For information for Professional Employer Organizations (PEO), please refer to the forms and bulletin below for guidance in preparing and filing your application. You may contact the Compliance Division if you need additional help or information.

Alternatively, under §23-92-414 of Arkansas Act 1750 (Arkansas Code), PEOs that are accredited by ESAC, which is a licensed Employer Assurance Service Organization (ESAO) in Arkansas, are not required to post the required $100,000 bond or submit the application and biennial renewal forms. Additionally, accredited PEOs receive a 50% savings on the fees required for the initial application and biennial renewals.

The following links are to the PEO Bulletin and forms to be used by PEO’s under Act 1750 of 2003, A.C.A. 23-92-401 et seq. (Arkansas Code):

Rule 81 has been issued regarding Employer Service Assurance Organizations.

Current Arkansas law and regulations provide for certain licensing requirements to engage in the business of a Professional Employer Organization (“PEO”). Act 1750 of 2003 updated and modernized the regulatory oversight of this type of profession and renamed these businesses “Professional Employer Organizations.”

A PEO is any person or legal entity engaged in the business of providing professional employer services by entering into a co-employment relationship which at least a majority of the employees of a client and providing professional employer services to the client or to a division or work unit of a client for its covered employees and in which the arrangement is intended to be, or is, ongoing rather than temporary in nature; and employer responsibilities, including the right of direction and control of the employees, are shared by the PEO and its clients.

Professional employer services do not include services performed by temporary employees or by persons determined to be independent contractors with respect to the recipient. Temporary help services are not professional employer services.

Other useful information for Professional Employer Organizations: