PEO Regulators... Why ESAC is Important

Assurance Organization Services

ESAC was first approved as a PEO "Assurance Organization" by the Arkansas Department of Insurance in 2003. Since that time, ESAC has been approved by and has provided services to 15 states, with additional state service relationships continuing to be established each year.

To enable authorization for the use of ESAC's services, several states have amended their PEO registration or licensing act or regulation to accept electronic filings and services of an independent national assurance organization (similar to the below "PEO Assurance Organization or Electronic Filing Provision"). ESAC is the only independent national assurance organization in the PEO industry.

This service is made available to PEOs as an optional means of compliance at no cost to the state and with the agency retaining full regulatory authority. Both the agency and participating PEOs benefit from ESAC's electronic filing and assurance organization services by saving time and reducing application and compliance reporting errors and omissions.


Example PEO Assurance Organization or Electronic Filing Provision

Electronic Filing and Compliance:The [insert State Agency] shall to the extent practical permit the acceptance of electronic filings in conformance with [the Uniform Electronic Transactions Act or insert relevant state provision], including applications, documents, reports, and other filings required by this Act. The [insert State Agency] may provide for the acceptance of electronic filings and other assurance by an independent and qualified assurance organization approved by the Director that provides satisfactory assurance of compliance acceptable to the Department consistent with or in lieu of the requirements of [insert relevant sections of Act] and other requirements of this Act or the rules promulgated pursuant to it. The Director shall permit a PEO to authorize such an approved assurance organization to act on the PEO’s behalf in complying with the registration requirements of this Act, including electronic filings of information and payment of registration fees. Use of such an approved assurance organization shall be optional and not mandatory for a Registrant. Nothing in this subsection shall limit or change the Department’s authority to register or terminate registration of a professional employer organization or to investigate or enforce any provision of this Act.