State compliance In many states, PEOs must be licensed. Currently, 37 states require licensing, with some states allowing a company to apply only if there are employees/wages in that state. In addition to licenses, PEOs must maintain up-to-date compliance filings, including: • PEO registrations and renewals • Client addition and termination • State and income tax account reporting registrations • Quarterly payroll tax certification • State unemployment account • Notice of cancellation of workers’ registrations compensation coverage • New employee notices • Unemployment insurance quarterly • Required workplace posters tax and wage reporting Where required, PEOs must also be bonded. A surety bond is a way to guarantee the PEO’s obligations to the state, such as payment of employment taxes, unemployment insurance, and workers’ compensation coverage. Rippling’s financial strength, access to financial markets, and focus on in-house compliance have enabled us to access and secure all required surety bonds required to maintain ongoing compliance. End-to-end PEO compliance At Rippling PEO, we have implemented robust administrative, technical, and contractual controls to maintain an end-to-end PEO compliance program. Internal policies and compliance reports Rippling’s Insurance and Regulatory Committee reviews all key policies and compliance reports, while our Compliance team maintains docu- mentation providing more detailed information on operational standards. rippling.com | PEO Compliance Program 2