Missouri Laws 285.725 – Working capital or bond requirements
Except as provided by section* 285.715, each PEO or collectively each PEO group shall maintain either:
(1) Positive working capital as defined by generally accepted accounting principles at registration as reflected in the financial statements submitted to the secretary of state with the initial registration and each annual renewal; or
Terms Used In Missouri Laws 285.725
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- State: when applied to any of the United States, includes the District of Columbia and the territories, and the words "United States" includes such district and territories. See Missouri Laws 1.020
(2) A PEO or PEO group that does not have positive working capital may provide a bond, irrevocable letter of credit, or securities with a minimum market value equaling the deficiency plus one hundred thousand dollars to the secretary of state. Such bond is to be held by a depository designated by the secretary of state securing payment by the PEO of all taxes, wages, benefits, or other entitlement due to or with respect to covered employees if the PEO does not make such payments when due.