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This entry was published on 2014-09-22
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Minimum net worth, bonding and reporting
§ 921. Minimum net worth, bonding and reporting. 1. Every initial
registration and subsequent annual reporting shall be accompanied by a
reviewed or an audited financial statement of the professional employer
organization's most recent fiscal year end and prepared within one
hundred eighty days prior to the date of application or renewal by an
independent certified public accountant in accordance with generally
accepted accounting principles, which statement shall show a minimum net
worth of seventy-five thousand dollars, and shall be accompanied by a
cover letter from the independent certified public accountant that the
professional employer organization has satisfied the requirements of
this section. A professional employer organization group may submit
combined or consolidated audited or reviewed financial statements to
meet the requirements of this section. Where the group or the group's
parent submits a combined or consolidated statement, the statement shall
include supplemental consolidating or combining schedules covering each
professional employer organization registered under the group.

2. As a substitute for the requirement set forth in subdivision one of
this section, the department may require that the professional employer
organization deposit in a depository designated by the department a bond
or securities with a minimum market value of seventy-five thousand
dollars. The securities so deposited shall include authorizations to the
department to sell those securities in an amount sufficient to pay any
taxes, wages, benefits or other entitlement due a worksite employee, if
the professional employer organization does not make those payments when
due. Any bond or securities deposited under this subdivision shall not
be included for the purpose of calculation of net worth required by
subdivision one of this section.

3. Every professional employer organization shall submit to the
department, within sixty days after the end of each calendar quarter, a
statement by an independent certified public accountant that all
applicable federal and state payroll taxes have been paid on a timely
basis for that quarter.

4. All records, reports and other information obtained from a
professional employer organization under this article, except to the
extent necessary for the proper administration by the department of this
article and all applicable labor laws, shall be confidential and shall
not be published or open to public inspection other than to public
employees in the performance of their public duties.

5. The department may rescind, suspend or revoke a registration for
failure to comply with this article. Should a registrant wish to contest
an action of the department, the department may require such additional
financial assurances or bond required to protect the interests of the
state and its citizens during the course of the appeal. Two or more
violations by a professional employer organization, of any kind, of this
article within any five year period shall be grounds for revocation of a
registration and no new registration shall be granted for a period of
two years to such professional employer organization or to any person
who was or should have been listed by such professional employer
organization at the time of registration in compliance with paragraph
(e) of subdivision one of section nine hundred nineteen of this article.