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New legislation PEOs need to know about

New legislation PEOs need to know about

Legislation that will be effective Sept. 1, 2013, affects PEOs providing workers' compensation coverage to their clients:

  1. 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.

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