Publications and Forms
The Division of Employment Security may consider an employer who provides, or "leases", employees to another business to be a "lessor employing unit". The business to whom the employees are provided is termed a "client lessee".
The Missouri Employment Security Law states that a lessor employing unit will be responsible for reporting all wages paid and be liable for contributions (tax) due on the wages paid.
- The lessor employing unit has the option to make a financial guarantee to the Division to pay contributions due. The lessor may guarantee payment by posting and maintaining a surety bond, depositing securities, providing an irrevocable letter of credit, or obtaining a certificate of deposit. This action will relieve the lessor's clients of any liability. It will also allow the lessor to report all employees on one quarterly return.
If the lessor does not make a financial guarantee to the Division that contributions will be paid, the client lessee will be jointly liable for contributions due on wages paid to the employees provided to it. In order to identify the employees provided to each client lessee, the lessor must file a separate quarterly return for each client lessee.
To maintain correct records, the Division requires the lessor to submit a quarterly list of its clients.
NOTE: The above provisions do not apply to private employment agencies who provide their employees to others on a temporary help basis.
An informational brochure regarding unemployment tax information for 501(c)(3) Nonprofit Corporations regarding exemptions, voluntary election of coverage and reporting requirements.
Some employers ("lessors") lease employees to clients. Unless the lessor provides a financial guarantee, such as a surety bond, to ensure prompt payment of unemployment liabilities: (1) the lessor must file a separate Quarterly Contribution and Wage Report for the employees leased to each client; and (2) the client is jointly liable for the contributions otherwise due on the workers it leases from the lessor. MODES-4252 must be used for the posting of a surety bond.