(A)This rule shall be effective beginning
January 1, 2014.
(B)(A) For the purposes of division (K) of section
4141.24 of the Revised Code and for purposes of this rule, the following
definitions shall apply:
(1)"Client
employer" means any employer as defined by section
4141.01 under Chapter 4141. of the Revised
Code that enters into a professional employer organization agreement and is
assigned shared employees by the professional employer organization.
(2)"Coemploy"
means the sharing of the responsibilities and liabilities of being an employer,
including liabilities incurred under Chapter 4141. of the Revised Code.
(3)"Professional
employer organization" means a sole proprietor, partnership, association,
limited liability company, or corporation that enters into an agreement with
one or more client employers for the purpose of coemploying all or part of the
client employer's workforce at the client employer's work site. This definition
shall also include any entity that is otherwise known as an employee leasing
company.
(4)"Professional
employer organization agreement" means a written contract to coemploy
employees between a professional employer organization and a client employer.
(5)"Professional
employer organization reporting entity" means two or more professional
employer organizations that are majority owned or commonly controlled by the
same entity, parent, or controlling person and that satisfy reporting entity
control rules as defined by the financial accounting standards board and
generally accepted accounting principles.
(6)"Shared
employee" means an individual intended to be assigned to a client employer
on a permanent basis, not as a temporary supplement to the client employer's
workforce, who is coemployed by a professional employer organization or
professional employer organization reporting entity and a client employer
pursuant to a professional employer organization agreement.
(7)"Subaccount"
means the client employer account as that term is
applied in division (A)(1) of section 4141.24 of the Revised Code.that shall be maintained as a separate account for each
employer pursuant to division (A)(1) of section 4141.24 of the Revised Code.
(C)(B) For the purposes of section 4141.01 and
division (K) of section 4141.24 of the Revised Code, shared employees of the
client employer are considered employees of the professional employer
organization or the professional employer organization reporting entity
pursuant to a professional employer organization agreement.
(D)(C) The contribution rate previously established
for the client employer shall continue to apply for the calendar year in which
the agreement is effective and shall be determined annually based solely on the
experience of the individual client employer's account.
(E)(D) All employee wage data and quarterly
contributions required by sections 4141.20 and 4141.23 of the Revised Code
shall be reported and paid using the unemployment compensation employer account
number and contribution rate established for the client employer, also known as
the subaccount.
(1)A professional
employer organization or professional employer organization reporting entity
may transmit quarterly employer wage data and payments required under sections
4141.20 and 4141.23 of the Revised Code in a single electronic file.
(2)Pursuant to
division (A) of section 4125.03 and division (K)(1) of section 4141.24 of the
Revised Code, a professional employer organization or professional employer
organization reporting entity shall ensure that quarterly employee wage data
and contributions or payments in lieu of contributions are filed and paid as
required by Chapter 4141. of the Revised Code.
(F)(E) For the purposes of Chapter 4141. of the
Revised Code, an individual whose services performed for the client employer
are excluded from employment pursuant to division (B)(3) or (B)(4) of section 4141.01
of the Revised Code cannot be considered a shared employee.
(G)(F) Upon termination of the professional employer
organization agreement, the professional employer organization or the
professional employer organization reporting entity shall inform the department
of the end of the agreement.
Effective: 1/28/2019
Five Year Review (FYR) Dates: 11/7/2018 and 01/28/2024
Certification: CERTIFIED
ELECTRONICALLY
Date: 01/14/2019
Promulgated Under: 119.03
Statutory Authority: 4141.13, 4141.14, 4141.24(K)
Rule Amplifies: 4141.
Prior Effective Dates: 01/01/2014