The following is designed to answer common questions you may have regarding registration and bonding of Professional Employer Organizations (PEO) and Professional Employer Groups (PEG).

• What is a Professional Employer Organization?
• What is a Professional Employer Group?
• What qualifications do a PEO/PEG need to meet to obtain a "Small Operations" registration?
• When do PEO/PEG registrations have to be renewed?
• Does a PEO/PEG registrant have to meet any particular financial requirements?

What is a Professional Employer Organization?

A professional employer organization is a person that is engaged in the business of entering into written contracts for the provision of the non-temporary, ongoing employee workforce of a client and providing services under those contracts and that under those contracts has the obligation to pay the employees providing services for those clients from its own accounts.

What is a Professional Employer Group?

"Professional Employer Group" means 2 or more professional employer organizations that are controlled by the same person.

What qualifications do a PEO/PEG need to meet to obtain a "Small Operations" registration?

The following requirements must be met:

• It must be registered as a professional employer organization/group in another state.
• It cannot maintain an office in Wisconsin.
• It cannot solicit clients that are located or domiciled in Wisconsin. "Client" means any person that enters into a written contract with a professional employer organization/group for the provision of the non-temporary, ongoing, workforce of the person.
• It cannot have more than 50 employees performing services for clients in Wisconsin on any given day.

When do PEO/PEG registrations have to be renewed?

Online renewal opens June 1st each year. Renewal must be submitted online by July 31st (or until Sept. 30th with late fee).

Does a PEO/PEG registrant have to meet any particular financial requirements?

Yes, Professional employer organizations and professional employer groups should maintain net working capital (as defined by generally accepted accounting principles) of at least $100,000 at all times. If the registrant has less than $100,000 in working capital, they must submit a surety bond form 2843 to the department. All forms can be found on the forms page.