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Professional Employer Organizations

Only you and your legal advisor are able to determine whether your particular business is engaged in providing PEO services. Please see the excerpt below:

Professional Employer Organizations are regulated under Act 370 of 2010.  The Act defines a "PEO" or "professional employer organization" as any person engaged in the business of providing professional employer services regardless of its use of a descriptive term other than "professional employer organization" or "PEO".  PEO does not include any of the following: 

(i) An arrangement in which a person, whose principal business activity is not entering into professional employer agreements and does not hold itself out as a PEO, shares employees with a commonly owned company within the meaning of section 414(b) and (c) of the internal revenue code of 1986, 26 USC 414. 

(ii) A provider of temporary help services as defined by section 29 of the Michigan employment security act, 1936 

(Ex Sess) PA 1, MCL 421.29. 

(iii) Independent contractor arrangements by which a person assumes responsibility for the product produced or service performed by that person or his or her agents and retains and exercises primary direction and control over the work performed by the individuals whose services are supplied under such arrangements. 

A complete copy of the statute can be found by clicking this link: Public Act 370 of 2010.