Browse
PEOs by state
PEO requirements vary by state. Compare licensing, payroll rules, required programs, and the state-specific questions each proposal should answer.
California
Daily overtime, break rules, final-pay deadlines, state disability withholding, and local ordinances create California-specific payroll and HR duties.
Texas
No state income tax and optional workers compensation reduce state payroll requirements, so a Texas PEO proposal should be evaluated mainly on benefits, insurance, service, and multi-state support.
New York
Mandatory disability coverage, Paid Family Leave, pay transparency, local wage rules, and PEO registration create several New York-specific employer duties.
Florida
Florida licenses employee leasing companies through its own state board, has no state income tax, and uses state-specific reemployment-tax methods for PEO clients.
Colorado
FAMLI paid leave, a state retirement mandate, pay transparency, daily overtime, and vacation-payout rules create several Colorado-specific payroll duties.
Massachusetts
Mandatory treble damages for wage violations, PFML payroll contributions, earned sick time, and a PEO registration law with a $250,000 bond make Massachusetts a state where payroll mistakes are unusually expensive.
Washington
Washington uses a state workers compensation fund, keeps unemployment accounts at the client level, and requires payroll administration for PFML and WA Cares.
New Jersey
New Jersey combines employee-leasing registration, disability and family leave insurance, a high unemployment wage base, paid sick leave, and WARN severance requirements.
Illinois
Illinois combines statewide paid leave, biometric privacy rules, pay transparency, a retirement mandate, and separate Chicago and Cook County ordinances.
Ohio
Ohio sells workers compensation through the state fund, treats the PEO as employer of record for comp under a dedicated statute, and adds extensive municipal income-tax withholding.
Georgia
Georgia requires a separation notice on the last day of work, offers a certified drug-free workplace workers compensation credit, and mandates E-Verify for employers with 11 or more employees.
Pennsylvania
Municipal earned income tax withholding under Act 32, an employee-paid unemployment contribution on unlimited wages, mandatory client-level unemployment reporting for PEO arrangements, and an independent workers compensation bureau make Pennsylvania payroll unusually local.
Virginia
A 2026 legislative wave brought Virginia pay transparency, scheduled minimum wage steps to $15.00, and a broad non-compete ban, while PEOs register with the Workers Compensation Commission rather than a licensing board.
North Carolina
North Carolina licenses PEOs through the Department of Insurance with a public list to check, indexes its unemployment wage base annually, and defaults to paying out accrued vacation unless a written policy says otherwise.
Arizona
Arizona repealed PEO registration in 2024, requires E-Verify of every employer, mandates earned paid sick time statewide, and reports PEO client wages under the PEO's own unemployment account by statute.
Michigan
Michigan licenses PEOs, preserves each client's own unemployment account and rate by statute, mandates earned sick time for every employer, and layers city income taxes in 24 cities on top of state withholding.