Did You Know?
Aware "one-click" audit helps with PEO regulations — On March 13, 2006, Alabama joined the more than 30 states that require the registration and regulation of professional employer organizations (PEOs). With Governor Bob Riley's signature, the Alabama Department of Industrial Relations (DIR) assumed the authority to regulate companies that serve as the employer of record for their clients' workers. The Department's Workers' Compensation Division will administer the legislation.
Sometimes called "employee leasing companies" or "staff leasing companies," PEOs provide a variety of services, including payroll, taxes, unemployment insurance, Workers' Compensation insurance, health insurance and other benefits, like 401(k)s and Christmas Club plans. Among other provisions, the new law requires all PEOs that operate in Alabama to register with the state and provide a list of the client businesses they serve. It also authorizes the state to investigate and audit these firms.
Did you know that On Point Technology has developed a "one-click" audit to analyze personnel movements into, out of and among PEOs? Aware's PEO audit can help your agency identify instances of employers underpaying or not filing UI taxes, and spot other abusive tactics that merit further investigation. For more information on how Aware can support your agency's PEO-regulation activities, contact Bob Yokavonus at 908-526-0426 or robert.yokavonus@onpointtech.com.
Congratulations to DIR Director Phyllis Kennedy and her staff who pushed hard for this legislation for several years, and best wishes to Workers' Compensation Division Director Scottie Spates and his staff as they take on this responsibility.
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