Section 27-16-7-6 - Basis of fees or taxes on PEOs(a) A business license fee or another fee that is based upon gross receipts must, in the case of a PEO, be based upon the administrative fee of the PEO.(b) A tax assessed on a per capita or per employee basis must be assessed against a:(1) client for covered employees; and(2) PEO for the PEO's employees who are not covered employees.(c) In the case of tax imposed or calculated upon the basis of total payroll, a PEO is eligible to apply a small business allowance or exemption available to the client for covered employees for the purpose of computing the tax.As added by P.L. 245-2005, SEC.7.