Bill > SB0425

This bill amends the Community College Act of 1966 to clarify how professional employer organizations (PEOs) are treated in new jobs training programs. Specifically, the bill expands the definition of a "new job" to include full-time jobs where income taxes are withheld by a PEO on behalf of an employer. A PEO is a company that provides comprehensive HR services, including payroll processing, to businesses. The bill adds a new definition for "professional employer organization" and modifies existing provisions to ensure that when a PEO handles payroll for an employer participating in a new jobs training program, the jobs and associated tax withholdings are still counted as part of that employer's agreement with a community college district. The legislation requires PEOs to report withholdings in the same manner as employers and maintains the existing requirements for community college districts to track and report details about new job training programs, such as the number of degrees awarded, program participants, and individuals hired into new jobs. The bill is tied to another piece of legislation (Senate Bill 426) and will only take effect if that companion bill is also enacted.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0425