April 10, 2013
Professional Employer Organizations and Professional Employer Organization Reporting Entities
Recently enacted legislation (Substitute Senate Bill 139, 129th General Assembly, effective 3/22/13), added a new filing requirement for Professional Employer Organizations (PEO) and Professional Employer Organization Reporting Entities (PEORE). Statutory reference: Ohio Revised Code 5747.07 (A) (4) and 5747.07 (J).
These organizations are required to provide the tax commissioner with a report that contains information identifying the PEO’s or PEORE’s client employers. Each PEO or PEORE operating in Ohio is required to file an initial report within 30 days after commencing business in Ohio or within 30 days after the effective date of the law, whichever is later. The following information is required on the PEO’s or PEORE’s initial report:
- The name, address, charter number (if applicable) and federal employer identification number of each client employer;
- The date that each client employer became a client;
- The names and mailing addresses of the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) of each client employer.
After submitting the initial report, the PEO or PEORE is required to file quarterly reports for each subsequent calendar quarter. These reports are due by the last day of the month following the end of each calendar quarter. The following information is required on the quarterly reports:
- If an entity became a client employer at any time during the calendar quarter, all of the information required under items (1), (2) and (3) above.
- If an entity terminated their agreement with the PEO or PEORE at any time during the calendar quarter, the information described in (1) above for that entity, and either i) the date that the client employer ceased being a client or ii) the date that the client employer ceased business operations in Ohio.
- If the name or mailing address of the CEO or CFO of a client employer has changed since the filing of the last report, the updated name or mailing address, or both, of the CEO or CFO as applicable.
- If none of the events described above occurred during the calendar quarter, a statement of that fact.
Information regarding the new filing requirement and instructions for filing the initial and subsequent quarterly reports can be found on the Ohio Department of Taxation website at the following web page address: http://www.tax.ohio.gov/business/peoreporting.aspx
If you have any questions regarding the new filing requirement, please contact the Employer Withholding Unit at 1-888-405-4089 or send us an e-mail. To send an e-mail: go to www.tax.ohio.gov and under the header ‘Contact,’ choose ‘Email Contacts.’ Fill out the information on the form and when you are done, click on submit to send your question to us.