Source: https://codes.findlaw.com/us/title-26-internal-revenue-code/26-usc-sect-7705.html
Timestamp: 2020-05-27 03:19:53
Document Index: 393780971

Matched Legal Cases: ['§ 7705', '§ 7705', '§ 7705', '§ 7705', '§ 7705', '§ 7705']

26 U.S.C. § 7705 - U.S. Code Title 26. Internal Revenue Code § 7705 | FindLaw
26 U.S.C. § 7705 - U.S. Code - Unannotated Title 26. Internal Revenue Code § 7705. Certified professional employer organizations
(a) In general.--For purposes of this title, the term “certified professional employer organization” means a person who applies to be treated as a certified professional employer organization for purposes of section 3511 and has been certified by the Secretary as meeting the requirements of subsection (b).
(b) Certification requirements.--A person meets the requirements of this subsection if such person--
(c) Bond and independent financial review.--
(1) In general.--An organization meets the requirements of this paragraph if such organization--
(2) Bond.--
(A) In general.--A certified professional employer organization meets the requirements of this paragraph if the organization has posted a bond for the payment of taxes under subtitle C (in a form acceptable to the Secretary) that is in an amount at least equal to the amount specified in subparagraph (B).
(B) Amount of bond.--For the period April 1 of any calendar year through March 31 of the following calendar year, the amount of the bond required is equal to the greater of--
(3) Independent financial review requirements.--A certified professional employer organization meets the requirements of this paragraph if such organization--
(4) Controlled group rules.--For purposes of the requirements of paragraphs (2) and (3), all certified professional employer organizations that are members of a controlled group within the meaning of sections 414(b) and (c) shall be treated as a single organization.
(5) Failure to file assertion and attestation.--If the certified professional employer organization fails to file the assertion and attestation required by paragraph (3) with respect to any calendar quarter, then the requirements of paragraph (3) with respect to such failure shall be treated as not satisfied for the period beginning on the due date for such attestation.
(6) Audit date.--For purposes of paragraph (3)(A), the audit date shall be six months after the completion of the organization's fiscal year.
(d) Suspension and revocation authority.--The Secretary may suspend or revoke a certification of any person under subsection (b) for purposes of section 3511 if the Secretary determines that such person is not satisfying the agreements or requirements of subsections (b) or (c), or fails to satisfy applicable accounting, reporting, payment, or deposit requirements.
(e) Work site employee.--For purposes of this title--
(1) In general.--The term “work site employee” means, with respect to a certified professional employer organization, an individual who--
(2) Service contract requirements.--A contract meets the requirements of this paragraph with respect to an individual performing services for a customer if such contract is in writing and provides that the certified professional employer organization shall--
(3) Work site coverage requirement.--The requirements of this paragraph are met with respect to an individual if at least 85 percent of the individuals performing services for the customer at the work site where such individual performs services are subject to 1 or more contracts with the certified professional employer organization which meet the requirements of paragraph (2) (but not taking into account those individuals who are excluded employees within the meaning of section 414(q)(5) ).
(f) Public disclosure.--The Secretary shall make available to the public the name and address of--
(g) Determination of employment status.--Except to the extent necessary for purposes of section 3511 , nothing in this section shall be construed to affect the determination of who is an employee or employer for purposes of this title.
(h) Regulations.--The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.
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