PEOs... Why Become Accredited

ESAC's eMAC Service

As more states enact PEO-specific regulations, the time, cost and complexity of complying with multi-state requirements is increasing. ESAC's eMAC (Electronic Multi-state Application and Compliance) service is provided at no extra cost to accredited PEOs and makes state registration and licensing simple.

With eMAC, your PEO saves time and money by authorizing ESAC to use information already submitted as part of accreditation to satisfy state requirements. Authorized state regulators then have fast, efficient and secure online access via eMAC to required licensing/registration information. Here are a few of eMAC's services and advantages:

  • ESAC review to ensure submittals are complete and in compliance with state requirements
  • Secure access of required data to approved state regulators as authorized by each PEO
  • Exemption from certain state bonding requirements
  • Decreased registration/licensing fees in some states
  • Automated system reminders of compliance deadlines for participating states

State regulators have high reviews for eMAC and an increasing number of states are using this time and cost-saving service. States highlighted below in green currently accept ESAC's eMAC services in lieu of all or part of their registration and licensing requirements:

Arkansas
Under §23-92-414 of Arkansas Act 1750, an ESAC accredited PEO can be licensed by the Arkansas Dept. of Insurance by sending to ESAC a $500 check (payable to the State of Arkansas) for the biennial licensing fee. ESAC will forward the PEO’s payment (due every 2 years) and the appropriate licensing data to the Department of Insurance.

Accredited PEOs enjoy a 50% savings on application/renewal fees, and are not required to post the required $100,000 bond or submit application and biennial renewal forms.
Colorado
Under 8-70-114 of the Colorado Employment Security Act, ESAC accredited PEOs may be certified by the Colorado Division of Unemployment Insurance by submitting to ESAC an annual $500 fee (payable to the Colorado Division of Unemployment Insurance) plus submission of ESAC’s online Authorization form and the worksite employer and employee data required by Colorado Form UITL-72. ESAC will forward the fee to the Department and provide authorized Colorado regulators with secure access to the required certification information.

Accredited PEOs are not required to submit Colorado's annual report and certification forms and are also exempted from Colorado's financial security requirements.
Connecticut
Connecticut's Public Act No. 08-105 authorizes ESAC as an assurance organization for registration of ESAC-accredited PEOs by the Connecticut Department of Labor through submission of an annual fee (payable to the Connecticut Wage and Workplace Standards Division) plus a one-time submission of ESAC’s online Authorization/Application form. ESAC will forward the fee to the Department and provide authorized Connecticut regulators with secure access to the required registration information.

Connecticut has also agreed to accept information related to required PEO Client data via each accredited PEO's upload of its monthly client information accessible via the "Submit/Review Clients for Client Assurance Program Coverage" link on each PEO's confidential home page.
Florida
Indiana
Indiana's Code §27-16 authorizes registration of ESAC-accredited PEOs by the Indiana Department of Insurance through submission to ESAC of an annual fee (payable to the State of Indiana Insurance Department) plus a one-time submission of ESAC’s online Authorization/Application form. ESAC will forward the fee to the Department and provide authorized Indiana regulators with secure access to the required registration information.
Kansas
ESAC has been approved as an assurance organization by the Kansas Insurance Department per K.S.A. 44-1704(j) of the Kansas Statute's Professional Employer Organization Registration Act. This means that ESAC accredited PEOs may authorize ESAC to file on their behalf all information required to comply with Kansas’ PEO registration and ongoing reporting requirements.
Louisiana Dept of Insurance
The Louisiana Department of Insurance (DOI) has approved ESAC as an Assurance Organization as authorized by the Louisiana PEO Registration Act (La. R.S. 23:1769 et seq). This means that ESAC accredited PEOs may complete the Louisiana DOI's registration process by simply signing the online authorization form via their confidential ESAC homepage.

(Louisiana is a dual registration state, requiring PEOs to register with both the Department of Insurance and the Louisiana Workforce Commission prior to providing PEO services.)
Louisiana Workforce Commission
The Louisiana Workforce Commission (LWC) has approved ESAC as an Assurance Organization as authorized by the Louisiana PEO Registration Act (La. R.S. 22:1761 et seq). This means that ESAC accredited PEOs may complete the LWC's registration process by simply signing the online authorization form via their confidential ESAC homepage. Accredited PEOs also have the advantage of being exempted from the LWC's $100,000 bond required for those PEOs filing SUTA under the PEO's account number.

(Louisiana is a dual registration state, requiring PEOs to r
egister with both the Louisiana Workforce Commission and the Department of Insurance prior to providing PEO services.)
Montana
The State of Montana's PEO Licensing Act (Title 39, Section 8 of the Montana Code Annotated) provides for acceptance of a PEO's ESAC accreditation to meet the requirements of 39-8-202(6) & (7) related to financial audit and net worth requirements and 39-8-207(2)(b) related to the submission of an independent CPA's quarterly verification of the PEO's payroll-related tax payments. Upon the PEO's one-time submission of ESAC’s online Authorization form, ESAC will provide authorized Montana regulators with secure access to this required licensing information.

Until the statute is amended to enable the full use of ESAC's eMAC services, accredited PEOs are still required to submit all other licensing/renewal forms and fees directly to the Montana Department of Labor & Industry, Employment Relations Division as detailed in the Department's website instructions.
Nebraska
Effective 1/1/2012, Nebraska's PEO Registration Act requires PEOs operating in the state to register with the Department of Labor by no later than 180 days after the effective date.

As authorized by this PEO Registration Act, the Nebraska Department of Labor may approve registration of ESAC accredited PEOs through a one-time submission of ESAC’s online Authorization form plus submission of an annual registration fee. ESAC has received the required recognition from the Nebraska DOL to provide this service as an approved assurance organization.
New Hampshire
The New Hampshire Department of Labor has approved ESAC to serve as an assurance organization to provide information, compliance monitoring services and financial assurance on behalf of ESAC-accredited PEOs pursuant to NH’s Employee Leasing Licensing Act, Title XXIII Labor, Chapter 277-B and NH’s Administrative Rules, Lab 1503.05.

This means accredited PEOs may meet initial and renewal licensing and reporting of client additions/terminations through submission to ESAC of an initial license and annual renewal fee (payable to the New Hampshire Department of Labor), a one-time submission of ESAC’s online Authorization form, and ongoing bi-monthly electronic submission of client addition and termination notices via ESAC’s eMAC site.

Accredited PEOs are exempted from the $100,000 surety bond requirement guaranteeing the payment of employee wages and benefits. (PEOs with audited financial statements that don't demonstrate the $100,000 minimum working capital required by Section 277-B:6I may be required to submit quarterly financials, a surety bond, irrevocable letter of credit or securities.)
Ohio
Under Chapter 4125 of the Ohio Revised Code, the Ohio Bureau of Workers’ Compensation will accept ESAC accreditation in lieu of a bond or letter of credit in an amount equal to the premiums and assessments incurred for the two most recent six-month payroll periods, prior to any discounts or dividends, unless the PEO elects to pay premiums for each six-month payroll period in advance.

ESAC accredited PEOs need only indicate their accreditation status on their registration application and renewal forms.
Oklahoma
As authorized by the Oklahoma PEO Recognition and Registration Act (O.S. Title 40 §600.1 et seq.), the Oklahoma Insurance Department has authorized registration of ESAC accredited PEOs through a one-time submission of ESAC’s online Authorization form and electronic payment via OPTins of registration fees.
Rhode Island
Rhode Island's PEO Act of 2004 contained in Title 5, Chapter 5-75 allows acceptance of ESAC accreditation in lieu of bonding requirements for a PEO's registration by the Rhode Island Department of Revenue, Division of Taxation.
Tennessee
ESAC has been approved as an assurance organization by the TN Department of Commerce & Insurance per the Tennessee PEO Registration Act, TN Code Annotated, Title 62, Chapter 43. This means that ESAC accredited PEOs may authorize ESAC to file on their behalf all information required to comply with Tennessee's PEO licensing and ongoing reporting requirements.

The Department has also agreed to accept required PEO client addition and termination reporting via each accredited PEO's ongoing upload of its client information from its ESAC confidential home page.
Texas
As authorized by Title 2E, Ch. 91.021 of the Texas Statutes Labor Code, the Texas Department of Licensing and Regulation has approved ESAC as an assurance organization to provide information, compliance monitoring services and financial assurance on behalf of ESAC accredited PEOs.
Utah
The State of Utah's PEO Licensing Act (§31A-40-303 of Utah’s Code) authorizes licensing of ESAC accredited PEOs by the Utah Department of Insurance through submission to ESAC of an annual fee (payable to the State of Utah Insurance Department) plus a one-time submission of ESAC’s online Authorization form. ESAC will forward the fee to the Department and provide authorized Utah regulators with secure access to the required licensing information.

Annual renewal fees for accredited PEOs are $1,050 (a reduced rate from the $2,050 fee assessed for non-accredited PEOs).
Vermont
The Commissioner of the Department of Labor has approved ESAC as a national accreditation organization under the terms of V.S.A. Title 21 Chapter 12. Accredited PEOs may provide evidence of their accreditation in lieu of the bond required by §1033(b)(7).
Wisconsin
The State of Wisconsin's PEO Registration Act (Chapter 202 of the Wisconsin Statutes) authorizes registration of ESAC accredited PEOs by the Wisconsin Department of Financial Institutions (as of November 1, 2013, transferred via 2013 Wisconsin Act 20 from the Department of Safety & Professional Services) through submission to ESAC of an initial $75 application fee and annual $107 registration fee thereafter (payable to the State of Wisconsin Financial Institutions), plus a one-time submission of ESAC’s online Authorization form. ESAC will forward the fee to the Department and provide authorized Wisconsin regulators with secure access to the required registration information.

Accredited PEOs are not required to submit Wisconsin's application and annual renewal forms.
West Virginia
Per the requirements of West Virginia Code §33-46A and implementing rules in WVCSR 114-85, ESAC accredited PEOs may be licensed by the Department of Insurance through submission to ESAC of an annual fee plus a one-time submission of ESAC’s online Authorization form. ESAC will forward the fee to the Department and provide authorized West Virginia regulators with secure access to the required licensing information.