BULLETIN NO. 9-2023
|To:||Oklahoma Professional Employer Organizations (PEOs)|
|Re:||2023 PEO Legislative Changes|
|From:||Glen Mulready, Insurance Commissioner|
|Date:||August 15, 2023|
The Regulated Industry Services (RIS) Division of the Oklahoma Insurance Department (OID) oversees the registration and regulation of Professional Employer Organizations (PEOs). We will begin sending out informational emails to the industry to increase awareness and encourage open dialogue so you can remain compliant.
Legislative Changes (SB 638) effective November 1, 2023
Disclaimer: The following is an overview of the law changes pertaining to PEO registrations. Refer to the Oklahoma Supreme Court Network (OSCN) webpage to research all the statutes pertaining to Oklahoma Professional Employer Organization Recognition and Registration Act, 40 O.S. §§ 600.1 – 600.9 (the new statute version is posted on the OSCN webpage).
40 O.S. § 600.4(B)(1)(g).
Financial Statement prepared within 365 (was 180 days) of application – a financial statement setting forth the financial condition of the PEO or PEO Group, as of a date not earlier than three hundred sixty-five (365) days prior to the date submitted to the Commissioner, prepared in accordance with generally accepted accounting principles, and audited or reviewed by an independent certified public accountant licensed to practice in the jurisdiction in which such accountant is located. A PEO Group may submit combined or consolidated audited or reviewed financial statements to meet the requirements of this section.
40 O.S. § 600.4(B)(4).
Name or contact change – Each person, PEO, or PEO Group shall electronically submit, in a form and manner prescribed by the Commissioner, along with any applicable fees, any change of legal business name, “doing business as” or assumed name, address, or contact email address within thirty (30) days after the change occurred. Any submission of a change of legal name, “doing business as” or assumed name, address, or contact email address received more than thirty (30) days after the change occurred shall be accompanied by a fee of Fifty Dollars ($50.00).
40 O.S. § 600.4(C)(2).
Reinstatement – A registration expired for failure to submit a renewal application may be reinstated within ninety (90) days after the expiration date by electronically submitting a fee in an amount that is twice the amount of the renewal fee and a renewal application in the form and manner prescribed by the Insurance Commissioner, along with any transaction or other applicable fees. The Commissioner shall require a person, PEO, or PEO Group whose registration has been expired for more than ninety (90) days to reapply as if a new applicant and pay an application fee equal to an amount that is twice the initial application fee in addition to any fines imposed. All applications received after the registration has been expired for more than ninety (90) days shall include a detailed report of professional employer services provided in this state during the period of expired registration.
40 O.S. § 600.4(J).
Days to respond – Every person, PEO, or PEO Group, upon receipt of any inquiry from the Commissioner, shall, within twenty (20) days from the date of receipt of the inquiry, furnish the Commissioner with an adequate response to the inquiry.
40 O.S. § 600.4(B)(2)(c). This statute remains unchanged. Effective November 1, 2023, we will start enforcing the requirement as written in the statute. CPA Statements certifying payment of only “state taxes” will be rejected.
Quarterly CPA Statement – an independent Certified Public Accountant must certify that, as of the end of the most recent calendar quarter, the PEO or PEO Group has paid all of its state and federal payroll taxes, health and workers’ compensation premiums, and contributions to employee retirement plans in a timely and appropriate manner.
Questions concerning this bulletin should be directed to the Oklahoma Insurance Department’s Regulated Industry Services Division at 405-522-8398 or by email to email@example.com.