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State of Texas upgrades PEO legislation

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Article Title: State of Texas upgrades PEO legislation - Source: State of Texas - 5/29/2009

The State of Texas has modified the Texas PEO statutes to include new definitions for PEO working capital requirements as well as ensure PEO clients are defined as the eligible parties for other employer based tax credits. PEOs renewing their licenses and seeking new licenses to operate in Texas will need to be compliant with the provision effective December 31, 2011. - C.S.H.B. 2249 strengthens financial standards for staff leasing services companies, establishes a superior standard for determining a staff leasing services company's liquidity, creates maximum efficiencies at TDLR for the staff leasing services company licensing process, and allows a staff leasing services company to use an approved assurance organization to act on its behalf in complying with licensing requirements. The bill clarifies that nothing in a staff leasing services arrangement affects the ability of a client company to qualify for tax credits or other economic incentives. The bill requires a staff leasing services company to provide employment information required for the administration of any tax credit, grant, or economic incentive that is based on employment.