SB 368 Summary

• Amends Oklahoma law to define Professional Employer Organizations (PEOs) and establish that PEOs and their clients are coemployers of covered employees under the Employment Security Act of 1980.

• PEOs failing to register under the Oklahoma Professional Employer Organization Recognition and Registration Act shall be treated as third-party administrators and must obtain power of attorney to access client account information.

• PEOs must file quarterly tax returns and pay unemployment contributions under one of two options: either under one pooled PEO account for all clients, or under individual client accounts with the Oklahoma Employment Security Commission determining separate contribution rates.

• PEOs must file a client list with the Oklahoma Employment Security Commission within 30 days after each calendar quarter, including federal employer identification numbers, names, contact information, and current registration certificates.

• PEOs are liable for payment of contributions, penalties, and interest on wages paid to covered employees during the professional employer agreement period, with an effective date of November 1, 2015.