The bill amends section 4141.24 of the Revised Code to improve the management of professional employer organizations (PEOs) and alternate employer organizations (AEOs) under the Unemployment Compensation Law. Key updates include new provisions for managing employer accounts, particularly concerning the transfer of excess negative balances to a mutualized account. Employers must demonstrate a positive balance for two consecutive computation dates to qualify for additional transfers. The bill also clarifies how employer accounts are charged for benefits paid to claimants, introduces a suspense account for benefits pending final determination, and sets conditions for account termination after five years of inactivity, while allowing accounts to remain open for owners called to military service.

Additionally, the bill revises the reporting and contribution rates for PEOs and AEOs, establishing new rules for quarterly wage reporting for shared employees and recognizing PEOs as the employer of record. It allows for the creation of unique subaccounts for each client employer's shared employees to aid in determining experience rates. The bill includes the deletion of previous language that limited the recognition of PEOs and inserts new provisions to clarify the reporting process and establish common contribution rates among multiple employers. Overall, these amendments aim to streamline the legal framework governing PEOs and AEOs, enhance reporting efficiency, and ensure compliance with federal requirements.

Statutes affected:
As Introduced: 4141.24
As Reported By Senate Committee: 4141.24
As Passed By Senate: 4141.24
As Reported By House Committee: 4141.24
As Passed By House: 4141.24
As Enrolled: 4141.24