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PEO

Is there any type of form that needs to be filed at the federal level for PEO reporting? The state of IL requires that a PEO report any clients under the PEO quarterly. I believe this reporting prevents nonfiling notices from being generated. Is there any requirement at the federal level? Currently, when we receive a notice that a client that is reported under the PEO did not file their 941, I send a letter explaining that the client is included on the PEO return -- is there a form, etc. that would prevent us from getting these notices?

Comments

  • Is the client sending in their last 941/940 as the "final" one. That is marking the box that says this is the last quarter that they will have employees? I know the IRS isn't always great about seeing it and getting it in their system, but I would always counsel your clients to make sure they do so. Might stem some of the tide!

    I've done this when closing an EIN due to the sale of a business and never received any notices from the IRS on subsequent quarters. So it seems to have worked for me. But this is something the client would have to do.

    The EIN would still be usable for other reasons, just not for payroll taxes/benefits/WC, etc.
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