State Web Site:  www.california.gov
   
General Business Requirement:

Apply to the Secretary of State for a Certificate of Authority to conduct business in California.

Business Entity Registration Forms & Fees

Licensing/Registration:

Registration requirement only for PEOs involved in the garment industry.

See:  Registration of Employee Leasing Companies and Temporary Agencies

Unemployment Insurance:

California Unemployment & Disability Tax Registration Form

New Employer Rate (2009) = 3.5%
Wage Limit (2009) - $7,000
Employer/Reporting Unit for SUTA contributions:  PEO

Agency Web Site:  California Employment Development Dept.

State Taxes:

California Withholding Tax Registration Form

Agency Web Site:  California Franchise Tax Board

Workers’ Compensation:

Rating Bureau – Workers’ Compensation Insurance Rating Bureau of California

State Specific Requirements for PEO
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Workers’ compensation coverage can be provided by the PEO or Client/Co-employer.  Master Policy and/or Multiple Coordinated Policy provisions may apply.

Exclusive remedy benefits apply to both PEO and client/co-employer with valid contract.

Agency Web Site:  California Dept. of Industrial Relations

Benefit Plans:

PEO and/or client can sponsor fully insured benefit plans.

A PEO sponsored self-funded benefit plan will likely be deemed a MEWA and will be subject to California insurance regulations.

Healthcare mandate in City of San Francisco – See:  San Francisco Health Care Security Ordinance FAQ (questions 17 & 34 address PEOs)

Agency Web Site:  California Dept. of Insurance