Employer/Employee Benefits

Retirement and Welfare Benefit Plans

The client and the PEO are each considered an employer under the laws of Texas for purposes of sponsoring retirement and welfare benefit plans for covered employees. A PEO may sponsor a single welfare benefit plan under which eligible covered employees of one or more clients may elect to participate. A welfare benefit plan may include health, life, and disability insurance.

For more information on retirement and health benefit plans available, contact the Texas Department of Insurance or call (800) 578-4677.

Self-Funded Health Benefit Plan

A PEO may offer or sponsor a benefit plan that is not fully insured if the PEO meets the requirements of Labor Code § 91.0411 and is approved to sponsor the plan by the Commissioner of Insurance at the Texas Department of Insurance (TDI). The Commissioner of Insurance has adopted rules that provide requirements that must be met by the PEO license holder and the plan.

For additional information, see Labor Code § 91.0411, Self-Funded Health Benefit Plan; and the TDI rules at Title 28, Part 1, Chapter 13, Subchapter F, Professional Employer Organizations Sponsoring Self-Funded Employee Health Benefit Plans.

For more information on self-funded health benefit plans and requirements, contact the Texas Department of Insurance (TDI) or call (800) 578-4677.

Workers' Compensation Policy

The PEO or the client may offer workers’ compensation insurance for the covered employees, but it is optional. A PEO does not have to obtain workers’ compensation or offer workers’ compensation to covered employees to obtain a PEO license or a PEO limited license.

If workers’ compensation coverage is offered, the PEO must submit a certificate of insurance for workers compensation to the Department during license application and license renewal.

If workers’ compensation coverage is offered, the professional employer services agreement between the PEO and client must state which party must maintain the coverage, and a copy of the agreement must be given to the Texas Department of Insurance (TDI) on request. The information obtained by TDI is confidential and not subject to disclosure under the Texas Public Information Act, Texas Government Code, Chapter 552.

For more information regarding workers’ compensation insurance, contact TDI’s Workers’ Compensation Division or call (800) 372-7713.