§ 27-16-6-1 — Financial requirements

Indiana § 27-16-6-1

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 16: PROFESSIONAL EMPLOYER ORGANIZATIONS
• Ch. 6: Financial Requirements

Text

(a) A PEO or PEO group shall do one (1) of the
following:
(1) Maintain positive working capital, as reflected in the financial
statement submitted to the department by the PEO or PEO group
under IC 27-16-4.
(2) If the PEO or PEO group does not meet the requirement of
subdivision (1), maintain any of the following with a minimum
aggregate value in an amount that is at least sufficient to eliminate
the PEO's or PEO group's negative working capital plus one
hundred thousand dollars ($100,000):
(A) A surety bond.
(B) An irrevocable letter of credit.
(C) Cash.
(D) A combination of items listed in clauses (A) through (C).
(b) An instrument or cash described in subsection (a)(2) must be
held by an institution designated by the department, securing payment
by the PEO or PEO group of all taxes, wages, benefits, or other
entitlement due to or with respect to covered employees in the event
that the PEO or PEO group does not make the payments when due.

Legislative History

As added by P.L.245-2005, SEC.7. Amended by P.L.11-2011, SEC.44.