Definition
Paying Social Security, FUTA or state unemployment tax again on wages already taxed earlier in the year, after switching employers of record.
Wage base restart explained
When you join or leave a PEO mid-year, some wage bases can restart, so taxes already paid up to the cap are paid again. Using a Certified PEO generally prevents this for federal taxes; state rules vary.
Starting a PEO on January 1 avoids most of the issue.
Where Wage base restart comes up
Services
Also referenced in: PEO exit