§ 27-16-7-2 — Professional employer agreement contents

Indiana § 27-16-7-2

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 16: PROFESSIONAL EMPLOYER ORGANIZATIONS
• Ch. 7: General Requirements and Provisions

Text

(a) Except as provided in this article, the
co-employment relationship between a client and a PEO, and between
a co-employer and a covered employee, is governed by the professional
employer agreement.
(b) A professional employer agreement must specify the following:
(1) The allocation of rights, duties, and responsibilities described
in section 1 of this chapter.
(2) Except as provided in subsection (c), that the PEO is
responsible for:
(A) payment of wages to covered employees;
(B) withholding, collection, reporting, and remittance of payroll
related and unemployment taxes; and
(C) to the extent the PEO has assumed responsibility in the
professional employer agreement, making payments for
employee benefits for covered employees.
(3) The allocation, to either the client or the PEO, of the
responsibility to obtain worker's compensation coverage for
covered employees from a worker's compensation insurer that is
authorized under this title to conduct the business of insurance in
Indiana.
(4) If the professional employer agreement allocates the
responsibility under subdivision (3) to the PEO, a requirement
that the PEO maintain and provide to the client, at the client's
request at the termination of the professional employer agreement,
records regarding loss experience related to the worker's
compensation insurance coverage.
(c) A PEO is not responsible for an obligation between a client and
a covered employee for payments in addition to the covered employee's
salary, draw, or regular rate of pay, including bonuses, commissions,
severance pay, deferred compensation, profit sharing, or vacation, sick,
or other paid time off, unless the PEO has expressly agreed to assume
liability for the payments in the professional employer agreement.

Legislative History

As added by P.L.245-2005, SEC.7.