Ark. Code Ann. § 23-92-401 et seq. and 23 CAR pt 32, the Employer Service Assurance Organizations Rule, establish licensing requirements for Professional Service Organizations (“PEOs”) operating in Arkansas.
A PEO is any person or legal entity that provides professional employer services through a co‑employment relationship. In this arrangement, the PEO shares employer responsibilities—including the right to direct and control employees—with a client for some or all of the client’s workforce. This relationship must involve a majority of the client’s employees and must be intended to be ongoing rather than temporary.
Professional employer services do not include work performed by temporary employees or by individuals who are classified as independent contractors. Temporary help services are also not considered professional employer services.
Applicants should refer to the forms below for instructions on preparing and filing a PEO application. The Compliance Division is available to provide additional guidance if needed.
Under Ark. Code Ann. § 23‑92‑414, PEOs that are accredited by ESAC—an Employer Service Assurance Organization (“ESAO) licensed in Arkansas—are exempt from submitting the required $100,000 bond and from filing the standard application and biennial renewal forms. Accredited PEOs also receive a 50% reduction in the fees associated with the initial application and biennial renewals.
PEO Forms
- Form PEO-P – PEO Application
- Form PEO-PR – PEO Renewal Application
- Form PEO-E – Initial and Renewal PEO Exempt Application
- Form PEO-G – Group PEO Application
- Form PEO-GR – Group PEO Renewal Application
- PEO Cross Guarantee Form
- PEO Bond Form
- Form PEO-C – Change of Control of a PEO Form
- Controlling Person Exhibit Form
- Form PC-EL – PEO Quarterly Report
- Form ESAO-A1 – Employer Assurance Service Organization Application
By using our Company Search database you can search for licensed professional employer services organizations. You can also get a complete listing of every licensed professional employer organization doing business in Arkansas.