MI SB1107

Professional employer organizations (PEOs) must file a report with the agency and register as liable employers to report wages and pay unemployment contributions for their client employers.

PEOs must file a single quarterly wage report and unemployment contribution report using electronic methods, and notify the agency within 30 days when employers become or cease to be clients.

Client employers with no reported employees or payroll for 8 or more calendar quarters (or 12 or more quarters beginning January 1, 2014) receive the new employer tax rate; those with shorter tenure or recently terminated accounts receive separate registration and the new employer rate.

Business entities becoming PEO clients on or after January 1, 2014 retain their existing unemployment tax rate or establish a new rate under section 19.

PEOs operating in Michigan before January 1, 2011 may use the new reporting method before January 1, 2014, but must use it on and after that date.