Professional Licensing. Staff Leasing Offering Payroll Services a Texas Attorney General Opinion.

The Texas Attorney General Opinion Request: RQ-00348-KP

Who requested the Attorney General Opinion? The Commissioner of Banking

What question will be answered? whether a licensed PEO ( a staff leasing company) that collects payroll funds in advance from an employer-client to be remitted to covered employees at a later time is subject to the licensure requirements ofthe Money Services Act ifthat entity holds a PEO license under the Labor Code.

Why did this issue pop up?

• Texas Department of Banking also regulates PSPs, payroll service providers 
• traditional PSPs receive compensation from Texas employer-clients in exchange for the receipt and subsequent transmission of payroll wages and taxes to employees
• traditional PSPs require a money transmission license