(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 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 that shall be maintained as a separate
account for each employer pursuant to division (A)(1) of section 4141.24 of the
Revised Code.
(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.
(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.
(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.
(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.
(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.
Five Year Review (FYR) Dates: 2/22/2024 and 02/22/2029
Certification: CERTIFIED ELECTRONICALLY
Date: 02/22/2024
Promulgated Under: 119.03
Statutory Authority: 4141.13, 4141.14, 4141.24(K)
Rule Amplifies: 4141.
Prior Effective Dates: 01/01/2014, 01/28/2019