Requires a payroll services business to compile and provide annual wage and tax statements and/or year-end forms to clients

S T A T E   O F   N E W   Y O R K
        ________________________________________________________________________

                                          9755

                                    I N  S E N A T E

                                      April 2, 2026
                                       ___________

        Introduced  by  Sen.  SUTTON -- read twice and ordered printed, and when
          printed to be committed to the Committee on Consumer 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:

     1    Section 1. The general business law is amended by adding a new section
     2  394-j to read as follows:
     3    § 394-J. REQUIREMENTS FOR CERTAIN CONTRACTS INVOLVING PAYROLL SERVICES
     4  BUSINESSES.  1.  ANY  PAYROLL  SERVICES BUSINESS ENTERING INTO A PAYROLL
     5  SERVICE CONTRACT OR OTHER AGREEMENT WITH A CLIENT SHALL, AS A  CONDITION
     6  OF  SUCH  CONTRACT OR OTHER AGREEMENT, COMPILE AND PROVIDE SUCH CLIENT'S
     7  AND SUCH CLIENT'S EMPLOYEES' ANNUAL WAGE AND TAX  STATEMENTS,  INCLUDING
     8  BUT  NOT  LIMITED  TO W-2 FORMS, AND/OR ANY YEAR-END FORMS WITHOUT ADDI-
     9  TIONAL COST OR DELAY.  NO FINANCIAL OR OTHER DISPUTE BETWEEN THE PAYROLL
    10  SERVICES BUSINESS AND ITS CLIENT SHALL ALLOW SUCH PAYROLL SERVICES BUSI-
    11  NESS TO WITHHOLD, DELAY, OR FAIL TO DELIVER ITS  CLIENT'S  AND  CLIENT'S
    12  EMPLOYEES' ANNUAL WAGE AND TAX STATEMENTS AND/OR ANY YEAR-END FORMS.
    13    2. A CLIENT OF A PAYROLL SERVICES BUSINESS AND SUCH CLIENT'S EMPLOYEES
    14  DAMAGED  BY A VIOLATION OF THIS SECTION MAY BRING AN ACTION FOR RECOVERY
    15  OF  DAMAGES;  PROVIDED,  HOWEVER,  NOTHING  IN  THIS  SECTION  SHALL  BE
    16  CONSTRUED  TO  AUTHORIZE A CLIENT'S EMPLOYEES TO BRING AN ACTION AGAINST
    17  SUCH CLIENT FOR ANY DAMAGES CAUSED BY A VIOLATION OF THIS SECTION  BY  A
    18  PAYROLL SERVICES BUSINESS.
    19    3.  (A) FOR PURPOSES OF THIS SECTION, THE TERM "PAYROLL SERVICES BUSI-
    20  NESS" SHALL MEAN A BUSINESS, WITH THE EXCEPTION OF AN OFFICE OF A CERTI-
    21  FIED PUBLIC ACCOUNTANT, ENGAGED IN THE FOLLOWING WITHOUT ALSO  PROVIDING
    22  ACCOUNTING, BOOKKEEPING, OR BILLING SERVICES:
    23    (1) COLLECTING INFORMATION ON HOURS WORKED, PAY RATES, DEDUCTIONS, AND
    24  OTHER PAYROLL-RELATED DATA FROM THEIR CLIENTS; AND
    25    (2) USING SUCH INFORMATION TO GENERATE PAYCHECKS, PAYROLL REPORTS, AND
    26  TAX FILINGS.

         EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15148-03-6
        S. 9755                             2

     1    (B) A PAYROLL SERVICES BUSINESS MAY USE DATA PROCESSING AND TABULATING
     2  TECHNIQUES AS PART OF PROVIDING THEIR SERVICES.
     3    §  2.  This  act shall take effect on the ninetieth day after it shall
     4  have become a law.