purposes, more than one account may be assigned, but the experience is combined in to one
rate.
Multiple accounts must file utilizing separate assigned account numbers. Once the account
numbers have been issued, we strongly urge all employers to use the Tax21 system to file all
quarterly reports. If paper reports are necessary separate “Employer’s Quarterly Wage and
Contribution Report” (Form DWS-ARK-209B, DWS-ARK-209BR-Reimbursable Employers Only or
DWS-ARK-209BS-Seasonal Industries Only) for each place of business.
Employee Leasing
The term “lessor employing unit” is defined as an independently established business entity
which engages in the business of providing leased employees to any other employer, individual,
organization, partnership, corporation, or other legal entity, referred to herein as a “client.”
Any legal entity determined to be engaged in the business of “outsourcing” shall be considered
a lessor employing unit. Additionally, the licensing requirements of the Arkansas PEO
Recognition and Licensing Act (Arkansas Code Annotated 23-92-401 et seq.), as administered
by the Arkansas Insurance Division, must be satisfied. Lessor employing units must also obtain
an employee leasing firm license from the Arkansas Department of Insurance, post a surety
bond in the amount required by them, and meet the other requirements of that licensing
department. (The surety bond required for licensing is in addition to the bond requirements of
the Division of Workforce Services.)
If, after three years all contributions have been paid in a timely manner, the bond held for a
bonded lessor employer may, upon request, be reduced from $100,000 to $35,000. Bonded
lessor employers must report wages for new clients on separate client accounts for three years;
after which time, the bonded lessor employer shall report all wages under its own account
number and federal ID number, using the assigned rate. Non-bonded lessor employers must
always report wages under its clients accounts.
In lieu of a surety bond, the lessor employing unit may deposit, in a depository designated by
the Director, securities with marketable value equivalent to the amount required for the surety
bond. The securities so deposited shall include authorization to the Director to sell any such
securities in an amount sufficient to pay any contributions which the lessor employing unit fails
to promptly pay when due.
Reference Arkansas Code Annotated, Section 11-10-717 (e) (2) (B).
The clients of lessor employing units must continue to report wages paid to their employees
and pay the contributions due on them until the lessor employing unit has complied with the
security bond requirements as stated above. In addition, the employee leasing company is
prohibited from moving the wages of a client from one lessor employing unit to another lessor
employing unit account with a lower rate.
A lessor employing unit, that has not posted a Surety Bond or provided other acceptable
collateral, must submit separate quarterly contribution and wage reports for each of its client
entities. When an employer enters into a contract with a lessor employing unit, which has not
posted a $100,000 surety bond, a new account number will be issued. If the client has an
existing account with DWS, it will be terminated, a new account number issued as a successor
account, and the experience rating transferred to the successor account. A new employer will
have a new DWS number issued. The lessor information on the account will be the lessor’s