A01522 Summary:

BILL NO    A01522 

SAME AS    No same as 

SPONSOR    Cahill (MS)

COSPNSR    

MLTSPNSR   Clark, Colton, Cook, Rivera

Amd S512, Lab L

Relates to the liability of certain limited liability companies and
partnerships, those which are less than two persons, for the purposes of
unemployment insurance.
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A01522 Memo:

BILL NUMBER:A1522

TITLE  OF  BILL:    An  act  to  amend  the  labor law, in relation to
liability under the unemployment  insurance  law  of  certain  limited
liability partnerships and companies

PURPOSE OR GENERAL IDEA OF BILL:

The  legislation  creates  a  statutory  distinction  between  Limited
Liability Companies and "Single Member" Limited  Liability  Companies,
by  formally  adding  LLCs  to  the  definition  of  "employer"  under
Unemployment Insurance provisions and requiring  that  such  companies
shall not include those which are less than two persons.

SUMMARY OF SPECIFIC PROVISIONS:

The  bill adds a new Subdivision 2-a to Article 18, Section 512 of the
Labor Law, creating the above distinction.

JUSTIFICATION:

This bill seeks to encourage small business growth  by  eliminating  a
loophole  in  the  Insurance  Law  which creates an unnecessary tax on
Single-Member Limited Liability Companies. In an instance where a sole
proprietor chooses to develop  his  or  her  own  innovative  business
solutions, it is often beneficial for such a person to reorganize as a
single-member   limited   liability  company.    While  available  tax
documentation indicates that such a  company  most  resembles  a  sole
proprietorship,  New  York  State  currently holds a single-member LLC
liable for unemployment taxes, even though there is currently  nothing
in  statute  which  specifically addresses the single-member LLC. This
creates a situation where, if such business  owner  employs  a  spouse
under  current law, the company must pay unemployment insurance on the
spouse. This tax is excessive, especially given that the single-member
LLC is not required to pay federal unemployment tax.

LEGISLATIVE HISTORY:

2013-2014 A.1597 Referred to Labor
2011-2012 A.98 Referred to Labor
2009-2010 A.596 Referred to Labor
2007-2008 A.4788 Referred to Labor
2005-2006 A.5742 Referred to Labor
2003-2004 A.295 Referred to Labor
2001-2002 referred to labor

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.
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A01522 Text:

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

                                         1522

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                   January 12, 2015
                                      ___________

       Introduced  by  M. of A. CAHILL -- Multi-Sponsored by -- M. of A. CLARK,
         COLTON, COOK, RIVERA -- read once and referred  to  the  Committee  on
         Labor

       AN  ACT to amend the labor law, in relation to liability under the unem-
         ployment insurance law of certain limited liability  partnerships  and
         companies

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. Section 512 of the labor law is amended  by  adding  a  new
    2  subdivision 2-a to read as follows:
    3    2-A.  FOR THE PURPOSES OF THIS ARTICLE, THE TERM "EMPLOYER" INCLUDES A
    4  PARTNER OF A REGISTERED LIMITED  LIABILITY  PARTNERSHIP  AS  DEFINED  IN
    5  SECTION  TWO  OF  THE  PARTNERSHIP  LAW, A MEMBER OF A LIMITED LIABILITY
    6  COMPANY AS DEFINED IN SUBDIVISION (M) OF SECTION ONE HUNDRED TWO OF  THE
    7  LIMITED  LIABILITY  COMPANY  LAW  OR  A MEMBER OF A PROFESSIONAL SERVICE
    8  LIMITED LIABILITY COMPANY AS  DEFINED  IN  SUBDIVISION  (F)  OF  SECTION
    9  TWELVE  HUNDRED  ONE  OF  THE  LIMITED  LIABILITY COMPANY LAW; PROVIDED,
   10  HOWEVER, THAT SUCH LIMITED LIABILITY PARTNERSHIPS  AND  COMPANIES  SHALL
   11  NOT INCLUDE THOSE WHICH ARE LESS THAN TWO PERSONS.
   12    S 2. This act shall take effect immediately.




        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06244-01-5
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