NY State Senate Bill 2019-S6724A

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 28, 2020	committed to rules
Jan 27, 2020	advanced to third reading
Jan 23, 2020	2nd report cal.
Jan 22, 2020	1st report cal.254
Jan 16, 2020	committee discharged and committed to finance
Jan 13, 2020	print number 6724a
Jan 13, 2020	amend (t) and recommit to budget and revenue
Jan 08, 2020	referred to budget and revenue
Sep 18, 2019	referred to rules

Votes

- Jan 22, 2020 - Finance Committee Vote
  S6724A
  
  Aye
  
  12
  
  Nay
  
  0
  
  Aye with Reservations
  
  11
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Finance Committee Vote: Jan 22, 2020
      
      aye (12)
      
      Bailey
      
      Benjamin
      
      Comrie
      
      Hoylman-Sigal
      
      Kennedy
      
      LaValle
      
      Lanza
      
      Liu
      
      Montgomery
      
      Parker
      
      Stavisky
      
      Thomas
      
      aye wr (11)
      
      Breslin
      
      Gallivan
      
      Krueger
      
      Little
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Savino
      
      Seward
      
      Skoufis

Bill Amendments

Original

A (Active)

2019-S6724 - Details

Current Committee:: Senate Rules
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L

2019-S6724 - Summary

Provides that for taxable years beginning on or after January first, two thousand nineteen, a qualified taxpayer will be able to claim a refundable credit up to two hundred fifty dollars for eligible losses incurred from the interruption in the payment of their wages or salary due to an action by a payroll service company; defines terms; makes related provisions.

2019-S6724 - Sponsor Memo

                                
 
BILL NUMBER: S6724

SPONSOR: BENJAMIN
 
TITLE OF BILL:  An act to amend the tax law, in relation to the losses
from payroll interruption credit

 
PURPOSE::

To provide a refundable income credit of up to $250 for losses and
penalties incurred due to the loss of a paycheck by an employee due to
the actions of a payroll service company.

 
SUMMARY OF PROVISIONS::

Section 1 of the bill adds a new subsection (kkk) to Tax Law section 606
to create a refundable income tax credit of up to $250 for any eligible
losses such as late payments and fees for late rent payments or late
loan payments incurred by a qualified taxpayer because of the delay or
loss of a paycheck due to the actions of a payroll service company.

A qualified taxpayer is a New York resident filer making up to $90,000

in federal AGI unless they are filing married jointly, in which case the
income eligibility is $180,000 in federal AGI.

Section 2 creates an effective date.

 
JUSTIFICATION::

In early September 2019 a payroll service company, MyPayrollHR, closed
down its business suddenly, leaving over 5,000 employers nationwide with
over 250,000 employees in a sudden financial crush, as employees found
that they had not been paid on time, with many employees finding that in
fact money has been taken from their bank accounts not only for the
missing paycheck, but for a previous paycheck.  MyPayrollHR stands
accused of defrauding other companies of over $35 million and is now
being investigated. Unfortunately, this comes as cold comfort for the
thousands of New Yorkers who have found themselves in financial diffi-
culty due to their sudden loss of income even as necessary payments are
due.

This proposal is aimed at providing these New Yorkers with a modicum of
relief by allowing employees who have seen their pay affected negatively
by the actions of a payroll service company to claim a tax credit of up
to $250 for any penalties or fees their incurred due to the sudden loss
of income caused by the actions of this payroll service company.

 
LEGISLATIVE HISTORY::

This is a new bill

 
FISCAL IMPLICATIONS::

To be determined

2019-S6724 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6724
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                            September 18, 2019
                                ___________
 
 Introduced  by Sen. BENJAMIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the tax law, in relation  to  the  losses  from  payroll
   interruption credit
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
 subsection (kkk) to read as follows:
   (KKK)  LOSSES  FROM PAYROLL INTERRUPTION CREDIT. (1) FOR TAXABLE YEARS
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, A  QUALIFIED
 TAXPAYER  WILL  BE  ABLE  TO CLAIM A REFUNDABLE CREDIT UP TO TWO HUNDRED
 FIFTY DOLLARS FOR ELIGIBLE LOSSES INCURRED FROM THE INTERRUPTION IN  THE
 PAYMENT  OF  THEIR WAGES OR SALARY DUE TO AN ACTION BY A PAYROLL SERVICE
 COMPANY.
   (2) FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING  DEFINITIONS  SHALL
 APPLY:
   (I)  "QUALIFIED  TAXPAYER"  SHALL  MEAN  A RESIDENT OF NEW YORK WITH A
 FEDERAL ADJUSTED GROSS INCOME UP TO NINETY THOUSAND DOLLARS IF FILING AS
 A SINGLE, HEAD OF HOUSEHOLD, OR QUALIFIED WIDOW(ER) FILER OR ONE HUNDRED
 EIGHTY THOUSAND DOLLARS IF MARRIED FILING JOINTLY.
   (II) "ELIGIBLE LOSSES" SHALL MEAN ANY PENALTIES OR FEES  INCURRED  DUE
 TO HAVING A LOSS OF WAGES OR SALARY DUE TO THE DELAY, WITHDRAWAL OR LOSS
 OF  A  PAYCHECK  OR  PAYCHECKS  DUE TO THE ACTIONS OF A PAYROLL COMPANY,
 INCLUDING BUT NOT LIMITED TO FEES AND PENALTIES FOR  AN  OVERDRAWN  BANK
 ACCOUNT, LATE RENT PAYMENT, LATE LOAN PAYMENTS, OR OTHER LOSSES.
   (III)  "PAYROLL  SERVICE  COMPANY"  MEANS  A COMPANY CONTRACTED BY THE
 QUALIFIED TAXPAYER'S EMPLOYER TO HANDLE RESPONSIBILITIES  INCLUDING  BUT
 NOT  LIMITED  TO  SETTING  UP  AND  MAKING ADJUSTMENTS TO DIRECT DEPOSIT
 ACCOUNTS, CALCULATING PAYROLL TAXES AND ENSURING CORRECT DEDUCTIONS  ARE
 MADE,  PROVIDING  ELECTRONIC PAYROLL RECORDS TO EMPLOYEES AND EMPLOYERS,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13815-01-9

 S. 6724                             2
 
 AND ENSURING COMPLIANCE  WITH  ALL  STATE  AND  FEDERAL  LAWS  GOVERNING
 PAYROLL AND PAYROLL DEDUCTIONS.
   (3)  IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY
 TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  THE  EXCESS
 SHALL  BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   (4) CREDIT RECAPTURE. FOR PROVISIONS REQUIRING  RECAPTURE  OF  CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2019.

co-Sponsors

2019-S6724A (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Tax Law
Laws Affected:: Amd §606, Tax L

2019-S6724A (ACTIVE) - Summary

2019-S6724A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6724A

SPONSOR: BENJAMIN
 
TITLE OF BILL:

An act to amend the tax law, in relation to the losses from payroll
interruption credit; and providing for the repeal of such provisions
upon expiration thereof

 
PURPOSE:

To provide a refundable income credit of up to $250 for losses and
penalties incurred due to the loss of a paycheck by an employee due to
the actions of a payroll service company.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill adds a new subsection (kkk) to Tax Law section 606
to create a refundable income tax credit of up to $250 for any eligible
losses such as late payments and fees for late rent payments or late
loan payments incurred by a qualified taxpayer because of the delay or

loss of a paycheck due to the actions of a payroll service company.

A qualified taxpayer is a New York resident filer making up to $90,000
in federal AGI unless they are filing married jointly, in which case the
income eligibility is $180,000 in federal AGI. A payroll service company
is defined, as are automated clearing house processors, and automated
clearing house networks. A process for claims is described.

Section 2 creates an effective date.

 
JUSTIFICATION:

In early September 2019 a payroll service company, MyPayrol1HR, closed
down its business suddenly, leaving over 5,000 employers nationwide with
over 250,000 employees in a sudden financial crush, as employees found
that they had not been paid on time, with many employees finding that in
fact money has been taken from their bank accounts not only for the
missing paycheck, but for a previous paycheck.  MyPayrol1HR stands
accused of defrauding other companies of over $35 million and is now
being investigated. Unfortunately, this comes as cold comfort for the
thousands of New Yorkers who have found themselves in financial diffi-
culty due to their sudden loss of income even as necessary payments are
due.

This proposal is aimed at providing these New Yorkers with a modicum of
relief by allowing employees who have seen their pay affected negatively
by the actions of a payroll service company to claim a tax credit of up
to $250 for any penalties or fees their incurred due to the sudden loss
of income caused by the actions of this payroll service company.

 
LEGISLATIVE HISTORY:

This is a new bill

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
Immediately and applying to tax years beginning on January 1, 2019.

2019-S6724A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6724--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                            September 18, 2019
                                ___________
 
 Introduced  by Sen. BENJAMIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules  --  recommitted  to
   the  Committee on Budget and Revenue in accordance with Senate Rule 6,
   sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
   amended and recommitted to said committee

 AN  ACT  to  amend  the  tax law, in relation to the losses from payroll
   interruption credit; and providing for the repeal of  such  provisions
   upon expiration thereof
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
 subsection (kkk) to read as follows:
   (KKK)  LOSSES  FROM PAYROLL INTERRUPTION CREDIT. (1) FOR TAXABLE YEARS
 BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, A  QUALIFIED
 TAXPAYER  WILL  BE  ABLE  TO CLAIM A REFUNDABLE CREDIT UP TO TWO HUNDRED
 FIFTY DOLLARS FOR ELIGIBLE LOSSES INCURRED FROM THE INTERRUPTION IN  THE
 PAYMENT  OF  THEIR WAGES OR SALARY DUE TO AN ACTION BY A PAYROLL SERVICE
 COMPANY OR AN AUTOMATED CLEARING HOUSE PROCESSOR.
   (2) FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING  DEFINITIONS  SHALL
 APPLY:
   (I)  "QUALIFIED  TAXPAYER"  SHALL  MEAN  A RESIDENT OF NEW YORK WITH A
 FEDERAL ADJUSTED GROSS INCOME UP TO NINETY THOUSAND DOLLARS IF FILING AS
 A SINGLE, HEAD OF HOUSEHOLD, OR QUALIFIED WIDOW(ER) FILER OR ONE HUNDRED
 EIGHTY THOUSAND DOLLARS IF MARRIED FILING JOINTLY.
   (II) "ELIGIBLE LOSSES" SHALL MEAN ANY PENALTIES OR FEES  INCURRED  DUE
 TO HAVING A LOSS OF WAGES OR SALARY DUE TO THE DELAY, WITHDRAWAL OR LOSS
 OF A PAYCHECK OR PAYCHECKS DUE TO THE ACTIONS OF A PAYROLL COMPANY OR AN
 AUTOMATED  CLEARING  HOUSE  PROCESSOR, INCLUDING BUT NOT LIMITED TO FEES
 AND PENALTIES FOR AN OVERDRAWN BANK ACCOUNT,  LATE  RENT  PAYMENT,  LATE
 LOAN PAYMENTS, OR OTHER LOSSES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13815-02-0

 S. 6724--A                          2
 
   (III)  "PAYROLL  SERVICE  COMPANY"  MEANS  A COMPANY CONTRACTED BY THE
 QUALIFIED TAXPAYER'S EMPLOYER TO HANDLE RESPONSIBILITIES  INCLUDING  BUT
 NOT  LIMITED  TO  SETTING  UP  AND  MAKING ADJUSTMENTS TO DIRECT DEPOSIT
 ACCOUNTS, CALCULATING PAYROLL TAXES AND ENSURING CORRECT DEDUCTIONS  ARE
 MADE,  PROVIDING  ELECTRONIC PAYROLL RECORDS TO EMPLOYEES AND EMPLOYERS,
 AND ENSURING COMPLIANCE  WITH  ALL  STATE  AND  FEDERAL  LAWS  GOVERNING
 PAYROLL AND PAYROLL DEDUCTIONS.
   (IV)  "AUTOMATED CLEARING HOUSE PROCESSOR" MEANS A COMPANY RESPONSIBLE
 FOR PROCESSING PAYMENTS ON AN AUTOMATED CLEARING HOUSE NETWORK.
   (V) "AUTOMATED CLEARING HOUSE NETWORK" MEANS  ANY  ELECTRONIC  NETWORK
 UTILIZED  TO  MAKE ELECTRONIC FUND TRANSFERS GOVERNED BY RULES AND REGU-
 LATIONS ESTABLISHED BY THE NATIONAL AUTOMATED CLEARING HOUSE ASSOCIATION
 (NACHA).
   (3) PROOF OF CLAIM. THE COMMISSIONER MAY REQUIRE A QUALIFIED  TAXPAYER
 TO FURNISH INFORMATION NECESSARY TO PROVE THAT THE ELIGIBLE LOSSES BEING
 CLAIMED  ARE  THE  RESULT  OF  A SPECIFIC INTERRUPTION IN THE PAYMENT OF
 WAGES AND SALARY TO THE TAXPAYER, AS DETERMINED BY THE COMMISSIONER.
   (4) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR  ANY
 TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
 SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN
 ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
 ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
   (5)  CREDIT  RECAPTURE.  FOR PROVISIONS REQUIRING RECAPTURE OF CREDIT,
 SEE SECTION FORTY-FOUR OF THIS CHAPTER.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2019 and  shall  expire  and  be
 deemed repealed January 1, 2021.

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Senate Bill S6724A

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

Actions

Votes

Jan 22, 2020 - Finance Committee Vote

Finance Committee Vote: Jan 22, 2020

Bill Amendments

2019-S6724 - Details

2019-S6724 - Summary

2019-S6724 - Sponsor Memo

2019-S6724 - Bill Text download pdf

co-Sponsors

2019-S6724A (ACTIVE) - Details

2019-S6724A (ACTIVE) - Summary

2019-S6724A (ACTIVE) - Sponsor Memo

2019-S6724A (ACTIVE) - Bill Text download pdf

Comments

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Senate Bill S6724A

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Sponsored By

Brian Benjamin

Archive: Last Bill Status - In Senate Committee Rules Committee

Actions

Votes

Bill Amendments

2019-S6724 - Details

2019-S6724 - Summary

2019-S6724 - Sponsor Memo

2019-S6724 - Bill Text download pdf

co-Sponsors

Kevin S. Parker

2019-S6724A (ACTIVE) - Details

2019-S6724A (ACTIVE) - Summary

2019-S6724A (ACTIVE) - Sponsor Memo

2019-S6724A (ACTIVE) - Bill Text download pdf

Comments