Reference: Law, §268.046 Subd.1
The term leased employees refers to a relationship where one legal entity provides labor to another legal entity on a continuing basis for a fee. All employee leasing firms (also commonly referred to as "professional employer organizations" or "PEOs") that operate in Minnesota must register with the Minnesota Department of Commerce before registering with the Minnesota Unemployment Insurance (UI) Program. Employee leasing firms must maintain separate UI employer accounts for each of their clients.
Owners/officers of a taxpaying employer that contracts with an employee leasing firm are in covered employment for the duration of the contract as an employee of the employee leasing firm. The wages of the owners/officers must be reported and taxes paid by the taxpaying employer.