Question 1

Is PEO licensing required in Utah?

Accepted Answer

Yes. Utah requires PEOs to be licensed by the Insurance Department under the Professional Employer Organization Licensing Act (Utah Code 31A-40). Three license types exist: non-assurance, assurance-organization certified, and small operation.

Question 2

What are the three PEO license types in Utah?

Accepted Answer

Utah offers three license categories: a non-assurance license for PEOs with a Utah office; an assurance-organization license for PEOs certified by an approved national organization; and a small-operation license for PEOs with no Utah office and 50 or fewer employees in the state.

Question 3

What are the financial requirements for Utah PEOs?

Accepted Answer

Non-assurance licensees must maintain at least $100,000 in working capital under GAAP while licensed, or provide a bond, irrevocable letter of credit, or securities equal to any deficiency. The license terminates 180 days after the commissioner finds a deficiency if it is not cured.

Question 4

What is the SUI taxable wage base in Utah?

Accepted Answer

The 2026 SUI taxable wage base in Utah is $50,700. New employer rates vary by industry, with non-construction employers paying about 1.1%.

Question 5

What is the minimum wage in Utah?

Accepted Answer

The minimum wage in Utah is the federal minimum of $7.25 per hour. Utah has no state minimum wage law.

Question 6

Does Utah have a paid family leave mandate?

Accepted Answer

No. Utah has no paid sick leave or paid family and medical leave mandate.

Utah PEO FAQs: Insurance Department Licensing and Three License Tiers

Frequently Asked Questions