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Missouri Lessor Employing Unit/Client Lessee Law (MODES 4267)
SKU: FFMO175 |   E-mail this product to a friend
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Product Description

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
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