S3003 —

2021, c.039 (S3003 1R) §2CHAPTER -39 Note   P.L.An Act concerning contributions to the unemployment compensation fund by employee leasing companies and amending P.L.2013, c.225.

2021, CHAPTER 39, approved March 26, 2021 Senate, No.

3003 (First Reprint)     An Act concerning contributions to the unemployment compensation fund by employee leasing companies and amending P.L.2013, c.225.

  C.43:21-7.8  Responsibilities of employee leasing company.

For For purposes of the "unemployment compensation law," R.S.43:21-1 et seq., a covered employee is an employee of the employee leasing company.

s.s.1563 shall use the same reporting method for all clients.

1563 shall use the same reporting method for all clients.

     c.     (1)  An employee leasing company may elect to use the Client Level Reporting Method, [which uses] using the state employer account, account number and contribution rate of the client company to report and pay all required contributions to the unemployment compensation fund as required by R.S.43:21-7 relating exclusively to covered employees.

     (c)   If a client company is an employing unit when the employee leasing agreement becomes effective, the [client] employee leasing leasing company [retains its] shall use the client company’s account, account number, experience [balance] rate, liabilities, and wage credits[,credits to file quarterly wage reports and R.S.remit payment for taxes associated with those wages;

43:21-7(c)(7)     shall(d)   notUnless applycontrary to applicable law, if a client company is not an employing unit on the date the employee leasing agreement becomes effective, the client company orimmediately qualifies for an employer experience account under R.S.43:21-7 and is subject to section 1 of P.L.1992, c.202 (C.43:21-7.7) for purposes of establishing an initial contribution rate and the employee leasing company]company shall use the client company’s account and account number to file quarterly wage reports and remit payment for taxes associated with those wages;

and      (d)  (e)   UnlessUpon contrarythe todissolution applicableof law,an ifemployee aleasing agreement, the client company isshall notretain an employing unit on the dateexperience thebalance, employeeliabilities, leasingand agreementwage becomescredits effective,for the client companycompany's immediatelyemploying qualifiesunit foraccount. an employer experience account under R.S.

43:21-7 and is subject to section 1 of P.L.1992, c.202 (C.43:21-7.7) for purposes of establishing an initial contribution rate and the employee leasing company shall use the client company’s account and account number to file quarterly wage reports and remit payment for taxes associated with those wages;

and      (e)   [A client is associated with the employee leasing company's employer experience account by means of the employee leasing company's primary federal employer identification number (FEIN) for purposes of liability under the "unemployment compensation law," R.S.43:21-1 et seq.

and federal certification;

and      (f)]   Upon the dissolution of an employee leasing agreement, the client company shall retain the experience balance, liabilities, and wage credits for the client company's employing unit account[;

the client company's federal employer identification number (FEIN) shall become the primary FEIN on the employing unit's account;

and the employee leasing company's FEIN shall not be associated with the client's company's employing unit account].

(cf:        2.   This act shall take effect on January 1, 2021.

P.L.2013, c.225, s.3)         2.  Approved ThisMarch act26, shall2021. take effect 1[immediately] on January 1, 20211.

                                            Concerns contributions to the unemployment compensation fund by employee leasing companies.