purposes of the determination of tax credits and other economic incentives
provided by the Commonwealth or other government entity and based on
employment, covered employees shall be deemed solely the client's employees. A
client shall be entitled to the benefit of any tax credit, economic incentive
or other benefit arising as the result of the employment of covered employees
of such client. Notwithstanding that the PEO is the reporting employer for the
purposes of the federal Internal Revenue Service form W-2, the client shall
continue to qualify for the benefit, incentive or credit. Each PEO shall
provide, upon request by a client or by agency employment information
reasonably required for administration of any tax credit or economic incentive
and necessary to support any request, claim, application or other action by a
client seeking any tax credit or economic incentive.
(2) With respect to a bid, contract, purchase
order or agreement entered into with the Commonwealth or a political
subdivision thereof, a client company's status or certification under federal
or state law as a small, minority-owned, disadvantaged, woman-owned business or
other underutilized class of enterprise shall not be affected because the
client company has entered into a PEO relationship.
(3) If there is a tax or assessment imposed
or calculated upon the basis of total payroll, the PEO shall be eligible to
apply any small business allowance or exemption available to the client for the
covered employees for the purpose of computing the tax.