PEO Registration

Pursuant to KRS 336.236, every person desiring to provide professional employer services in Kentucky must be registered with the Department of Workers' Claims. Persons operating as a professional employer organization or employee leasing company on July 14,2022, must register before July 15, 2024, or they can no longer continue to provide professional employer services. Professional employer organizations not operating on July 14, 2022, must register before providing services in Kentucky.

Due to HB506, Professional Employer Organizations (also known as PEO's) and PEO Groups are required to be registered with the Department of Workers' Claims in order to do business in the state of Kentucky. The Department of Workers' Claims is responsible for regulating companies in the business of providing professional employer services, regardless of its use of term, or conducting business as a “staff leasing company”, “registered staff leasing company”, “employee leasing company”, “administrative employer”, or any other name. These services may include, but are not limited to: employee benefits, payroll, workers’ compensation, recruiting, risk/safety management, and training and development. A professional employer organization or professional employer organization group that fails to file its renewal application within 180 days of the last day of its fiscal year shall be required to apply as if it had never been registered unless it has sought and received an extension from the Department of Workers' Claims.

KRS Chapter 336

.230 Legislative declarations.external .232 Definitions for KRS 336.230 to 336.250.external .234 Limitations on professional employer agreementsexternal-- Covered employees deemed employees of clients for tax credits or economic incentives -- Use of professional employer organization services not to impact company status in business with state or political subdivisions..236 Registration of businesses providing professional employer servicesexternal-- Requirements -- Limited registration -- Electronic filing -- Confidentiality -- Administrative regulations..238 Registration and renewal fees.external .240 Requirement to maintain positive working capital or provide a bond, irrevocable letter of credit, or securities.external .242 Rights, duties, and responsibilities of client and professional employer organization in a co-employment relationshipexternal-- Professional employer agreement -- Notice -- Imposition of taxes..244 Registration ineligibility when workers' compensation insurance terminatedexternal-- Workers' compensation coverage requirement..246 Covered employeesexternal-- Retirement -- Welfare benefit plans -- Health benefit plans..248 Covered employeesexternal-- Unemployment compensation..250 Violationsexternal-- Penalties.

Please contact support at 502-564-2869 or LaborKYWCCompliance@ky.gov if you need assistance with the PEO system

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