Okla. Stat. tit. 40, § 40-3-120: Required filings by professional employer organizations

– Payment of contributions – Change of election.

REQUIRED FILINGS BY PROFESSIONAL EMPLOYER ORGANIZATIONS –

PAYMENT OF CONTRIBUTIONS – CHANGE OF ELECTION.

A. Each Professional Employer Organization, or PEO, shall file

all reports and pay all contributions required by the Employment

Security Act of 1980 and the Rules of the Oklahoma Employment

Security Commission under one of the following two options. The PEO

may choose the option under which it will report and pay. All PEOs

that do not exercise their option within the compliance date in

subsections C and D of this section shall be assigned to option 1

below. All current client accounts and client accounts set up or

acquired after the election shall be reported and paid according to

the option elected by the PEO or the option assigned to the PEO if

no election is made. The two options are as follows:

1. The PEO shall file quarterly tax returns to report the wages

of all covered employees of all its clients and pay all

contributions due on those wages under one account of the PEO; or

2. The PEO shall file quarterly tax returns to report the wages

of all covered employees under the direction and control of each

client and pay all contributions due on those wages under the

account assigned to that client by the Oklahoma Employment Security

Commission; provided:

a. a PEO choosing this option shall notify the Oklahoma

Employment Security Commission in writing,

b. a PEO choosing this option shall assist the Commission

in the process of the separation and identification of

the contribution history, the benefit experience

history, and the payroll of each of its clients, and

the Commission shall transfer that experience to the

client account,

c. the Commission shall determine the tax rate of each

client account separately based upon the client's

contribution history, benefit experience history and

actual payroll,

d. if there is not sufficient experience in the client

account after the transfer of experience to establish

a tax rate, the account will be assigned a tax rate

pursuant to Section 3-110.1 of this title, and

e. a PEO choosing this option shall produce all

documentation and information necessary for the

Oklahoma Employment Security Commission to create the

client account within sixty (60) days of choosing this

option. If the information needed by the Commission

is not produced within this sixty-day period, the PEO

shall revert to reporting under the option provided

for in paragraph 1 of subsection A of this section.

B. Within thirty (30) days after the end of each calendar

quarter, each PEO shall file a list of all its clients setting out

the federal employer identification number, the name, the client's

contact information and the current registration certificate of the

PEO issued pursuant to Section 600.4 of this title. The client list

shall be filed in a format prescribed by the Oklahoma Employment

Security Commission. Materials submitted pursuant to this section

shall be deemed records submitted pursuant to the Oklahoma

Professional Employer Organization Recognition and Registration Act

and shall be treated as confidential and subject to the provisions

of subsection C of Section 600.6 of this title and Section 4-508 of

this title.

C. Any PEO with a current employer tax account with the

Oklahoma Employment Security Commission as of the effective date of

this act shall comply with the provisions of this section no later

than January 1, 2015.

D. Any PEO that does not have a current employer tax account

with the Oklahoma Employment Security Commission as of the effective

date of this act shall comply with the provisions of this section

upon becoming liable for contributions under the Employment Security

Act of 1980.

E. After the initial election or assignment of the option

ary 1, 2015.

D. Any PEO that does not have a current employer tax account

with the Oklahoma Employment Security Commission as of the effective

date of this act shall comply with the provisions of this section

upon becoming liable for contributions under the Employment Security

Act of 1980.

E. After the initial election or assignment of the option

provided for in subsection A of this section, a PEO shall be

permitted to change its election one time only. The change of

election shall be made by the PEO in writing. The election shall

become effective in the calendar year following the date the

Commission approves the election of the PEO. If the Commission

approves a change of election, all contribution history, benefit

experience history and payroll of each client shall be transferred

to the pooled account, if the option in paragraph 1 of subsection A

of this section is chosen, or the individual client accounts, if the

option in paragraph 2 of subsection A of this section is chosen.