1. (a) A business license fee or another fee that is based upon gross receipts must, in the case of a PEO, be based upon the administrative fee of the PEO.

2. (b) A tax assessed on a per capita or per employee basis must be assessed against a:

   1. (1) client for covered employees; and
   2. (2) PEO for the PEO's employees who are not covered employees.
3. (c) In the case of tax imposed or calculated upon the basis of total payroll, a PEO is eligible to apply a small business allowance or exemption available to the client for covered employees for the purpose of computing the tax.

As added by P.L.245-2005, SEC.7.