§1763. Rights and responsibilities
A. For purposes of this Chapter, as long as the professional employer services
agreement between the PEO and the client remains in force, a PEO shall be deemed an
employer of the covered employees to the extent and for the purposes enumerated in the
professional employer services agreement. However, the PEO shall have the following
employer rights and responsibilities with regard to such covered employees in any case:
(1)It shall pay the wages of covered employees from its own accounts.
(2)It shall have the responsibility for the withholding and remittance of payroll-related taxes of the covered employees from its own accounts.
(3)It shall pay federal unemployment taxes as required by federal unemployment
laws.
(4)It shall have the right to sponsor an
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§1763. Rights and responsibilities
A. For purposes of this Chapter, as long as the professional employer services
agreement between the PEO and the client remains in force, a PEO shall be deemed an
employer of the covered employees to the extent and for the purposes enumerated in the
professional employer services agreement. However, the PEO shall have the following
employer rights and responsibilities with regard to such covered employees in any case:
(1) It shall pay the wages of covered employees from its own accounts.
(2) It shall have the responsibility for the withholding and remittance of payroll-related taxes of the covered employees from its own accounts.
(3) It shall pay federal unemployment taxes as required by federal unemployment
laws.
(4) It shall have the right to sponsor and maintain fully insured employee benefit and
welfare plans for covered employees. Nothing in this Part shall prevent a client from
including covered employees in a client benefit program or plan or shall prevent covered
employees from participating in such a program or plan.
B.(1) A PEO shall be liable for state unemployment taxes for wages paid by the PEO
to covered employees but only for the duration of the PEO services agreement applicable to
such employees. The PEO shall collect federal and state unemployment taxes. The PEO
shall remit all collected federal unemployment taxes to the United States Department of
Treasury, Internal Revenue Service and shall remit all collected state unemployment taxes
to Louisiana Works. A PEO shall be required to provide a client with an invoice detailing
the services provided which shall include an itemization of the actual federal and state
unemployment taxes owed and paid on behalf of the covered employees, as well as any
amount the PEO charges for such service.
(2) A PEO shall keep separate records and submit separate quarterly contribution and
wage reports for each of its client entities using the client's account number and
unemployment contribution rate.
(3) The PEO and the client shall be jointly and severally liable for any unpaid
contributions, interest, and penalties due for Louisiana unemployment taxes attributable to
wages for services performed for the client by covered employees.
(4) A PEO client shall be released from joint and several liability under Paragraph
(3) of this Subsection and the client shall be released from the separate reporting and
contribution rate requirements imposed under Paragraph (2) of this Subsection upon the
posting and continued maintenance by the PEO of a surety bond issued by a corporate surety
authorized to do business in the state in the amount of one hundred thousand dollars to
ensure prompt payment of contributions, interest, and penalties for which the PEO is or may
become liable. After three years the bond shall be adjusted in accordance with rules
promulgated by Louisiana Works.
(5) The PEO shall designate and identify each client and covered employees thereof
for each calendar quarter with the filing of quarterly wage reports with Louisiana Works.
(6)(a) No transfer of experience rating will be approved between any client and the
PEO unless it is determined by the administrator that an acquisition of assets has occurred.
Co-employment of a client's employees without an acquisition of the business and its other
assets will not of itself constitute an acquisition for purposes of the transfer of experience
rating.
(b) However, the experience rating will transfer between one PEO to another when
it is determined by the administrator that an acquisition of assets has occurred, even if such
acquisition is only of a clearly segregable and identifiable or a substantial portion of the first
PEO's labor force.
(7) If a professional employer services agreement is terminated and, within thirty
days, the client engages the services of another PEO, both the terminated or terminating PEO
and the new PEO will notify the unemployment insurance tax section of Louisiana Works
directly within thirty days, and no other action need be taken.
(8) If a professional employer service agreement is terminated and the client resumes
sole employment of previously covered employees, any inactive unemployment insurance
account previously held by the client will be reopened under its previously existing
experience rating. No transfer of experience rating shall be made from the PEO. If there is
no previous account number or the account lies dormant for seven years, a new account will
be established in accordance with law. If there is no existing experience rating, one will be
established pursuant to state law for new businesses.