chosen, or the individual client accounts, if the option in paragraph 2 of subsection A of this section is chosen.
Added by Laws 2014, c. 221, § 2, eff. Nov. 1, 2014. Amended by Laws 2016, c. 287, § 11, eff. Nov. 1, 2016.