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Professional Employer Organizations and Groups Frequently Asked Questions

Professional Employer Organization and Professional Employer Group FAQs

Professional Employer Organization and Professional Employer Group FAQs

What is a Professional Employer Organization?
A professional employer organization is a person that is engaged in the business of entering into written contracts for the provision of the non-temporary, ongoing employee workforce of a client and providing services under those contracts and that under those contracts has the obligation to pay the employees providing services for those clients from its own accounts.

What is a Professional Employer Group?
"Professional Employer Group" means 2 or more professional employer organizations that are controlled by the same person.

What is the difference between the Professional Employer Group and Professional Employer Group-Small Operations registrations?
A Professional Employer Group-Small Operations registrant does not need to submit its financial statements.

What is the difference between the Professional Employer Organization and Professional Employer Organization-Small Operations registrations?
A Professional Employer Organization-Small Operations registrant does not need to submit its financial statements.

What qualifications do a Professional Employer Group/Organization need to meet to obtain a "Small Operations" registration?
The following requirements must be met:

  • It must be registered as a professional employer group/organization in another state.
  • It cannot maintain an office in Wisconsin.
  • It cannot solicit clients that are located or domiciled in Wisconsin. "Client" means any person that enters into a written contract with a professional employer organization/group for the provision of the non-temporary, ongoing, workforce of the person.
  • It cannot have more than 50 employees performing services for clients in Wisconsin on any given day.

If my professional employer organization/group is registered with Employer Services Assurance Corporation ("ESAC"), do I still need to register with the State of Wisconsin?
Yes; however, you can complete and submit an Assurance Organization Certification form (Form #2854) rather than submitting the Application for Registration as a Professional Employer Group or a Professional Employer Organization form (Form #2840 or Form #2858).

When do professional employer group and professional employer organization registrations have to be renewed?
Renewal applications must be submitted to the department by July 31st.

Does a professional employer group and professional employer organization registrant have to meet any particular financial requirements?
Professional employer groups and professional employer organizations should maintain net working capital (as defined by generally accepted accounting principles) of at least $100,000 at all times. If the registrant has less than $100,000 in working capital, they must submit a surety bond to the division. Please refer to the Application for Registration as a Professional Employer Group or a Professional Employer Organization for additional information on the surety bond.