Title 787 | Chapter 001 | Regulation 370REG
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EDUCATION AND LABOR CABINET
Office of Unemployment Insurance
(Amended at ARRS Committee)
787 KAR 1:370.Professional Employer Organizations.
Section 1.
Definitions(1)
(2)
(3)
Section 2.
Professional Employer Organization reporting requirements(1)
A professional employer organization ((a)
Assigned tax rate of the PEO, per KRS 336.248 (1)(a); or(b)
Assigned tax rate of the client(2)
(a)
For each PEO having one (1) or more covered employees with a client in this state, the(b)
To apply for an account number,1.
The federal identification number of the professional employer organization, along with the name, address, and phone number of the professional employer organization;2.
The name, physical address, and phone number of each client in a format as prescribed by the Office of Unemployment Insurance;3.
The name of the client's owner, partners, corporate officers, limited liability company members, and managers, if board managed, or general partners;4.
The federal identification number of the client;5.
A brief description of the client's major business activity; and6.
Any other information(c)(b)
The PEO shall notify the Office of Unemployment Insurance (OUI) in writing of any additions or deletions of clients during the quarter in which a change occurs(d)(c)
In cases where the PEO has not been subject to the provisions set forth in KRS 336.248, the professional employer organization shall be assigned the new employer premium rate based upon the reserve ratio of the PEO's industrial classification.Section 3.
Effect of successorship. A PEO shall not be considered a successor employer to any client and shall not acquire the experience history of any client with whom there is not any common ownership, management or control. The client, upon terminating its relationship with the PEO, shall not be considered a successor employer to the PEO and shall not acquire any portion of the experience history of the aggregate reserve account of the PEO with whom there is not any common ownership, management, or control. For purposes of this regulation, the existence of a professional employer agreement, without other evidence of common control, shall not constitute common ownership, management, or control.Section 4.
Change of contribution election. KRS 336.248(5) permits a PEO to change its contribution election under KRS 336.248 (1)(a) or KRS 336.248(1)(b) only once. The change of contribution election shall be submitted in writing via the methods listed at https://kewes.ky.gov.FILED WITH LRC: January 13, 2025
CONTACT PERSON: Charles Wheatley, Deputy General Counsel, Education and Labor Cabinet, 500 Mero St., 3rd Floor, Frankfort, Kentucky, 502-782-0555, email Charles.wheatley@ky.gov.
EDUCATION AND LABOR CABINET
Office of Unemployment Insurance
(Amended at ARRS Committee)
787 KAR 1:370.Professional Employer Organizations.
Section 1.
Definitions(1)
"Client" is defined by KRS 336.232(1).(2)
"Covered employee" is defined by KRS 336.232(4).(3)
"Professional employer organization" or "PEO" is defined by KRS 336.232(8).Section 2.
Professional Employer Organization reporting requirements(1)
A professional employer organization ("PEO") shall keep separate records and submit separate state unemployment insurance wage and premium reports to the Office of Unemployment Insurance (OUI) using the Unemployment Insurance Self-Service Web Portal located at https://kewes.ky.gov, with payments to report the covered employees of each client by using the client's state employer account number as provided for in subsection (2) and using the:(a)
Assigned tax rate of the PEO, per KRS 336.248 (1)(a); or(b)
Assigned tax rate of the client, per KRS 336.248(1)(b).(2)
(a)
For each PEO having one (1) or more covered employees with a client in this state, the PEO shall file an electronic application titled, UI-1P, "Professional Employer Organization Application for Unemployment Insurance Employer Reserve Account", incorporated in 787 KAR 1:010, using the Unemployment Insurance Self-Service Web Portal located at https://kewes.ky.gov.(b)
To apply for an account number, the application shall include:1.
The federal identification number of the professional employer organization, along with the name, address, and phone number of the professional employer organization;2.
The name, physical address, and phone number of each client in a format as prescribed by the Office of Unemployment Insurance;3.
The name of the client's owner, partners, corporate officers, limited liability company members, and managers, if board managed, or general partners;4.
The federal identification number of the client;5.
A brief description of the client's major business activity; and6.
Any other information required by the Office of Unemployment Insurance.(c)
The PEO shall notify the Office of Unemployment Insurance (OUI) in writing of any additions or deletions of clients during the quarter in which a change occurs. Written notifications shall be submitted to the OUI via the methods listed at https://kewes.ky.gov.(d)
In cases where the PEO has not been subject to the provisions set forth in KRS 336.248, the professional employer organization shall be assigned the new employer premium rate based upon the reserve ratio of the PEO's industrial classification.Section 3.
Effect of successorship. A PEO shall not be considered a successor employer to any client and shall not acquire the experience history of any client with whom there is not any common ownership, management or control. The client, upon terminating its relationship with the PEO, shall not be considered a successor employer to the PEO and shall not acquire any portion of the experience history of the aggregate reserve account of the PEO with whom there is not any common ownership, management, or control. For purposes of this regulation, the existence of a professional employer agreement, without other evidence of common control, shall not constitute common ownership, management, or control.Section 4.
Change of contribution election. KRS 336.248(5) permits a PEO to change its contribution election under KRS 336.248 (1)(a) or KRS 336.248(1)(b) only once. The change of contribution election shall be submitted in writing via the methods listed at https://kewes.ky.gov.FILED WITH LRC: January 13, 2025
CONTACT PERSON: Charles Wheatley, Deputy General Counsel, Education and Labor Cabinet, 500 Mero St., 3rd Floor, Frankfort, Kentucky, 502-782-0555, email Charles.wheatley@ky.gov.