MI SB1019

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

PEOs that are liable employers must file a single quarterly wage and contribution report for all client employers based on each client's account information, with client employers converting from reimbursing to contributing status.

Client employers of PEOs that reported no payroll or zero dollars for the 8 calendar quarters ending December 31, 2013 shall receive the new employer tax rate for 2014, with prior rates not resumed.

PEOs must notify the agency within 30 days when employers become clients and within 30 days when clients discontinue association; leased employees report under the client entity's account number while retained employees report under a subaccount number.

The amendment is curative and retroactively applied to clarify the original legislative intent regarding unemployment tax rate calculations for PEO client employers in 2014.