EMPLOYEE-LEASING COMPANIES
16.1 EMPLOYEE-LEASING COMPANY CERTIFICATIONS
16.1.1 Statutory Reference: 8-70-114, C.R.S.
16.1.2 Employee-Leasing Company Certification Considered. An employer who meets the definition of an employee-leasing company as described in 8-70-114 (2)(a)(V), C.R.S., shall be certified only if:
.1 The employer completes and submits an initial and annual employee-leasing company application and work-site employer and employee list as required by regulation 16.1.3., and.2 Upon filing the application and work-site employer and employee list, the employer submits a nonrefundable fee of $500, and
.3 In conjunction with the application, the employer provides evidence of securitization of unemployment taxes as set forth in 8-70-114 (2)(g)(III) and regulation part VIII, and
.4 The employer completes and submits a quarterly report of all terminated and activated employee-leasing company contracts in the previous calendar quarter using such filing methods as may be prescribed by the division. Quarterly reports are to be submitted no later than the last day of the month following the completion of a calendar quarter.
16.1.3 Application for Certification. An employer seeking to be a certified employee-leasing company shall make application with the division upon such forms and using such filing methods as may be prescribed by the division. Such application shall include a complete list of all coemployer clients as follows:
.1 A list of all work-site employers with whom a coemployment relationship exists that shall include name of each business, the work-site address(es) for each business, actual initiation dates and termination dates of each employee-leasing company contract, gross wages for each business per quarter, the federal employer identification number of each business, and the name, social security number, and quarterly wages of each employee performing work for each coemployer client.
16.1.4 Initial Application. For the purposes of initial employee-leasing certification, the initial certification application shall be filed with the division on or before March 23, 2009.
16.1.5 Certification Determination. Upon review of the matters set forth in the application and such other information as it may require, the division shall issue a determination as to the employee-leasing company’s certification. Such certification shall be valid until the end of the state’s first fiscal year that is more than one year after the effective date of the initial certification.
16.1.6 Appeal From Determination. Any employer who wishes to protest a determination made under the provisions of 8-70-114, C.R.S., or this part XVI of the regulations shall file a notice of appeal with the division. Such notice of appeal must be received by the division within twenty calendar days after the date the certification determination was mailed. A hearing may be obtained in accordance with 8-73-113, C.R.S., and regulation 11.2.
16.1.7 Annual Certification. Subsequent to the initial certification, every employer who has been certified as an employee-leasing company shall file a certification on prescribed forms and using such filing methods as may be prescribed by the division on or before the last day of June of each year, except as set forth in regulation 16.1.4. An employee-leasing company shall retain its certification only if all requirements defined in 16.1.2 are met.
16.1.8 Notification. An employee-leasing company or the work-site employer shall notify each covered employee in writing at the time of hire of the coemployment relationship. The employee-leasing company contract shall specify whether the responsibility for making written notice belongs to the employee-leasing company or the work-site employer.
16.1.9 Loss of Employee-Leasing Company Certification. If an employer, subsequent to the date on which he or she was designated as an employee-leasing company, fails to fulfill the requirements of 8-70-114, C.R.S., or this part XVI of the regulations without good cause, such employer shall lose his or her employee-leasing company certification. Any determination by the division that an employer has lost his or her employee-leasing company certification shall be made in writing and provided to the employer in accordance with regulation 1.3.11.1 said determination shall be subject to appeal pursuant to regulation 16.1.6.
16.2 EMPLOYEE-LEASING COMPANY STATUS
16.2.1 Statutory Reference: 8-70-114
16.2.2 Employee-Leasing Company Employer Account. An employee-leasing company shall be the only reporting unit for each covered employee for unemployment reporting purposes beginning with all wages paid on or after January 1, 2010.
.1 If an employee-leasing company does not currently have an unemployment insurance employer account, each employee-leasing company shall obtain an unemployment insurance employer account number and experience rate.
16.2.3 Effect of Agency Relationship Upon Status as Employee Leasing Company. If an entity, or any portion of its business, meets the requirements under section 8-70-114 (2), C.R.S., that entity shall be determined to be an employee leasing company and not an agent, for the purposes of section 8-70-114, C.R.S.
16.3 PROVISION OF BOND OR OTHER SECURITY.
16.3.1 Statutory Reference: 8-70-114 (2)(g)(III), C.R.S.
16.3.2 Holding a Deposit of Money or Security. Any deposit of money or securities in accordance with section 8-70-114 (2)(g)(III)(A), C.R.S. shall be retained by the division in an escrow account until liability under section 8-70-114, C.R.S. is terminated, at which time it shall be returned to the organization, less any deductions pursuant to regulation 16.3.3.
16.3.3 Deduction From a Deposit Of Money or Security. The division may deduct from the money deposited by an employee-leasing company pursuant to regulation 16.3.2 or sell the securities an employee-leasing company has so deposited to the extent necessary to satisfy any due and unpaid taxes and any applicable interest and penalties.
16.4 QUALIFIED ASSURANCE ORGANIZATION
16.4.1 Statutory Reference: 8-70-114 (2)(g)(III)
16.4.2 Application to be an Approved Assurance Organization. Any assurance organization seeking to be an approved, qualified assurance organization in accordance with 8-70-114 (2)(g)(III)(C), C.R.S., shall make application with the division using such filing methods as may be prescribed by the division. Such application shall include evidence of securitization of unemployment taxes as set forth in 8-70-114 (2)(g)(III), C.R.S.
16.4.3 Assurance-Organization Approval. Upon approval, each assurance organization shall receive written notification from the division director. Such approval shall be valid for three years unless the assurance organization fails to comply with any provision of the law.
16.4.4 Subsequent Approval. An approved assurance organization shall make subsequent application with the division at least ninety days prior to the expiration date specified in the written approval notice.