New legislation PEOs need to know about
Legislation that will be effective Sept. 1, 2013, affects PEOs providing workers' compensation coverage to their clients:
- PEO clients can provide their own coverage. In the past, the PEO was the insurer of record. With the new legislation, a PEO client can, in accordance with the contract with the PEO, retain its own workers' compensation policy.
2. Executive officers can limit their payroll. The legislation allows executive officers of a client company insured under a PEO's policy to limit their payroll and be classified as Code 8809.