S T A T E O F N E W Y O R K
________________________________________________________________________
11282
I N A S S E M B L Y
May 6, 2026
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Rozic) --
read once and referred to the Committee on Consumer Affairs and
Protection
AN ACT to amend the general business law, in relation to requiring a
payroll services business to compile and provide annual wage and tax
statements and/or year-end forms to clients
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The general business law is amended by adding a new section
394-j to read as follows:
§ 394-J. REQUIREMENTS FOR CERTAIN CONTRACTS INVOLVING PAYROLL SERVICES
BUSINESSES. 1. ANY PAYROLL SERVICES BUSINESS ENTERING INTO A PAYROLL
SERVICE CONTRACT OR OTHER AGREEMENT WITH A CLIENT SHALL, AS A CONDITION
OF SUCH CONTRACT OR OTHER AGREEMENT, COMPILE AND PROVIDE SUCH CLIENT'S
AND SUCH CLIENT'S EMPLOYEES' ANNUAL WAGE AND TAX STATEMENTS, INCLUDING
BUT NOT LIMITED TO W-2 FORMS, AND/OR ANY YEAR-END FORMS WITHOUT ADDI-
TIONAL COST OR DELAY. NO FINANCIAL OR OTHER DISPUTE BETWEEN THE PAYROLL
SERVICES BUSINESS AND ITS CLIENT SHALL ALLOW SUCH PAYROLL SERVICES BUSI-
NESS TO WITHHOLD, DELAY, OR FAIL TO DELIVER ITS CLIENT'S AND CLIENT'S
EMPLOYEES' ANNUAL WAGE AND TAX STATEMENTS AND/OR ANY YEAR-END FORMS.
2. ANY PAYROLL SERVICES BUSINESS THAT VIOLATES THIS SECTION IS LIABLE
FOR A CIVIL PENALTY OF NOT MORE THAN ONE THOUSAND DOLLARS FOR A FIRST
VIOLATION AND A CIVIL PENALTY OF NOT MORE THAN ONE THOUSAND FIVE HUNDRED
DOLLARS FOR EACH SUCCEEDING VIOLATION.
3. (A) FOR PURPOSES OF THIS SECTION, THE TERM "PAYROLL SERVICES BUSI-
NESS" SHALL MEAN A BUSINESS, WITH THE EXCEPTION OF AN OFFICE OF A CERTI-
FIED PUBLIC ACCOUNTANT, ENGAGED IN THE FOLLOWING WITHOUT ALSO PROVIDING
ACCOUNTING, BOOKKEEPING, OR BILLING SERVICES:
(1) COLLECTING INFORMATION ON HOURS WORKED, PAY RATES, DEDUCTIONS, AND
OTHER PAYROLL-RELATED DATA FROM THEIR CLIENTS; AND
(2) USING SUCH INFORMATION TO GENERATE PAYCHECKS, PAYROLL REPORTS, AND
TAX FILINGS.
(B) A PAYROLL SERVICES BUSINESS MAY USE DATA PROCESSING AND TABULATING
TECHNIQUES AS PART OF PROVIDING THEIR SERVICES.
§ 2. This act shall take effect on the ninetieth day after it shall
have become a law.
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