Texas Peo License Requirements

13. How do I add or remove a controlling person to a “full” or “limited” PEO license? 19. I am currently licensed and now want to cease operations, what should I do? They will have to wait for you to get the license that was issued to them. 2. I already have a PEO, do I need to reapply for a PEO? 14. Do I need a PEO for each location or name? Looking for PEO certification requirements in a specific jurisdiction? The following table summarizes the licensing requirements for employment agencies in the United States. Click any status to view the license information specific to that state. In order for a PEO to operate in that state, a limited licensee must: There are no provisions in the law that allow for a temporary license. Georgia does not have a registration requirement for PEOs, but companies that act as PEOs must meet binding and reporting requirements.

PEOs applying for a new license or renewing their current license must provide audited financial statements that show positive working capital for that company. The statement must show the working capital of the business at a date not exceeding 15 months before the date on which the initial or renewal application was received by our department. A PEO license is required for each name under which you provide services. A licensee may not operate under more than one name unless it has obtained a separate licence for each name. The number of locations is not a factor. The limited license is an annual license and does not require background checks. Eligibility for a restricted license is limited to non-state companies that employ 50 or fewer employees in Texas. Yes, anyone who performs or offers PEO as defined by the Texas Labor Code, Chapter 91, must be licensed by the department. You may be eligible for a limited PEO license. See §72.22 License Requirements – Limited License.

No, the transfer or attempted transfer of a licence issued under this Chapter violates the Rules. See section 91.020 Grounds for disciplinary action. If you reside in New Hampshire: $100 deposit fee + $500 royalty If a new license is required for these licensees, then yes, the license(s) must be issued prior to sale, otherwise they will operate without a license. New controllers must be disclosed, but only AFTER the sale. In fact, they have 45 days after the end of the sale to inform us about the new controlling people. A professional employers` organization (PEO) is the new term for “personnel rental company” and is regulated by the department by Chapter 91 of the Texas Labor Code. The ministry issues licenses, regulates compliance with the law, and has the power to sanction a permit holder for proven violations. A PEO is defined as a business unit that provides professional services to the employer.

Professional services to the employer are services provided in the course of employment relationships where all or the majority of employees who provide services to a client or to a client`s service or work unit are insured employees. The new definition is similar to the definition of “temporary work”. The exceptions apply mainly to temporary agency workers, independent contractors, as well as a client and a PEO who own more than 33% of their co-ownership. The Department is the primary enforcement authority for complaints against PEOs. The most common complaints relate to unauthorized activities and non-payment of salaries to rented employees. The ministry investigates and resolves complaints, holds hearings and may impose administrative penalties for violations. Failure to receive a notice of licence renewal from the Ministry does not exempt a person from the requirements of this Chapter. 21. What are the licensee`s responsibilities and licensee`s records? We apply a fairly simple rule to the sale of PEOs and determine when a new license is needed: if the licensee`s federal identification number changes, a new license is required. The license number is linked to the federal identification number. 16. How long does it take to notify the ministry of changes to my original or renewal licence application? You may be subject to enforcement action, including administrative penalties and penalties for operating with an expired license (expired less than 18 months) or operating without a license (expired for 18 months or more).

If a person violates Chapter 91 of the Texas Labor Code, an administrative rule, executive director`s executive order, or commission proceeding may be initiated to impose administrative penalties, including license revocation, administrative penalties, or both, pursuant to the Texas Labor Code, chapter 91, the Texas Professional Code, Chapter 51 and all related rules. Deposit fee of $250 + $1,500 license fee if applied in the first year of the two-year licence term or $750 if claimed in the second year of the two-year licence term. TDLR processes applications, issues licenses, investigates complaints of violations of the law, and may take disciplinary action. The licensee must update the information provided to the Ministry within 45 days of any change in the information. Licenses for professional employers` organizations are required in 35 states. Companies must register with the Secretary of State before applying for a license. In addition to the application, companies often have to meet a commitment requirement, provide proof of workers` compensation insurance, and usually annual financial statements. A dedicated compliance professional can help you keep up with different jurisdiction requirements and updated laws. 1. What are the current financial requirements for Texas PEOs? No license is required if an organization provides payroll services only to one or more businesses that are not considered PEOs.

A company that offers a PEO must be licensed if the company`s employees are deployed for the company`s client companies and the employment tasks are effectively shared by the company and its client companies. See Labour Code, Article 91.001 (14). No. However, if you opt for workers` compensation after the permit is issued, submit a copy of the certificate of insurance to the ministry. Limited licenses are still required to meet 91,014. Net asset requirements/working capital requirements. Registration requirements have been suspended until 2023. 3. Have financial qualifications changed to maintain and maintain a PEO? The full license is an annual license that requires a full background check by the Federal Bureau of Investigations and the Texas Department of Public Safety.

Send a check or money order for $25 and a written request for each duplicate license to: You must send the request in writing to the Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711 with a fee of $25.00 for each amended license; OR, you can now change your contact information online at www.tdlr.texas.gov/ContactInfoUpdate/LicenseProgram.aspx. Yes, you must be licensed if you have assigned employees to Texas. 7. Can I start my business after submitting an application to the department, or do I have to wait for my Texas operating license? If you do not have enough operating history to have audited financial statements based on at least 12 months of operation, you can meet working capital requirements by providing us with financial statements that have been audited (not audited) by an auditor (CPA). Please attach a CPA cover letter to the annual financial statements. Application fee of $200 + $1,000 royalty if applied in the second half of the licence term and $2,000 if applied in the first half of licence term 18. . .