PEO Compliance Program

PEO Compliance Program Rippling PEO is offered by Rippling PEO 1, Inc., CONTENTS a wholly owned subsidiary and a fully licensed State compliance professional employer organization (PEO). Rippling End-to-end PEO PEO provides comprehensive HR solutions for compliance small and mid-size businesses such as access to – Internal policies and better, more affordable benefits, multi-state tax compliance reports registrations, and a multitude of administrative HR – Resources and functions—like payroll, compliance, and workers’ expertise compensation. – Training – Technical tools As a PEO, Rippling PEO acts as a co-employer. – Licensing program That means we divide responsibilities with our – Reliability client companies: we provide a comprehensive set Additional resources of HR, payroll, benefits, tax registration, and compliance services while letting clients maintain control over their day-to-day operations, including hiring and compensation decisions. 1 2 2 1 5 0 _ O E P _ r e p a p e t i Wh : E NAM LE I F

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

Resources and expertise Rippling is a member of the National Association of Professional Employer Organizations (NAPEO), which hosts industry events and maintains a regulatory database that we use to stay up to date on relevant federal, state, and local requirements for PEOs. The knowledgeable, experienced advisors of the NAPEO also provide us with insights and guidance on topics like: • Co-employment • State unemployment • PEO licensing and compliance registrations and other filings • Benefits and workers’ compensation • Payroll tax matters Training Regular training is conducted to provide relevant and timely information to individuals involved in the PEO. Technical tools We use the Employer Services Assurance Corporation’s (ESAC) PEO compliance tools to ensure on-time filings. These tools automate compliance notices and filings to ensure compliance with both PEO- and customer-level regulatory requirements. Licensing program Rippling PEO is licensed in all states that require special licensing to operate a PEO. Copies of our PEO licenses can be accessed here. Reliability With access to financial markets plus significant venture capital backing, including our most recent infusion of $145M, Rippling is uniquely able to provide a safe, reliable PEO program. And by maintaining a robust corporate insurance program, we sufficiently protect our entities from downside risk. rippling.com | PEO Compliance Program 3

Additional resources How does a PEO work? Benefits of a PEO for small businesses and startups How to choose a PEO The Rippling PEO Rippling PEO licenses Rippling helps businesses manage all their employee operations— from HR to IT—in a single place, enabling you to automate payroll, benefits, computers, apps, and more. © 2021 Rippling 4