New IRS Rules For New Category Of PEO In 2016 – the CPEO Sample Clauses

New IRS Rules For New Category Of PEO In 2016 – the CPEO. The Tax Increase Prevention Act of 2014 (“TIPA”) was enacted in December 2014. One of the changes made was a change in the Internal Revenue Code to create a new category of professional employer organizations, referred to as “certified professional employer organizations” (certified PEOs or CPEOs). These provisions take effect on January 1, 2016, but the IRS has announced that it will begin accepting applications for PEO certification beginning July 1, 2016. The significance of being characterized as a certified PEO is that a CPEO is treated as being the employer of designated employees of its customer (“worksite employees”) for federal employment tax purposes. CPEOs will have exclusive responsibility for paying worksite employees’ wages and for collecting, depositing, and paying federal employment taxes. The CPEOs’ customers will continue to be treated as the actual employer of the worksite employees for other purposes, including other tax purposes, e.g., will be allowed to claim tax credits for employment of the worksite employees if applicable conditions are satisfied. Classification as a CPEO is not automatic. Effective in 2016, a PEO will be able to voluntarily apply to become a certified PEO by: • Meeting tax status, background and audit requirements that will be established by Treasury regulations that are yet to be issued, and • Agreeing to: ○ satisfy bonding and independent financial review requirements; ○ satisfy reporting obligations imposed by regulation; ○ use an accrual method of accounting to compute its taxable income (unless another method is approved by the Secretary of the Treasury); ○ verify its ongoing compliance with the various CPEO requirements; and ○ notify the Secretary of the Treasury of the occurrence of any changes that affect the accuracy of previous agreements or information provided.
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Related to New IRS Rules For New Category Of PEO In 2016 – the CPEO

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(4) If the District objects to the assignment of a covered employee on the basis of the covered employee's criminal h istory record information, Contractor agrees to discontinue using that covered employee to provide services at the District. Noncompliance or misrepresentation regarding this certification may be grounds for contract termination. None Texas Business and Commerce Code § 272 Requirements as of 9-1-2017 SB 807 prohibits construction contracts to have provisions requiring the contract to be subject to the laws of anothe r state, to be required to litigate the contract in another state, or to require arbitration in another state. A contract wit h such provisions is voidable. 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The relevant section addressed by this form reads as follows: Texas Government Code Sec. 2270.002. PROVISION REQUIRED IN CONTRACT. A governmental entity may not ent er into a contract with a company for goods or services unless the contract contains a written verification from the c ompany that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract.engaged by ESC Region 8/The Interlocal Purchasing System (TIPS) 0000 Xxxxxxx 000 Xxxxx Xxxxxxxxx,XX,00000 verify by this writing that the above-named company affirms that it (1) does not boycott Israel; and (2) will not boycot t Israel during the term of this contract, or any contract with the above-named Texas governmental entity in the futur e. I further affirm that if our company’s position on this issue is reversed and this affirmation is no longer valid, that t he above-named Texas governmental entity will be notified in writing within one (1) business day and we understand that our company’s failure to affirm and comply with the requirements of Texas Government Code 2270 et seq. shall be grounds for immediate contract termination without penalty to the above-named Texas governmental entity. AND our company is not listed on and we do not do business with companies that are on the the Texas Comptroller of Pu blic Accounts list of Designated Foreign Terrorists Organizations per Texas Gov't Code 2270.0153 found at xxxxx://x xxxxxxxxxx.xxxxx.xxx/xxxxxxxxxx/xxxx/xxxxxxx-xxxxxxxxx.xxx I swear and affirm that the above is true and correct. YES

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