Disclaimer: The following is an overview of the laws pertaining to this registration type.  Refer to the OSCN webpage to research all the statues pertaining to this registration.

Regulations 40 O.S.§ 600.1 – 600.9.

Statutes

Professional employer organizations provide a valuable service to commerce and the citizens of this state by increasing the opportunities of employers to develop cost-effective methods of satisfying their personnel requirements and providing employees with access to certain employment benefits which might otherwise not be available to them.

Definitions 40 O.S. § 600.2.

Coemployer means either a PEO or a client.

Covered Employee means an individual having a coemployment relationship with a PEO and a client who have entered into a professional employer agreement with respect to such person, and shall include the client’s officers, directors, shareholders, partners, and managers to the extent such persons act as operational managers or perform services for the client.

Professional employer agreement means a written contract by and between a client and a PEO under which the PEO and the client agree to establish a coemployment relationship.

Professional Employer Organization (PEO) means any person engaged in the business of providing professional employer services. A person engaged in the business of providing professional employer services regardless of its use of the term “professional employer organization”, “PEO”, “staff leasing company”, “registered staff leasing company”, “employee leasing company”, or any other name.

Professional employer services mean the service of entering coemployment relationships in which, except in isolated instances, all or a majority of the employees providing services to a client or to a division or work unit of client are covered employees.

Group registration 40 O.S. § 600.4(E). – any two or more PEOs held under common control of any other person or persons acting in concert may be registered as a PEO Group. A PEO Group may satisfy any reporting and financial requirements of this registration law on a consolidated basis.

*Effective 11/01/2023

Registration Fees:

Cycle – annual

Fees

PEO full and PEO Group

Initial registration $500
Timely renewal registration $250

PEO Exempt

Initial registration $250
Timely renewal registration $250

*90 Day 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.

*Expired more than 90 days – all applications received after the license has expired for more than ninety (90) days shall include a detailed report of administrator services provided in this state during the period of expired licensure.  Complete the Activity Attestation form from the expiration date through the date a complete, executed, initial application is submitted via OPTins.

*Name or contact change 40 O.S. § 600.4(B)(4).

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).  The fee must be paid online by clicking on Pay a Violation.

Registration Application Requirements 40 O.S. § 600.4.

Initial and/or Renewal Applications

• Current registration number (renewals)
• Primary contact person
• Legal name of PEO plus any DBAs or trade names of all associated PEO entities. Legal names are required to be registered with the Oklahoma SOS
• Address of each principal place of business and address of each office located in Oklahoma
• PEO’s taxpayer or federal employer identification number
• A list by jurisdiction (states) for each entity name under which the PEO or PEO Group has operated in the preceding five (5) years, including any alternative names, names of predecessors and, if known, successor business entities
• Statement of ownership – list any individual that owns/controls 25% or more of the equity interest of the PEO. A biographical affidavit is required to be on record with the OID for each person. The OID may request an updated bio if deemed necessary
• Statement of management – which shall include the name and evidence of the business experience of any person who serves as president, chief executive officer, or otherwise has the authority to act as senior executive officer of the PEO or PEO Group. A biographical affidavit is required to be on record with the OID for each person.  The OID may request an updated bio if deemed necessary.
• Workers Compensation form or Certificate of Insurance stating coverage in Oklahoma for each PEO entity. The online Workers Compensation Verification System may be used by the OID to confirm coverage (link https://www.ewccv.com/cvs/ )
• Annual Financial statement setting forth the financial condition dated within 180 days (*changes to 365 days on 11/1/2023) 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.
  • Net Worth and Bonding Requirement
    • A minimum net worth of $50,000.00 as reflected in the annual financial statement; or
    • A bond or securities with a minimum market value of $50,000.00 held by a depository designated by the Commissioner, securing payment by the PEO of all taxes, wages, benefits, or other entitlement due to or with respect to a covered employee, if the PEO does not make such payments when due. Any bond or securities deposited under this requirement shall not be included for the purpose of calculation of the minimum net worth required by this section.
  • Quarterly financial statements of management for each calendar quarter as of the most recent audit that demonstrate continuing financial operations acceptable to the Commissioner, and the certification of an independent CPA that as of the end of the most recent calendar quarter, the PEO has timely paid all state/federal payroll taxes, health and workers compensation premiums, and contributions to employee retirement plans. Statement is required within 90 days after the end of the quarter.

Exempt PEO 40 O.S. § 600.4(F).

A PEO is exempt from the registration requirements under the Oklahoma Professional Employer Organization Recognition and Registration Act if such PEO:

• Initial and/or Renewal Applications
  • Submits the PEO Exempt initial/renewal application via OPtins.
  • PEO is domiciled outside this state and is licensed or registered as a professional employer organization in another state that has the same or greater requirements as the Oklahoma Professional Employer Organization Recognition and Registration Act. PEO must submit a copy of the designated state’s PEO regulations for review by the OID.  Submit via OPTins as a PDF file or provide a webpage link.
  • Entity does not maintain an office in this state or solicit in any manner clients located or domiciled within this state
  • Entity does not have more than twenty-five covered employees employed or domiciled in this state.
  • List all legal names plus any DBAs or trade names of all associated PEO entities. Legal names are required to be registered with the Oklahoma SOS.

Registration Application Requirements:

• Initial and/or Renewal Applications
  • Current registration # (renewal)
  • Primary contact person
  • Legal name of PEO plus any DBAs or trade names of all associated PEO entities. Legal names are required to be registered with the Oklahoma SOS
  • Address of each principal place of business and address of each office located in Oklahoma
  • PEO’s taxpayer or federal employer identification number
  • A list by jurisdiction (states) for each entity name under which the PEO or PEO Group has operated in the preceding five (5) years, including any alternative names, names of predecessors and, if known, successor business entities
  • Statement of ownership – list any individual that owns/controls 25% or more of the equity interest of the PEO. A biographical affidavit is required to be on record with the OID for each person. The OID may request an updated bio if deemed necessary.
  • Statement of management – which shall include the name and evidence of the business experience of any person who serves as president, chief executive officer, or otherwise has the authority to act as senior executive officer of the PEO or PEO Group. A biographical affidavit is required to be on record with the OID for each person.  The OID may request an updated bio if deemed necessary.
  • Workers Compensation form or Certificate of Insurance stating coverage in Oklahoma for each PEO entity. The online Workers Compensation Verification System may be used by the OID to confirm coverage (link https://www.ewccv.com/cvs/ )
  • Quarterly financial statements of management for each calendar quarter as of the most recent audit that demonstrate continuing financial operations acceptable to the Commissioner, and the certification of an independent CPA that as of the end of the most recent calendar quarter, the PEO has timely paid all state/federal payroll taxes, health and workers compensation premiums, and contributions to employee retirement plans. Statement is required within 90 days after the end of the quarter.

Rejection reasons 40 O.S. § 600.4(K).

Initial or renewal applications may be rejected for the following reasons:

1. The application is not fully completed or properly executed
2. Documents required to supplement the application are not included in the application packet or are inadequate
3. The registration fee is not submitted with the application
4. The applicant or any person named in the application misrepresents material in the application
5. The applicant, or any of its officers, is determined by the Commissioner to lack good moral character, business integrity, or financial responsibility; or
6. The controlling person has violated a provision of the Oklahoma Professional Employer Organization Recognition and Registration Act.

The RIS Division will contact the applicant via email to request any missing information.  No response to our request within 30 days may result in the application being denied without further notice and registration may expire naturally.

*Days to respond 40 O.S. § 600.4(J).

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.

Professional Employer Organization Forms

PEO Bond Form
Biographical Affidavit Template
Letter of Compliance Template-Full PEO
Letter of Compliance Template-Group PEO
Workers Compensation Questionnaire
License Surrender Form