Unemployment rules would change for staffing organizations

The Job and Family Services director would adopt rules for reporting quarterly wages and contributions for shared employees. The rules would cover professional employer organizations, professional employer organization reporting entities, and alternate employer organizations, including their shared or worksite employees. Each client employer's shared employees would generally be reported through a separate subaccount. A professional employer organization or reporting entity would need authorization from each client employer to act for that employer. The rules would allow required reporting and payment information to be sent in one combined filing.

A professional employer organization or reporting entity could elect to report a client's shared employees under its own account and experience rate. The election would cover shared employees of a client employer and would apply to professional employer organizations and professional employer organization reporting entities. The organization would have to notify the director of the election. After the election had been in place for at least two calendar years, the organization could change it by notifying the director. The director would recalculate the organization's experience rate to include the client employees covered by the election. For an election or election change under the regular rule, the recalculated rate would begin in the calendar year after the director receives notice.

A professional employer organization, reporting entity, or alternate employer organization could make a temporary election to use its own account and experience rate. The temporary election would cover shared or worksite employees reported by these organizations for a client employer. The organization would have to notify the Job and Family Services director. The director would recalculate the organization's rate to include experience tied to the client employer's covered employees. The notice would be due within 60 days after this section's effective date, and the recalculated rate would take effect when the director receives the notice.