Indiana § 27-16-6-1 - Financial requirements
Full text of Indiana Indiana Code § 27-16-6-1 — Financial requirements, with citation guidance and answers to common questions.
§ 27-16-6-1. Financial requirements
Sec. 1. (a) A PEO or PEO group shall do one (1) of the following:
(1) Maintain positive working capital, as reflected in the financial statement submitted to the department by the PEO or PEO group under IC 27-16-4.
(2) If the PEO or PEO group does not meet the requirement of subdivision (1), maintain any of the following with a minimum aggregate value in an amount that is at least sufficient to eliminate the PEO's or PEO group's negative working capital plus one hundred thousand dollars ($100,000):
(A) A surety bond.
(B) An irrevocable letter of credit.
(C) Cash.
(D) A combination of items listed in clauses (A) through (C).
(b) An instrument or cash described in subsection (a)(2) must be held by an institution designated by the department, securing payment by the PEO or PEO group of all taxes, wages, benefits, or other entitlement due to or with respect to covered employees in the event that the PEO or PEO group does not make the payments when due.
As added by P.L.245-2005, SEC.7. Amended by P.L.11-2011, SEC.44.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 27-16-6-1
What does Indiana Code § 27-16-6-1 cover?
Section 27-16-6-1 ("Financial requirements") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 27-16-6-1?
A common citation format is "Indiana Code § 27-16-6-1" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 27-16-6-1 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.