Bill > SB263

This bill amends the Unemployment Compensation Law to clarify how professional employer organizations (PEOs) and alternate employer organizations (AEOs) are treated for unemployment tax purposes. PEOs are companies that provide human resources services, including payroll and benefits, to other businesses, known as client employers, and are considered the employer of record for their shared employees. AEOs are similar entities. The bill allows these organizations to elect to report wages and contributions for their shared or worksite employees under their own account and experience rate, rather than the client employer's. This election requires notifying the Director of Job and Family Services within a specific timeframe after the bill becomes law, and the Director will then recalculate the organization's experience rate to include the employees' history. The bill also makes changes to how these organizations report quarterly wages and contributions, requiring that shared employees of a single client employer be reported under a separate, unique subaccount to reflect that client's specific unemployment experience, unless the PEO or AEO elects to combine this experience with their own.

Business and Industry

https://www.legislature.ohio.gov/legislation/136/sb263