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